RealVantage

When investing in real estate using a value-add investment strategy, the investment property typically has little to no cash flow, at the point of purchase.

Annual value (AV) is the estimated gross annual rent of a property if it was rented out, excluding any additional furniture, furnishing or maintenance fees.

The absorption rate is the proportion of properties sold in a specific period relative to the available properties for sale in the market.

Financial leverage is the utilisation of borrowed funds (debt) rather than equity in the purchase of an asset.

Real estate development is the process of creating value by incorporating tangible improvements to the physical land site or property.

An acceleration clause is a term in a contract agreement that accords lenders the right to demand full repayment of a loan when certain conditions to the contract are not met. It outlines instances where a lender can demand loan repayment and the amount required for the repayment.

Liquidity is classified as a form of investment risk, since an investor’s ability to liquidate an asset provides him with more control and less risk.

Have you heard of the term ‘warranty deed’? And do you know how it protects your interests as a property investor? Find out more.