Beginners' Guide

A leasehold property is an ownership of a temporary right to use and hold the property by the form of a leasehold title. Leasehold title is an interest in land and entitles the lessee an indefeasible right to use and hold the property.

Pari passu is a latin term meaning “on equal footing” and is usually used to describe a class of assets, equities, investors or creditors.

A buydown is a technique to finance mortgages such that buyers can enjoy a lower interest rate when taking out a mortgage loan for a property they wish to purchase by paying more up-front.

Economic Obsolescence, in the context of real estate, is the depreciation in the value of a property due to external factors that are outside the control of the owner.

Pooled Investment refers to a group of investors injecting funds into a common pool to buy shares or units of an investment product/company.

Foreclosure is a legal process in which a mortgage lender exercises his right to take control over a property, held as a collateral, mostly with the intention to sell it and recover the outstanding dues of the mortgagee or borrower.

Market value, in the context of real estate, is the sale price that an asset is expected to fetch in the market under normal conditions.

Mezzanine debt is typically used to bridge the gap between real estate investors’ equity and the senior debt from their lenders.

A condominium is a large housing complex divided into individual units for the purpose of sale, with each unit having an individual title and hence could be separately owned.

Refinancing your mortgage generally enables you to lower the interest rate levied on your property loan, thereby generating substantial savings in the long run. But do you know enough about refinancing to make a well-informed decision? Read on to learn more!

Whether you are a buyer or a seller of a property, a lease option helps you to increase your chances of securing a deal. Read on to learn more about the benefits and trade-offs arising from the use of lease options and assess whether they are suitable for you.

Build-to-rent refers to a private rented residential property, which are homes specifically designed for renting rather than sale.

Capital gains refer to profits generated from the sale of capital assets of a higher value than what was paid for. Capital assets comprise investment products, such as stocks, bonds, mutual funds or other real estate products like land, houses, just to name a few.

Freehold property refers to property that you can own for an indefinite period of time.

A lease purchase is an agreement between the tenant and the landlord which allows the tenant to purchase the rented property from the landlord once the lease period expires.

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.

Core investment strategy is a conservative investment approach. The fundamental objective of core strategy is long term stable returns by operating core real estate assets that generate a stable cash flow.