Glossary

Equity

The difference between the current value of your home and how much you owe. For example, if your home is worth $400,000 and you still owe $220,000, your equity is $180,000.

Landlord

The owner of a property (such as land, houses or apartments) that is leased or rented to another person

Tenant

A person who occupies land or property rented from a landlord.

Median

The sale price of the middle home in a list of properties ranked from highest to lowest sale price over a set period of time. That means if 71 houses were sold, the sale price of the 36th house would be the median house price.

Capital

Cash or liquid assets that are held for the purpose of making purchases.

 

Rental Yield

The amount of money you make on an investment property by measuring the gap between your overall costs and the income you receive from renting out your property.

 

E-commerce

Buying and selling goods or services using the internet (also known as electronic commerce or internet commerce) .

 

Off the Plan Property

Committing to buying a property that hasn’t yet been built.

Depreciation

The gradual reduction in the value of an asset over time, typically due to wear and tear, age, or obsolescence.

Guarantor

A person who co-signs a loan or credit agreement, and takes responsibility for repaying the debt if the primary borrower is unable to do so. This may include providing collateral or a co-signed promissory note. The guarantor acts as a “guarantee” that the loan will be repaid. They may also be responsible for any late payments or defaults on the loan.

 

Futures Trading Market

A type of derivative contract agreement to buy or sell a specific commodity asset or security at a set future date for a set price.

Marginal Tax Rate

The tax rate that applies to an individual’s last dollar of income. It is the rate at which the last dollar earned is taxed.

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