Acronyms to Know When Investing in Property

So you want to learn about Investing in Property, but when you go to seminars or speak to an experience investor, you quickly get lost in the jargon. Well, like anything new, it all appears to be mumbo jumbo at the the beginning, but give it time and you will be down with the lingo in no time.
For those green around the ears, below is a list of acronyms (and common property terms) most used in the industry:


ASIC: Australian Securities and Investment CommissionATO: Australian Tax Office

B&H – Buy & Hold

BA – Building Approval

BA – Buyers Agent

CF – Cashflow

confused_acronymsCG – Capital Gains / Capital Growth

CGT – Capital Gains Tax

Cross-Collateralise / Cross-Securitise

DA – Development Approval

DFT – Department of Fair Trading

DHA – Defence Housing Authority

DSR – Debt to Service Ratio

Due Dilligence – Researching a deal

Equity – the sum of the amount of money the property is worth less any outstanding loans

FHOG – First Home Owner’s Grant

FIRB – Federal Investment Review Board

Flip / Flipper – Buy, Renovate & Sell or Buying  a property with the intent to onsell immediately

FMV – Fair Market Value

GST – Goods and Services Tax

IO – Interest Only

IP – Investment Property

IRR – Internal Rate of Return

JV – Joint Venture

LMI – Lenders Mortgage Insurance

LOC – Line Of Credit

LVR – Loan To Value Ratio

NPV – Net Present Value

NRAS – National Rental Affordability Scheme

OSR – Office of State Revenue

OTP – Off The Plan

P&I – Princple & Interest

PA – Per Annum (Per Year)

PM – Property Manager

PPOR (or PPR) – Principle Place of Residence

QS – Quantity Surveyor

REA – Real Estate Agent

Reno – Renovation

ROI – Return On Investment

Serviceability – Your ability to service a loan

SMSF – Self Managed Super Fund

UCV – Unimproved Capital Value

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