FLIPPER Someone that purchases a home , renovates it and sells it for a profit in a short period of time .
FLOATING RATE LOAN A loan where the interest charge changes during the course of a loan due to the rise and fall of indicators such as the market or the BLR ( Base Lending Rate )
FORECLOSURE Legal action taken towards the homeowner by the financial institution because the borrower is unable to make full principal and interest payments on the mortgage . The property that is pledged by the borrower to secure the loan is then sold and the proceeds of the sale are used to settle the outstanding loan amount .
G
GATED AND GUARDED Developments that have perimeter fencing and a guardhouse with controlled access .
GUARDED DEVELOPMENT These developments are often guarded and do not necessarily have perimeter fencing .
GROSS DEVELOPMENT VALUE ( GDV ) The GDV is the figure that is based on the total value possible from the sale of all units within that proposed development .
GROSS INCOME Income before taxes are deducted . liability coverage for the homeowner , together with protection from damages caused by wind , fire , vandalism and other risks .
I
INTEREST RATE The amount charged by the lender to the borrower for borrowing a sum of money expressed as a percentage of the sum borrowed .
INVESTOR A person that invests money into a real estate venture with the expectation of financial gain on the capital invested .
J
JOINT OWNERSHIP Ownership of a property between two or more parties , usually between families , in undivided shares . Also called “ coproprietorship ”.
K
KEEPER Keepers are investors that have the intention to profit from properties by renting them out for at least a year , often many years .
L
LANDLORD The person who rents out his / her property to a tenant . expiry of the lease , usually 99 years .
LETTER OF OFFER ( LO ) A contract between the borrower ( s ) and the bank stating the terms of the housing loan package .
LOAN TENURE A set period that a person will take to fully pay their loan .
LOCK-IN PERIOD The number of years a person is tied to pay off the financial institution . Should you choose to pay off your home loan in full , you will incur a penalty .
LETTER OF ADMINISTRATION A Grant of representation issued by the High Court to a person to allow him to administer the estate of the deceased who died without a will .
LOAN TENURE Number of years taken to fully repay the loan principal and interest as agreed under a specific repayment programme .
M
MAINTENANCE The act of keeping , or the expenditure required to keep a property in a good condition and to perform efficiently the service for which it is used .
MARGIN OF FINANCING The loan amount granted by the financial institution expressed as a percentage of the value of property pledged to secure the loan .
GUARANTOR If a borrower fails to pay , a guarantor is a person or entity that is legally bound to pay the debt incurred by the borrower .
H
HOMEOWNERS INSURANCE An insurance policy that combines
LEASE A contract that states the terms where an owner of a property agrees to rent out the premises or part of it to another party .
LEASEHOLD Land that is returnable to the government for a set period after the
Stay tuned for Part 2 ( N-Z ) in the next issue , for more property jargons .
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