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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