Real Estate Terminology for Beginners
The Beginner’s Guide to Real Estate Jargon
|Stepping into the world of real estate can be intimidating for a number of reasons. Most people are unaware of how to make the right first move when they are new to the real estate industry. Not only do people fear major losses, but the terminology used in the industry itself tends to frighten them to a great extent.|
If you are among those who are interested in investing in real estate, but are afraid to take the first step because of all the jargon, worry no more. Below is a list of some of the most common terms to help you with your first real estate investment:
· Aesthetic Defects refer to problems which compromise the visual appeal of a building or property.
· Annual Percentage Rate (APR)refers to the cost of a loan shown as a percentage. This cost includes all of the interest charges and additional fees. The APR can be used for comparison with mortgage interest rates.
· Arrears are all of the payments, including those for mortgage and rent, which are not made by the due date.
· Bank Valuation is the estimate made of the value of a property after a survey is conducted for mortgage.
· Bond is a deposit which is usually made by tenants to ensure that they will not engage in any activity or behavior which is against the conditions of tenancy.
· Caveats are something you should always keep an eye out for. These refer to the interest or right that a third party might have in the property which you are dealing with.
· Open Market Value is the value of a property in a market where both sellers and buyers are interested and willing to make a transaction.
· Premium is the amount which is payable for an insurance policy every month.
To learn more about real estate terminology and to learn how to make a good investment, contact Nav Sidhu.