Property News

Finance & Morgage

• Market value: Definition, Overview & FAQs

  Definition: The real worth of your property when it is put up for sale on the open market is referred to as its market value. Buyers set it and define it as the price they will be willing to pay to buy the house.

• Capitalization Rate: Definition, Overview & FAQ

  Definition: The term capitalization rate, sometimes known as the “cap rate,” is frequently used in the real estate industry to describe the rate of return on a property that is determined by the net operational income the asset produces.

• Property Valuation: Definition, Overview & FAQ

  Definition: Property valuation is the process of determining a property’s current value using characteristics such as location, condition, size, and market trends.

• Closing Costs: Definition, Overview & FAQ

  Definition: The many fees and charges that purchasers and sellers must pay to complete a property transaction are referred to as closing costs in the real estate industry.

• Capital gains: Definition, Overview & FAQ

  Definition: A capital gain is the profit earned by an investor when they sell a capital asset for more than the original purchase price.

• Property taxes: Definition, Overview & FAQ

  Definition: A property tax is an annual or semiannual fee levied by a local government and paid by real estate owners in its jurisdiction.

• Down payment: Definition, Overview & FAQ

  Definition: A down payment is a percentage of a buyer’s total purchase price in full when buying an investment property.

• First-time Buyer: Definition, Overview & FAQ

  Definition: A first-time buyer in real estate is someone who is buying their first home and has never previously owned a residential property, either in the UK or abroad.

• Rate of return – Definition, Overview & FAQ

  Definition: The rate of return (ROR) is a financial term that refers to the proportion of profit or loss on an investment relative to its original cost. This statistic is used to assess or evaluate the efficiency of various investments.

• Fixed-rate – Definition, Overview & FAQ

  Definition: In real estate, the fixed-rate typically refers to a loan or mortgage wherein the interest rate remains constant throughout the entire repayment period.

• Mortgage – Definition, Overview & FAQ

  Definition: A mortgage is a financial agreement where a lender provides a loan to a borrower to purchase real estate, such as a house or land. The property itself serves as collateral, meaning that if the borrower fails to repay the loan, the lender can take ownership through a legal process called foreclosure.

• Diversification – Definition, Overview & FAQ

  Definition: Spreading your investments over a variety of property types and locations can help you lower risk and possibly increase returns when you plan to invest in real estate.

• Active Income – Definition, Overview & FAQ

  Definition: Active income refers to earnings derived from active work or services provided.

• Leasehold Property – Definition, Overview & FAQ

  Definition: A leasehold property is a type of property ownership where you own the property, usually a flat or apartment, for a fixed period as set out in a lease agreement, but you do not own the land on which the building stands.

• Affordability Assessment – Definition, Overview & FAQ

  Definition: Affordability assessment is a process that evaluates whether an
  individual, family, or organization can comfortably bear the cost of a specific
  item, service, or commitment without compromising their financial stability.