Glossary / Abbreviations

To help you understand the some of the terminology and 'jargon' that may be used when purchasing a property, we have complied this listing.

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d/h - ducted heating

d/w - dishwasher

dbl gar - double garage

dble - double

dble fr - double fronted

dbr - double bedroom

debt coverage - The ability of a property to meet its debt service out of net operating income.

Debt Ratings - are awarded by two international agencies: Standard and Poors and Moodys. The ratings generally cover countries and companies, and rate the risk of investing in them. The ratings given by these agencies influence the level of lending interest rates. For example, a lower rating for a company reflects a greater risk, leading to a higher interest rate charge for lending to them.

debt service - The periodic payment that covers interest on, and retirement of. the outstanding principal of the mortgage loan.

debt/equity ratio - The ratio between an enterprise's loan capital and its equity capital.

dec - decorative

Deed - A legally recorded document containing the title/ownership of the property.

Default - When a borrower fails to make the contractual mortgage repayments or fails to comply with other leagally binding terms and conditions of the mortgage document.

deferred maintenance - Curable, physical deterioration that should be corrected immediately, although work has not commenced.

dep - deposit

Deposit - A percentage of the purchase price paid to the selling enitity to confirm the intention of purchasing of the property.

depreciation - In appraising, a loss in property value from any cause; 2) In regard to improvements, depreciation encompasses both deterioration and obsolescence.

Depreciation - A drop in the value of a property or chattels due to the variable conditions in the market, The depreciation allowance provided by the Tax department on building structures, fixtures and fittings.

det - detached

df - double fronted

dine rm - dining room

direct capitalization - A method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, either by dividing the income estimate by an appropriate rate or by multiplying the income estimate by an appropriate factor.

Disbursement - An outlay of cash or other clauses stated within the Sale of Contract or Contract Note for the function of settling a debt.

discounted cash flow analysis - The procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analyst specifies the quantity, variability, timing, and duration of the income streams as well as the quantity and timing of the reversion and discounts each to its present value at a specified yield rate.

Discretionary Expenses - are those expenses over which you have some control as to the amount you spend, or whether you spend anything at all. Examples include gifts, CDs, books and alcohol. These costs, while those which seem to make life worth living, are also the ones that will get trimmed back if you are looking for extra money to save.

Diversification - describes the practice of ensuring that "all your eggs are not in one basket". Aside form common sense, it has been empirically proven that diversifying your investments reduces risk and increases your return.

Diversified Funds - consists of a mix of investments in different geographic areas, industry sectors or asset classes.

dlug - double lock-up garage

Dual Occupancy - When there are two seperate dwellings on the one block of land which is zoned so that the two distinct dwellings are permitted to be lived in.