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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f tld - fully tiled

f/furn - fully furnished

Fee Simple - The interest a person can have in real estate title. Others are Strata Title and Company Title.

fee simple estate - Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.

fib - fibro

fib - fibro

Finance Rate - describes the total cost of credit. It includes all charges relating to a loan, not just the stated interest rate. Under the Credit Contracts Act, the finance rate must be disclosed.

Financial adviser - is a role synonymous with that of an investment adviser, and essentially covers any person - from a lawyer to a bank officer - who gives investment advice to the public.

Financial Statements - include the Statement of Financial Position (the balance sheet), Statement of Earnings (the profit and loss), Cash Flow Reporting, Notes to the Accounts, Statement of Accounting Policies, and the Audit Report.

Fittings - Items that can be removed from a property without causing damage to it.

fitts - fittings

Fixed Expenses - are those expenses which are usually fixed in amount and frequency. For example, your rent will be the same amount each time and will be due on a regular basis, such as each fortnight. Other examples might include loan repayments and insurances.

Fixed Interest Investments - are investments in funds or accounts that have both a set term and interest rate. It's recommended that you invest over a range of terms, to minimise the influence of interest rate movements.

Fixed Rate - is an interest rate fixed for a period of time.

Fixed Rate Mortgage - A mortgage with which the interest rate is contracted not to change during the term of the loan.

Fixtures - Fixed items within the property that cannot be removed without damaging either the property or the fixture itself.

fl covs - floor coverings

Floating Rate - is an interest rate that moves up or down, according to market interest rates.

flr - floor

Foreclosure - The legal procedure by which a borrower who defaults on the mortgage, due to failing to comply with the mortgage contract, loses their rights to the interest of the mortgaged property. This usually results in the mortgagee selling the property, with the monies going towards the servicing of the mortgage debt.

Freehold - A title in which the property continues for an indefinite period of time.

functional utility - The ability of a property or building to be useful and to perform the function for which it is intended according to market tastes and standards; the efficiency of a building's use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms.

Fund and Fund Manager Ratings - are those ratings given by Fundsource and Morningstar to assess the quality of a fund or its manager. When reviewing ratings, check the accompanying information, to help you understand exactly what is being rated and what the ratings mean.