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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incurable functional obsolescence - An element of accrued depreciation; a defect caused by a deficiency or superadequacy in the structure, materials, or design, which cannot be practically or economically corrected.

incurable physical deterioration - An element of accrued depreciation; a defect caused by physical deterioration that cannot be practically or economically corrected.

Inflation - is the general increase in the price of goods and services. In New Zealand, it's measured by changes in the consumer price index (CPI).

Inflation Risk - is the risk that the value of your savings may be eroded by inflation. For longer-term investments, you should always ensure that the return on your investments is keeping pace with, or is higher than, the expected rate of inflation

ingr pl - inground pool

insurable value - 1) The portion of the value of an asset or asset group that is acknowledged or recognized under the provisions of an applicable loss insurance policy. 2) Valued used by insurance companies as the basis for insurance .

int - internal

Interest - The fee a mortgagee charges for borrowing money.

Interest Only Loan - is a loan for which you only pay interest. No capital repayment is made until the last repayment, when the full balance outstanding is repaid.

Interest Only Loan - A mortgage where only the interest component is repaid during the course of the loan, of which is variable.

Interest Rate - The rate of interest a mortgagee charges on any monies owed on a mortgage for the monthly payment.

interim use - The temporary use to which a site or improved property is put until it is ready to be put to its future highest and best use.

Intermediary - is a term synonymous with financial intermediary, and normally refers to the person selling an investment on behalf of a financial institution.

internal rate of return - The annualized yield rate of return or rate of return on capital that is generated or capable of being generated within an investment or portfolio over a period of ownership.

Intestate - refers to the situation when an individual dies without leaving a valid will.

intl - internal

Investing - the task of moving your savings into a variety of investment options.

Investment adviser - is a role synonymous with a financial adviser, and essentially covers any person - from an accountant to a real estate agent - who gives investment advice to the public.

Investment Behaviour - refers your investment decisions. Good investment behaviour means that your investment decisions have been made with consideration, based on your personal money shape and, importantly, your savings and investment horizon.

Investment Income - is one form of return from an investment. The other form of return is capital growth. Investment income comes in different forms. If you invest directly, it can take the form of interest (from cash and fixed interest investments), rental income (from property), or dividends (from shares). If you invest indirectly - for example through unit trusts - investment income can be known as distributions, and can take a combination of different forms, depending on the underlying investments

Investment Statement - is a document which must be given to a potential investor of managed funds before they invest. It contains information about the investment, such as charges and risks. It's a good starting point in understanding a potential investment.

Investment Vehicle - is a generic name to describe any method of investment. A term deposit and property syndicate are two examples of investment vehicles.