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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l'fitt - light fittings

land residual technique - A capitalization technique in which the net operating income attributable to the land is isolated and capitalized to indicate the land's contribution to total property value.

Land Tax - A State tax which is based on the Valuer Generals value of the unimproved value of a property that is to be paid by the owner.

land to building ratio - The proportion of land area to gross building area.

Landlord - A person who owns and rents property to another to live in or use within contractual agreements.

ldr - lounge dining room

ldry - laundry

lease - A written document in which the rights to use and occupy land or structures are transferred by the owner to another for a specified period of time in return for a specified rent.

Lease - A contractual agreement between a landlord and a tenant providing a period of occupancy of a property to a tenant within specific terms and conditions.

leased fee estate - An ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others.

Leasehold - The legal right to use and maintain possession (but not ownership) of a property for a specified period of time and subject to the fulfilment of certain conditions contained within the lease agreement.

leasehold estate - The interest held by the lessee (the tenant or renter) through a lease conveying the rights of use and occupancy for a stated term under certain conditions.

Lessee - Same as Landlord

Lessor - Is a payment made to a person or entity for the referral of a customer or business. Usually a kickback is made without the customer's knowledge.

Leverage - describes using some means, such as a loan, to create a different and stronger result from your investment. While leverage can bring about a positive result, faster and greater, the reverse is also true; leverage can exaggerate the speed and magnitude of a loss.

lge - large

Liabilities - The debts/monies owed by an entity to another.

Liquid Asset - An asset that can be converted into cash readily.

Liquidity - refers to how strong or robust the market is for selling your investments. When the time comes to cash in your investments, whether tomorrow or in ten years' time, you want to be able to sell your investments at the best possible price and at the time you choose. The liquidity of investments differs, and it's important to understand the liquidity of an investment before committing to it. For example, it's generally easier to sell shares in a property company, than it is to sell a residential property investment. Where appropriate, we've included a special reference to the liquidity issues for several investment options

liv - living

lnge - lounge

Loan - An amount borrowed money that is borrowed from another entity and usually repaid with interest.

Loan Application Fee - An amount of money paid as a fee to a lender for processing a loan.

Loan to Value Ratio (LVR) - describes the percentage of the value of a property that an institution will loan up to.

lu - lock-up

lug - lock-up garage