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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mais - maisonette

Managed Fund - is a fund in which money is pooled and managed by a professional investor. There are a number of different types of funds, including unit trusts, insurance bonds and superannuation schemes.

Management Expense Ratio - Management Expense Ratio - MER In simple terms an MER is a way of taking the expenses involved in investing through a manager and wrapping them up in one figure, making it easier to see how much you're paying and simpler to compare funds. The term applies to investments such as unit trusts, investment-linked insurance policies and superannuation schemes (but not workplace super) - the sort of things you buy and sell through a manager, rather than on the sharemarket. Managers express MERs as a percentage - of the value of your investment, not the amount you originally put in. So, if a fund's MER is 1.5 per cent and your stake in that fund is worth $10,000, you know that management is costing you $150 a year.

Marginal Tax Rate - refers to your highest tax rate.

market rent - The rental income that a property would most probably command in the open market; indicated by the current rents paid and asked for comparable space as of the date of the appraisal.

MER - Management Expense Ratio - MER In simple terms an MER is a way of taking the expenses involved in investing through a manager and wrapping them up in one figure, making it easier to see how much you're paying and simpler to compare funds. The term applies to investments such as unit trusts, investment-linked insurance policies and superannuation schemes (but not workplace super) - the sort of things you buy and sell through a manager, rather than on the sharemarket. Managers express MERs as a percentage - of the value of your investment, not the amount you originally put in. So, if a fund's MER is 1.5 per cent and your stake in that fund is worth $10,000, you know that management is costing you $150 a year.

mod - modern

Money Management - the regular updating and control of your budget.

Money Shape - your current financial profile. This includes your assets, debt, and, importantly, your investment and savings horizon. .

Mortgage - A legal document that provides a property security to a lender and held against payment of a debt.

mortgage constant - The capitalization rate for debt; the ratio of the annual debt service to the principal amount of the mortgage loan.

Mortgage Discharge Fee - A fee charged by lending institutions for repayment of a loan.

Mortgage Insurance - A policy that insures the lender against the borrower defaulting on a loan. Usually required if the LVR is above 80%.

Mortgagee - The lender in a mortgage agreement.

Mortgagor - The borrower in a mortgage agreement.

mstr - master

mtge - mortgage

Multi Listing - A style of listing agreement for a property in which more than one real estate agent may be employed to sell the property. The owner pays a commission only to the agent who finds the buyer.