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.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Negative Gearing - Where the income of an investment is not sufficient to cover the costs with maintaining that investment. This is the opposite of Positive Gearing.
Net Assets - when referring to managed funds, measures the market valuation of investments, less any liabilities.
Net Income - Income after taxes are deducted.
net lease - A lease in which the tenant pays all property operating expenses in addition to the stipulated rent.
net operating income - The actual or anticipated net income that remains after all operating expenses are deducted from effective gross income, but before mortgage debt service and book depreciation are deducted.
Net Worth - The value of a person’s assets minus liabilities.
nominal interest rate - A stated or contract rate; an interest rate, usually annual, that does not necessarily correspond to the true or effective rate of growth at compound interest.
Notice of Default - A formal legally written notice to a borrower that a default has occurred and that rectification of this issue is needed or that legal action may be taken.
Notice to Quit - The notice to a tenant to vacate the property.
nvestment Property - A property that the owners lease to try and produce an income stream.