Property Investment Glossary

Property Investment Glossary

A plain-English guide to the terms you will hear when buying, selling or investing in property in Brisbane and Queensland.

Settlement

The final stage of a property transaction when the buyer pays the balance of the purchase price and takes legal ownership of the property.

Due Diligence

The process of investigating a property or business before purchase to confirm value and identify risks. This can include contract review, financial analysis, building inspections and title searches.

Yield

The annual rental income from an investment property expressed as a percentage of the property’s value. For example, a $600,000 property earning $30,000 rent per year has a 5% gross yield.

Capital Growth

The increase in the value of a property over time. It is one of the two main ways property investors make returns, along with rental income.

LRBA (Limited Recourse Borrowing Arrangement)

A loan structure that allows a self-managed super fund to borrow money to buy a single asset, such as residential property. The lender’s recourse is limited to the asset purchased.

SMSF (Self-Managed Super Fund)

A private superannuation fund regulated by the ATO that gives members control over their investment strategy, including the ability to invest in residential property under strict rules.

House and Land Package

A bundled purchase of vacant land and a new home build, usually in a new estate. The buyer selects the land and builder, and construction begins after settlement on the land.

Fixed-Price Building Contract

A construction contract where the total price is agreed upfront, protecting the buyer from unexpected cost increases during the build.

Stamp Duty

A state government tax paid when purchasing property. In Queensland, first-home buyers may be eligible for concessional rates or exemptions.

First Home Owner Grant (FHOG)

A Queensland government payment for eligible first-home buyers who purchase or build a new home. Conditions apply regarding property value and whether it will be owner-occupied.

Body Corporate

The administrative body that manages common property in apartment buildings, townhouses or gated communities. Owners pay levies for maintenance, insurance and shared facilities.

Rental Vacancy Rate

The percentage of rental properties in an area that are currently unoccupied. A low vacancy rate usually indicates strong rental demand.

Forensic Accounting

Financial investigation used to detect fraud, quantify losses, analyse disputes and produce evidence for legal or insurance proceedings.

Business Valuation

An independent assessment of what a business is worth, based on financial performance, assets, market position and future earnings potential.

Confidential Information Memorandum

A document prepared when selling a business that provides financial and operational details to qualified potential buyers without revealing the business identity publicly.

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