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AAPR
Comparison interest rate, taking into account all the costs associated with the loan and is used to compare loan products.
Caveat
Warning to a purchaser that a third party has some right or interest in the property.
Contract
The fine print in the contracts is different from state to state. The process also differs from state to state e.g. in some states the contract is physically “exchanged” and in others a single contract is signed by both parties. The cooling off period also differs from state to state.
Cooling Off
There is a 5-business day cooling off period unless you have bought at an auction or you have waived the right to the cooling off period. You need to obtain legal advice regarding the benefits and also the obligations in waiving the cooling off period. The cooling off period follows the exchange of contracts allowing time for searches, obtaining reports and confirming finance. If you do not continue with the sale, you will forfeit 0.25% of the purchase price from the deposit you have paid. Discuss with your legal adviser your rights and obligations during the cooling off period.
Covenant
Terms, conditions and restrictions noted on a property’s certificate of title . The covenant may affect future development plans or re-sale.
Cross Securitisation
When the financial institution uses your property (whether owner-occupied or investment) as security for another property you wish to purchase.
Exchange of Contract
The contract sets out the terms and conditions of the sale including the fittings such as blinds, curtains etc and any items excluded from the sale. The solicitor or conveyancer will examine the contract carefully. There are two copies of the Contract for Sale – one for you and one for the seller. You each sign one copy before they are swapped or “exchanged” and the deposit is handed over. Only when both the seller and the buyer have signed the contract and exchanged copies do you both become bound by the contract. The contract will stipulate the deposit amount and who will hold it. Once all parties have signed a contract it cannot be altered or changed. However, there may be unforeseen changes of circumstance which affect either party to a contract between signing and settlement that may require a change to be made to the contract. Provided all parties agree, changes can be made.
LVR
The Loan to Valuation Ratio (LVR) refers to the ratio between the size of your loan and the value of your security property. It is calculated by dividing your loan size by the value of your security property e.g. loan size $240,000, property value $300,000, LVR = 80%.
Memorandum of Transfer
The document that verifies the change in ownership from the seller to the buyer.
Property Cycle
Property values usually follow a cycle of growth, a slowdown, a bust and an upturn. History shows this occurs every 7 to 10 years.
Quartile – Lower
The price point below which 25% of sales were recorded. For example, If there were 100 sales in a suburb, it is the lowest 25 house prices.
Quartile – Upper
The price point below which 75% of sales were recorded. If there were 100 sales in a suburb, it is the highest 25 highest house prices.
Tenants in Common
In the case of tenancy in common, although each has an undivided share, such share is distinct and separate. The interests need not be equal; thus ‘A’ may have one undivided third share, and ‘B’ two undivided third shares of the same property. The most important feature is that the share of a tenant-in -common may be separately disposed of during a person’s lifetime, or by will. On death it passes, not to the other tenants-in-common, but by will, or by the laws of intestacy.
Tenants – Joint
Joint tenancy is ownership in equal undivided shares. The most important feature of joint tenancy is known as survivorship; on the death of one joint tenant, that person’s share passes to the survivors so that they remain joint tenants of the whole. Joint tenants are regarded collectively as a single person in respect of their dealings with others.
Vacancy Rates – Sydney
| Sydney | JAN 11 | FEB 11 | MAR 11 | APR 11 | MAY 11 | JUN 11 | JUL 11 | AUG 11 | SEP 11 | OCT 11 | NOV 11 | DEC 11 | JAN 12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inner | 1.2% | 1.2% | 1.1% | 0.9% | 1.1% | 1.4% | 1.5% | 1.5% | 1.5% | 1.3% | 1.2% | 1.5% | 1.7% |
| Middle | 1.9% | 1.2% | 1.1% | 1.4% | 1.5% | 1.3% | 1.5% | 1.6% | 1.4% | 1.6% | 1.7% | 2.0% | 2.1% |
| Outer | 1.4% | 1.1% | 1.2% | 1.4% | 1.5% | 1.7% | 1.6% | 1.3% | 1.3% | 1.4% | 1.3% | 1.4% | 1.8% |
| Total | 1.5% | 1.1% | 1.1% | 1.2% | 1.4% | 1.5% | 1.5% | 1.5% | 1.4% | 1.4% | 1.4% | 1.6% | 1.9% |
Inner = 0-10 km, Middle = 10-25 km, Outer = > 25 km
Vacancy rates – SEQ
| S.E.Q. | DEC 10 | MAR 11 | JUN 11 | SEP 11 | DEC 11 |
|---|---|---|---|---|---|
| Inner Brisbane | 3.0% | 3.0% | 2.2% | 2.8% | 2.7% |
| Rest of Brisbane | 3.8% | 3.1% | 2.6% | 3.2% | 3.3% |
| Brisbane Surrounds | 4.8% | 3.3% | 4.3% | 3.8% | 3.8% |
| Gold Coast | 4.7% | 4.2% | 5.5% | 4.8% | 5.1% |
Inner Brisbane = <5 km from GPO
Rest of Brisbane = >5 km from GPO within Brisbane City Council
Brisbane Surrounds = Moreton Bay Regional Council and Logan, Redland and Ipswich City Councils
Contact us if the above explanations do not answer your specific query.
