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Glossary

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Select Glossary Index

    a

    An accretive acquisition is a type of corporate transaction in which the acquiring company's earnings per share (EPS) increase as a result of the acquisition. This occurs when the earnings of the acquired company are greater than the cost of the acquisition.
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    The term "accumulate" is used in the context of property investment to mean to gradually increase your holdings of property over time. This can be done by buying one property at a time, or by buying multiple properties at once. The goal of accumulating property is to build up a portfolio of properties that will generate income and appreciate in value over time.
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    The term acquisition refers to the process of buying or obtaining something, especially a business or property. In the context of CoreProp.com.au, an acquisition is typically a large-scale deal involving multiple parties.  Acquisitions can be motivated by a variety of factors, such as growth, diversification, or strategic positioning.
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    The term "aggregate" refers to a collection of data that has been combined into a single unit. This data can be from a variety of sources, such as property listings, financial data, or customer surveys. Aggregate data can be used to gain insights into trends, identify patterns, and make predictions.
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    The term acquisition can refer to the process of buying or obtaining something, such as a property. For example, a real estate company might acquire a new property by buying it from a seller.
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    A-REITs, or Australian Real Estate Investment Trusts, are a type of investment that allows investors to buy shares in a company that owns and operates income-producing real estate. A-REITs are listed on the Australian Stock Exchange (ASX), and they offer a number of advantages over direct property investment.
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    ASIC stands for Australian Securities and Investments Commission. It is an independent Australian government body that regulates financial services, markets, and corporations. ASIC's role is to protect consumers, investors, and the community from financial fraud, misconduct, and market abuse.
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    An asset is something that has value and can be used to produce income or profit. In the context of CoreProp, an asset could be a property, a piece of equipment, or even a brand name. Assets are important because they can help a company generate revenue and grow.
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    The term asset class refers to a broad category of investments that share similar characteristics and are expected to behave similarly in the market. For example, property, shares, bonds, and cash are all asset classes.
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    Asset management in relation to Core Property is the process of managing and investing in property assets on behalf of clients. Core Property provides market-leading research, analysis, and ratings from its specialist team across property, financial services, and investment markets. The company's asset management services include:
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    Average gearing is the average amount of debt that property investors in Australia have relative to their equity. It is calculated by dividing the total amount of debt by the total amount of equity. The average gearing in Australia is currently around 60%, which means that for every $100 of equity that an investor has, they have $60 of debt.
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    b

    A balance sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time. It is a snapshot of a company's financial health, and can be used to track its performance over time. In relation to property investment, a balance sheet can be used to: Track the value of your property portfolio: The balance sheet will show the current value of your properties, as well as the amount of debt you have against them.
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    Bonds are a type of investment that can be used to generate income and grow wealth over time. They are essentially loans that investors make to companies or governments, in return for a fixed interest payment (coupon) over a set period of time (maturity). At maturity, the bondholder is repaid the original amount of the loan (principal).
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    The term "borrowings" refers to the practice of taking on debt, typically in the form of loans or mortgages, in order to finance the purchase of assets. In the context of CoreProp, borrowings are used to fund the acquisition and development of commercial real estate properties.
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    The term "buy" refers to the act of purchasing a property fund. Property funds are investment vehicles that allow investors to pool their money together to invest in a diversified portfolio of real estate assets. This can be a more cost-effective and efficient way to invest in property than buying individual properties.
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    c

    CAPEX stands for Capital Expenditure. It is a term used to describe the money that a company spends on long-term assets, such as property, plant, and equipment. CAPEX is an important part of a company's financial statements, as it can help investors to understand how the company is investing in its future.
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    In the context of CoreProp, capital refers to the financial resources that a company or individual has available to them. This includes cash, investments, and other assets that can be used to generate income or growth. CoreProp helps clients to manage their capital effectively by providing financial planning advice, investment management services, and other financial solutions.
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    Capitalisation refers to the process of raising funds for a property fund. This can be done through a number of methods, including issuing shares, taking on debt, or a combination of both. The amount of capital that a property fund needs to raise will depend on a number of factors, including the size and type of the fund, as well as the investment objectives of the fund manager.
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    Capitalisation rates (also known as cap rates) are a measure of the income return on an investment property. It is calculated by dividing the property's net operating income (NOI) by its current market value. A higher cap rate indicates a lower property value, while a lower cap rate indicates a higher property value.
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    CIP stands for Centuria Industrial Property Fund. It is an Australian real estate investment trust (REIT) that invests in industrial properties. The fund was established in 2012 and is listed on the Australian Securities Exchange (ASX). The fund's objective is to provide investors with a high level of income and capital growth through its investment in high-quality industrial properties.
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    Conveyancing in Australian English is the process of transferring ownership of a property from one person to another. Conveyancing can be a complex process, and it is important to have a qualified conveyancer to help you through the process. A conveyancer will be able to explain the process to you, and they will be able to ensure that all of the necessary steps are taken.
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    A covenant is a legally binding agreement between two or more parties. In the context of property, covenants are often used to restrict the use of land or buildings. For example, a covenant might restrict the height of buildings in a particular area, or it might prohibit the use of land for commercial purposes.
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    Core Property Services is a property management consulting company that provides a range of services to real estate agents and agencies across Australia. 
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    d

    In the context of CoreProp, debt can refer to the amount of money that a property developer owes to a lender, such as a bank or a financial institution. Debt is an important factor to consider when investing in property. Property developers with high levels of debt may be more likely to default on their loans, which could lead to financial losses for investors.
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    Debt hedging is the practice of using financial instruments to protect against the risk of changes in interest rates or foreign exchange rates. Debt hedging can be a useful tool for businesses to manage their financial risk. However, it is important to note that hedging can also increase costs. Businesses should carefully consider the potential benefits and costs of hedging before entering into any financial contracts.
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    Debt level is a measure of the total amount of debt that a person or business owes, relative to their income or assets. It is calculated by dividing the total debt by the person's or business's income or assets. A high debt level can be a sign of financial difficulty, as it can make it difficult to make debt repayments and can lead to bankruptcy.
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    Debt maturity refers to the date on which a loan or other debt obligation must be repaid in full. This date is typically specified in the loan agreement or other documentation governing the debt. Debt maturity is an important consideration for borrowers, as it can impact their cash flow and financial planning.
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    The term "distribution" can be used to refer to the process of delivering goods or services to customers. In the context of CoreProp, distribution refers to the process of delivering real estate products and services to clients. This includes the marketing and sale of properties, the management of property portfolios, and the provision of valuations and other advisory services.
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    "Distribution Per Unit" refers to the amount of rent or income generated by a property divided by the number of units in the property. This metric is used to compare the profitability of different properties and to assess the potential return on investment for a property investment.
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    A diversified portfolio is one that invests in a variety of asset classes, including property, shares, and fixed interest. This helps to reduce risk and improve the chances of achieving long-term investment goals. CoreProp offers a range of diversified portfolios that are tailored to different risk profiles and investment objectives.
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    A dividend is a distribution of profits by a company to its shareholders. Dividends are typically paid out quarterly, but they can also be paid out monthly or annually. The amount of the dividend is determined by the company's board of directors, and it is usually based on the company's earnings. Shareholders can choose to receive their dividends in cash or in additional shares of stock.
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    e

    Expenditure refers to the amount of money that is spent on something. In the context of CoreProp, expenditure can refer to the amount of money that is spent on property investment, such as the purchase price of a property, stamp duty, legal fees, and other associated costs.
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    f

    A Financial Services Guide (FSG) is a document that must be provided by financial services providers to retail clients when providing financial advice or other financial services. The FSG must include information about the financial services provider, the financial services being offered, the fees charged, and how complaints will be handled.
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    The word "forecast" can be used to refer to a prediction of future events or trends. In the context of CoreProp, a forecast is a prediction of future property prices. CoreProp uses a variety of factors to make its forecasts, including historical data, economic conditions, and market sentiment.
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    Freehold means that you own the property outright, including the land and any buildings on it. This is in contrast to leasehold, where you only own the right to occupy the property for a specified period of time. Freehold properties are generally considered to be more desirable than leasehold properties, as they offer greater security and flexibility.
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    The term "fund" can be used to refer to a variety of things.
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    Fund manager is an investment professional who is responsible for the investment strategy and management of a fund. Funds can be open-ended or closed-ended, and they can invest in a variety of assets, including equities, bonds, and property. Fund managers typically charge a fee for their services, which is paid by the fund's investors.
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    Funds From Operation (FFO) is a measure of a real estate investment trust's (REIT) profitability. It is calculated by adding depreciation, amortization, and gains on sales of real estate to net income and then subtracting interest expense and gains on sales of investments.
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    Funds from operations (FFO) is a measure of the cash flow generated by a real estate investment trust (REIT) or a property management company. It is calculated by adding depreciation and amortization to net income, and then subtracting any gains or losses on the sale of assets.


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    Funds under Management (FUM) is a measure of the total value of assets that a fund manager or property management company has under their control. It is calculated by adding up the value of all of the properties or portfolios that the fund manager or property management company manages.
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    g

    Gearing %, also known as leverage, is a measure of the amount of debt that is used to finance an investment. It is calculated by dividing the amount of debt by the total value of the investment. For example, if an investor borrows $100,000 to buy a property worth $200,000, their gearing % would be 50%. Gearing % is an important metric for investors to consider when evaluating an investment. It can give you an indication of the risk of the investment.
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    Gross Lettable Area (GLA) is the total floor area of a property that is available to be rented out to tenants. It is calculated by measuring the entire interior space of a property, including all common areas, such as hallways, stairwells, and lifts.
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    h

    Hedging is a financial strategy that is used to reduce risk. In the context of property investment, hedging can be used to protect against losses in the value of property. Hedging can be a useful tool for property investors, but it is important to note that it does not eliminate all risk. Hedging can only reduce risk, it cannot eliminate it entirely.
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    To purchase a property with the intention of keeping it for the long term. This is in contrast to "trading" or "flipping", which are strategies that involve buying and selling properties in a shorter timeframe. There are a number of reasons why investors might choose to hold a property for the long term.
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    i

    In the context of property research, IASB stands for International Accounting Standards Board. It is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs). IFRSs are a set of accounting standards that are used by companies all over the world to prepare their financial statements.
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    In the context of property research, IFRS stands for International Financial Reporting Standards. They are a set of accounting standards that are used by companies all over the world to prepare their financial statements. IFRSs are designed to provide investors, lenders, and other stakeholders with a consistent and transparent view of a company's financial performance.


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    In the context of property research, an illiquid investment is an asset that cannot be easily converted into cash. This means that it can be difficult to sell the asset quickly and at a fair price. Illiquid investments can be a good option for investors who are looking for long-term growth, as they are not as susceptible to short-term market fluctuations.


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    An incentive is a reward or benefit offered to encourage someone to do something. In the context of CoreProp, incentives can be offered to landlords, tenants, or both. For example, landlords may be offered incentives such as rent-free periods or marketing support.
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    Income is defined as the money that a person or organization receives on a regular basis, typically from employment, investments, or business. In the context of CoreProp, income is the amount of money that a property generates, either through rent or through the sale of the property. CoreProp uses income to calculate the value of a property, as well as to determine the amount of debt that can be secured against the property.
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    An Information Memorandum (IM) is a confidential document that provides detailed information about a property investment opportunity to potential investors. It typically includes information such as the property's location, size, condition, rental history, and projected returns. The IM is used by CoreProp and other real estate investment firms to market their investment opportunities to accredited investors.
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    "insolvency-remote" refers to a company or entity that is structured in such a way that its bankruptcy or insolvency would have minimal impact on other companies or entities within the same corporate group. This is typically achieved by creating a separate legal entity that is specifically designed to hold assets and liabilities related to a particular project or investment.
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    An instalment is a payment made on a loan or other debt in regular amounts over a period of time. For example, if you buy a car on finance, you will typically make monthly instalments until the loan is repaid in full. The term "instalment" is also used to refer to a single part of a larger work, such as a novel or a series of payments.
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    The term refers to a financial interest in a property. This could be in the form of a mortgage, a lease, or another type of debt or agreement. CoreProp specializes in managing these types of interests, and their team of experts can help you with everything from finding a property to managing your mortgage.
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    Interest Cost Ratio (ICR) is a measure of the cost of borrowing money to finance an investment property. It is calculated by dividing the annual interest payments on the loan by the gross rent received from the property. A higher ICR indicates that a larger portion of the rent is going towards paying interest, leaving less money for the investor to cover other expenses, such as property taxes, insurance, and maintenance.
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    Interest rate is the cost of borrowing money. It is usually expressed as a percentage of the amount borrowed, and is paid to the lender over time. Interest rates can be fixed or variable, and are typically set by banks and other financial institutions.
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    Internal Rate of Return (IRR) is a measure of the profitability of an investment. It is calculated by finding the discount rate that makes the net present value of all future cash flows from the investment equal to zero. A higher IRR indicates a more profitable investment.
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    The term "investment" can be defined as the act of putting money or other resources into something with the expectation of profit or some other benefit. In the context of CoreProp, an investment could be anything from buying a property to investing in a managed fund.
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    An investment bond is a type of life insurance policy that allows you to invest your money in a variety of assets, such as shares, property, and cash. Investment bonds offer a number of advantages over other types of investments.
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    An individual or entity that invests money in assets with the expectation of generating a return on their investment. In the context of CoreProp, an investor is someone who invests in property assets. CoreProp provides a range of services to investors, including property sourcing, property management, and property financing.
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    l

    Leasing is a process whereby a landlord (or lessor) grants the right to use a property to a tenant (or lessee) for a specified period of time in return for rent. The lease agreement will set out the terms and conditions of the lease, including the rent, the duration of the lease, and the rights and responsibilities of both the landlord and the tenant.
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    In the context of CoreProp, leveraged refers to a property investment strategy that uses borrowed money to purchase a property. This can increase the potential return on investment, but it also increases the risk of financial loss if the property value declines.
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    Loan to value ratio (LVR) is a measure of how much of a property's purchase price is being financed with a loan. It is calculated by dividing the amount of the loan by the property's purchase price. LVR is an important factor that lenders consider when assessing a borrower's risk. Lenders typically prefer to lend to borrowers with a lower LVR, as this indicates that the borrower has a greater equity stake in the property.
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    A loss occurs when the total cost of owning a property exceeds the total income generated by the property.
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    m

    Moving annual turnover (MAT) is a measure of the average turnover generated by a property over a period of time. It is calculated by taking the total turnover generated by a property over a period of time and dividing it by the number of months in that period.
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    n

    Negative gearing is a tax strategy used by property investors to offset their losses against other income, such as salary or wages. This can help to reduce their taxable income and their tax liability. Negative gearing occurs when the total cost of owning a property, including mortgage interest, rates, taxes, maintenance and repairs, and vacancy costs, exceeds the total income generated by the property.
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    Net interest expense is the total interest expense incurred by a property investor, less any interest income earned. It is calculated by taking the total interest expense and subtracting any interest income. Net interest expense is an important financial metric for property investors because it can help to assess the profitability of a property investment.
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    NTA stands for Net Tangible Assets. It is a measure of the value of a property after deducting all liabilities, such as mortgages and loans. NTA can be used to assess the financial health of a property investment and to make investment decisions.
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    o

    Occupancy level is the percentage of time that a property is rented out. It is a measure of how well a property is performing as an investment. A higher occupancy level indicates that a property is more attractive to tenants, which can lead to higher rental income.
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    Occupancy rate is the percentage of time that a property is rented out. It is a measure of how well a property is performing as an investment. A higher occupancy rate indicates that a property is more attractive to tenants, which can lead to higher rental income.
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    p

    Payout ratio is the percentage of a property's net income that is paid out to investors in the form of dividends. It is calculated by dividing the total dividends paid out by the property's net income. A higher payout ratio indicates that investors are receiving a larger portion of the property's profits, which can be attractive to investors who are looking for income.
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    In the context of property research, a portfolio is a collection of real estate investments. It can be used to diversify an investor's risk and to achieve their investment goals.
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    Portfolio reweighting is the process of adjusting the weightings of different asset classes within a property portfolio. This can be done to achieve a number of objectives, such as maintaining the portfolio's risk profile, improving the portfolio's performance, or meeting the investor's investment goals.
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    Positive gearing is a property investment strategy where the rental income from a property exceeds the costs of owning and maintaining it. This means that the investor makes a profit from the property each year, even after accounting for all of the expenses.


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    Profit is the financial gain that an investor makes from a property investment. It is calculated by subtracting the costs of owning and maintaining the property from the rental income.


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    In the context of property research, a property disposal fee is a fee that is charged by a real estate agent when a property is sold. The fee is typically a percentage of the sale price of the property, and it is used to cover the agent's marketing and administrative costs.


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    A property disposal fee is a fee that is charged by a real estate agent when a property is sold. The fee is typically a percentage of the sale price of the property, and it is used to cover the agent's marketing and administrative costs. Property disposal fees are a common practice in the real estate industry, and they are typically paid by the seller of the property.
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    Property income is the income that is generated from a property investment. It can come from a variety of sources, such as rent, capital gains, and other income streams. Property income can be a valuable source of income for investors. It can also be used to offset the costs of owning a property, such as mortgage payments, property taxes, and maintenance costs.


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    The property sector is a broad term that refers to all aspects of the real estate industry. It includes residential properties, commercial properties, and industrial properties. The property market is constantly changing, and it is affected by a variety of factors, such as economic conditions, interest rates, and government policy.
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    Property valuation is the process of estimating the value of a property. It is used for a variety of purposes, such as buying, selling, or lending money against a property. The value of a property can vary depending on a number of factors, such as the location of the property, the size of the property, the condition of the property, and the demand for properties in the area.
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    r

    The Reserve Bank of Australia (RBA) is the central bank of Australia. It is responsible for setting monetary policy, which is the interest rates that banks charge each other for loans. The RBA's monetary policy decisions can have a significant impact on the property market.
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    Reduce can mean to make something smaller or less in size, amount, or degree. It can also mean to lessen or diminish something. Reduce is an important word to know in the context of property research. By understanding how to use it, you can better understand the different factors that can affect the value of a property and the risk of an investment.


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    Reinvestment means to put money back into an investment. This can be done to increase the value of the investment, to generate more income, or to reduce the risk of the investment. Reinvestment can be a good way to grow an investment portfolio.
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    Revaluation is the process of reassessing the value of an asset. This can be done for a number of reasons, such as to reflect changes in market conditions or to update the asset's value for accounting purposes. Revaluation can be a positive or negative thing for property investors. If the value of a property increases, the investor's wealth will increase. However, if the value of a property decreases, the investor's wealth will decrease.


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    s

    A sector is a broad category of property that is defined by its use or location. For example, the residential sector includes houses, apartments, and townhouses. The commercial sector includes office buildings, retail spaces, and industrial properties.


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    Means to transfer ownership of a property to another person. This can be done through a real estate agent or directly between the buyer and seller. There are a number of factors that can affect the selling price of a property, such as the location of the property, the size of the property, the condition of the property, and the demand for properties in the area.


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    Social infrastructure refers to the buildings and services that support the social and economic well-being of a community. This includes things like schools, hospitals, libraries, parks, and community centers. Social infrastructure is important to consider when doing property research because it can have a significant impact on the value of a property.


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    Statutory means something that is required by law. In the context of property research, statutory refers to laws that govern the ownership, sale, and development of property. Statutory requirements can vary from state to state in Australia, so it is important to be aware of the specific requirements in the state where you are investing.


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    Statutory gain is a term used to describe the profit that is made from the sale of a property that has been held for more than 12 months. The statutory gain is calculated by subtracting the purchase price of the property from the sale price of the property.


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    Statutory loss is a term used to describe the loss that is made from the sale of a property that has been held for more than 12 months. The statutory loss is calculated by subtracting the sale price of the property from the purchase price of the property.


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    Stock can refer to a number of different things in the context of property research. It can refer to:

    • The number of properties that are available for sale in a particular market.
    • The number of properties that are owned by a particular investor or company.
    • The units of ownership in a property trust or company.

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    Sub-regional refers to an area within a region that has its own unique characteristics. For example, a sub-region might be defined by its proximity to a major city, its population density, or its economic activity. Sub-regional analysis is an important part of property research because it can help investors to identify areas that are likely to be more attractive to buyers or tenants.


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    t

    Trading refers to the buying and selling of properties for profit. It is a type of investment activity that can be done by individuals or companies.


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    A transaction is an exchange of goods, services, or money between two parties. In the context of property research, a transaction refers to the purchase or sale of a property. Transactions can be complex, and there are a number of different factors that need to be considered.
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    u

    Unleveraged means that a property is not financed with debt. This means that the investor has paid for the property in full with their own money. Unleveraged investments are generally considered to be less risky than leveraged investments because the investor does not have to worry about repaying debt if the value of the property decreases. However, unleveraged investments also have the potential to generate lower returns because the investor does not have the benefit of using borrowed money to magnify their investment.


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    An unlisted fund is a type of investment fund that is not traded on a stock exchange. This means that investors cannot buy or sell units in the fund through a broker. Instead, investors must apply to invest in the fund directly with the fund manager. Unlisted funds are often used to invest in illiquid assets, such as property. This is because illiquid assets are not easily traded on a stock exchange, so they are not as accessible to individual investors.


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    Unlocking value means to increase the value of a property. This can be done through a number of different methods. Unlocking value can be a good way to increase the return on investment for property owners. However, it is important to carefully consider the costs and benefits of any proposed improvements before making a decision.
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    v

    Valuation is the process of determining the current market value of a property. This is done by a qualified valuer, who will consider a number of factors, including the property's location, size, condition, and recent sales of comparable properties.
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    Valuation movement is the change in the market value of a property over time. This can be caused by a number of factors, such as changes in interest rates, economic conditions, or the supply and demand for property in a particular area.
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    A valuation write-down is a reduction in the value of an asset that is recorded on a company's balance sheet. This can happen when the market value of an asset falls below its carrying value.


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    w

    "WALE" stands for Weighted Average Lease Expiry. WALE is a commonly used metric in the commercial real estate industry, particularly when assessing the stability and income potential of a property investment.


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    y

    Yield is a measure of the income that an investment property generates. It is calculated as a percentage of the property's value, and it is expressed as a percentage. Yield is an important factor to consider when evaluating an investment property. A higher yield indicates that the property is generating more income, which can lead to a higher return on investment.
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