Acronym, glossary, abbreviation & TLA FAQ

[muppet]

Hi Guys

Another Post from Somersoft put up by Jas. It is geared towards the Australian Property Investing situation.
Please add to the list.

Acronym, glossary, abbreviation & TLA FAQ

Introduction
Every community has its own language. To people new to that group, words are thrown around that have no meaning. Without understanding these words, whole concepts fly past without making any impression.

Confusing matters further, this community is threefold. We use a lot of Internet specific words. We also use a lot of property specific words. Finally, there are a lot of specialists in our group. This means specific computer/airline/economic/finance words are used as well.

Adding to this mix, lastly we abbreviate them. It’s a wonder that we understand one another at all!


Organisations/People
QS: Quantity Surveyor
PM: Property Manager
REA: Real Estate Agent
BA: Buyers Agent

ASIC: Australian Securities and Investment Commission
ATO: Australian Tax Office
DFT: Department of Fair Trading
DHA: Defence Housing Authority
FIRB: Federal Investment Review Board
OSR: Office of State Revenue
REINSW: Real Estate Institute of New South Wales



Renovating/Building
VJ: v-joint (If you imagine a plain toungue and groove ( T&G) floorboard with a bevel on each side......when the two boards are laid together they form a "V". by having a V. the joins are less visible as they fall into shade or in designer speak create a visual distraction. A "V" is used to "disguise" a gap. Also known as TG&V.....(just to confuse the whole issue)!!)
STCA: Subject To Council Approval
Reno/Rehab: Renovation


Investing
B&H: Buy & Hold (you buy a property and don’t sell it, thus ‘hold’ it)
CF101: Cashflow 101 (the game)
Comps: Comparables (properties of a simialir size, condition, and area to yours. A way of valuing your property)
FHOG: First Home Owner’s Grant (A monetary grant available to First Home Owners)
Flip: (where you find a property at well below market value and either pass it on to an investor for a finder's fee or higher price)
FMV: Fair Market Value (what the market thinks the property is worth)
IP: Investment Property
LO: Lease Option (You offer someone the option of buying a property. They place a deposit and then rent from you. At or before the option term, they can choose to buy at the preset price. If they choose not to buy, you keep the deposit)
OPM: Other People's Money (this could be the banks, a partner’s, or anyone’s. A way for you to get ahead faster)
OPT: Other People’s Time (this could be the banks, a partner’s, or anyone’s. A way for you to get ahead faster)
OTP: Off The Plan (You buy a place before it has been built. You settle once the property is fully constructed)
PIA: Property Invest Analysis Software from Somersoft
PIF: Property Investment Forum (here)
PPPPPPP: Prior preparation and planning prevents piss poor performance
PPR/PPOR: Principal Place of Residence (Tax term for when you own, not rent, the place you live in)
RK: Robert Kiyosaki (Investment Author)
SANF: Sleep At Night Factor (Conscience and risk profile)
UCV: Unimproved Capital Value (The value of the property before you increase the CG)
Wrap: Wraparound Mortgage (You own a place and sell it on a hire/purchase scheme)

Computer/Internet
BTW: By The Way
FAQ: Frequently Asked Questions
FWIW: For What It’s Worth
FYI: For Your Information
IMHO: In My Humble Opinion
LMAO: Laugh My A*** Off
LOL: Laugh Out Loud
ROFL: Rolling On Floor Laughing
ROFLMAO: Rolling On Floor Laughing My Arse Off
TLA: Three Letter Acronym

Finance
CF: Cashflow (The income stream from a property, ie cashflow +ve is cash in your hand. Cashflow –ve is a negatively geared property)
CG: Capital Growth/ Captial Gain (This is the increase/decrease in price. Like cashflow, this can be negative or postitve)
CGT: Capital Gains Tax (The tax you pay when selling a property)
DSR: Debt To Service Ratio (How much your loans are over your income)
Equity: (The amount money the property is worth, minus any outstanding loans)
GST: Goods and Services Tax (Australians pay 10% tax on just about everything. You can’t claim it back for property expenses, but you can for other things)
IRR: Internal Rate of Return (A method of calculating how much money you’ll make on a deal)
IO or I/O: Interest Only (On a loan, you only pay the interest portion every month. At the end of the loan term, you still owe the full amount)
LMI: Lenders Mortgage Insurance (Something the bank takes out on your loan to insure itself. At high LVRs, you pay the premium. Happily, you only have to pay once)
LOC: Line Of Credit (A loan that looks like a credit card. Secured against a property, you have a limit, and only pay interest on the current outstanding balance)
LVR: Loan To Value Ratio (The size of the loan over the value of the property. $50,000 loan secured against $100,000 property equals a LVR of 50%
NPV: Net Present Value (How much the property is worth now)
P&I: Princple & Interest (On a loan, each month you pay both an interest and repay some of loan. At the end of the loan term, you owe 0)
PA or p.a.: per Annum (Each Year)
ROI: Return On Investment (A method of calculating how much money you’ll make on a deal)
xcoll/xcollat/xcolled: cross-collateralise, cross-collateralisation, cross-collateralised etc (A situation in which the bank uses multiple properties as security for one loan)

Locations
ADL: Adelaide
BNE: Brisbane
MEL: Melbourne
SYD: Sydney
CBR: Canberra
ACT: Australian Capital Territory
NSW: New South Wales
NT: Northern Territory
QLD: Queensland
SA: South Australia
TAS: Tasmania
VIC: Victoria
WA: Western Australia
NZ: New Zealand



Related Links

http://www.somersoft.com/forums/sho...=&threadid=2923

http://creativefinance.com.au/pages/duediligence.asp

http://www.investorwords.com/

http://www.reiaustralia.com.au/buyi...ssary/index.htm

http://www.swaab.com.au/publications/prop_faq.doc

[muppet]

Hi Guys

Found the post in PT and here it is:
Market The group of potential customers.

NPM No Price Marketing. This where the seller seeks feedback from the market as to the price.

Neg over $ The bottom price an owner would accept for his property.

P.O.A. Price On Application. (Often this means that the property is quite expensive or maybe that the owners don't want their neighbours to know what price they are after)

R.V. Rateable Valuation as indicated on yout rates assessment. Previously this was known as a G.V. or Government Valuation.

L.I.M. (LIM) Land Information Memorandum. This is information held by the council on each property recording details such as zoning, planning and building consents.

P.I.M. Project Information Memorandum. This is preliminary check to confirm that a proposed development complies with the Building Act and City Plan.

Title Certificate ofTitle. This is the Deed of Land held at Land Info NZ(previously the Land Registry Office)

Zoning Areas defined in the City Plan's planning maps. Each zone has different rules controlling the use of the land, and the bulk(size) and position of buildings on each section.

L1 A zone allowing for low density housing eg the minimum section size as right is 450 sq metres (excluding area set aside for shared access etc)

L2 As above, but this aone allows for low density housing eg the minimum section size as of right is 330 Sq metres.

L3-L4 Zones that allow for medium to high-density housing. This means a higher ratio of dwellings(density) per section. (For details please contact the Planning division of the City Council)
(The above zone names may vary from council to council)

Private Sale The vendor is marketing their property independent of a Real Estate Network.

No Agents Many private sellers receive more enquiries from real estate agents wanting to list their property than purchasers. Consequently "no agents" indicates hat they don't want real estate agents to call.

Tender Potential purchasers submit in writing the most they are prepared to pay for a property on a specified date.

Auction Public sale by which a home is sold to the highest bidder providing it meets the reserve price.

Reserve Price Lowest price vendors will sell at, stated to auctioneer immediately prior to auction.

"We are on the market" or "we are selling" This statement is sometimes made by an auctioneer during the auction to indicate that the property has met the reserve.

TLC Home in need of some Tender Loving Care, so be prepared to spend $ or time or both on some maintenance.

w.i.r. Walk-in-robe(as in wardrobe)

perm mats Permanent Materials.

arch. home Architecturally designed home(as opposed to a home featuring arches)

s/alone t/h Stand alone town house.

3BR three bedrooms.

Int. access Internal access(from a garage)

PIA

BA Buyers Agent

IRR Internal Rate of Return

Regards

[Peter Robb]

Acronym, glossary, abbreviation & TLA FAQ

Hi Muppet, thanks for the notes on the lingo, my eyes were blind but now I can SEE!!!!!, Cheers Samsonopanna

[RonHoyFong]

Hi Glossary users

First time I've looked at this string!

Finally I can fully understand what you jargon users are talking about.

As we are all investors perhaps a Glossary for Rental or Leasing properties should be included?

Cheers Ron
Email: [email protected]

TIP - YOU DON'T FIND GOOD DEALS, GOOD DEALS ARE CREATED!

[muppet]

Hi Ron

Yes there is alot of information available on PropertyTalk and alot of good stuff has disappeared down the pages.

Good idea of yours. Feel free to start a list and others will add to it.

Regards

[aka_G]

PIA: Property Investment Advisor.

OPM: Other People Money (like banks, mortgages)

OPS: Other People Skills (like Rental management, trade people...etc...)

[essence]

More TLA's

Mw3 = Men will worship women!!!

[Stevegoodey]

WOM= Waste of money ie cars, women ect...

[Dean@Massiveaction]

"Listening to".
As in I have to go home and give my wife a darn good listening to!!