Property Jargon
- What is “rental yield”?The "rental yield" or “yield” of a property tells you how much money you are likely to earn on your investment each year. It is calculated by expressing the annual rental income…
- “Gross yield” vs “net yield”?“Gross yield” is the total rental income received from the tenant of a property. “Net yield” is the yield after paying for any costs relating to that income such as fees or…
- “Rental Escalations” - what are they?A “rental escalation” refers to when the property owner increases the rental charged to the tenant occupying the property. These escalations typically take place on an annual…
- What is “capital growth”?Capital growth (also called a capital gain) is the increase in the value of a property over time. It is the difference between the purchase price/cost and the sale price of the property.
- Capital Growth vs Yield – which is more important?Both capital growth and yield are important considerations in any property investment.
- What is an IPO?An initial public offering (IPO) refers to the process of offering shares of a company to be purchased by the public. Issuing these shares allows a company to raise capital from…
- Do I receive dividends?Yes you do. Dividends (net of all fees and taxes) will be paid to investors quarterly. The dividend is paid into your EasyProperties account.
- Do I receive any interest on cash that is not invested?Yes you will. EasyProperties pays interest on funds that qualify, but we do NOT pay interest on unsettled funds. On all funds that qualify (explained below), client accounts will…
- What is the Equity to debt ratio for the purchases?The purchase price of the properties will be covered by approximately 70% equity and approximately 30% debt.
- IRR (internal Rate of Return) and YieldIRR stands for Internal Rate of Return - it’s the annualised percentage your investment is expected to grow over the lifetime of the investment. For example: If a property shows…
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