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/showthread.php?s=&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
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/showthread.php?s=&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
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