Navigating Tax and Real Estate: Your Comprehensive Guide

As the financial year draws to a close, it's time to take proactive steps toward managing tax-related matters, especially for property owners, renters, and potential buyers. At Entourage Hub, we understand the importance of clarity and insight when it comes to real estate and financial processes. That's why we've crafted this explanatory guide, designed to demystify tax terms, refresh knowledge, simplify real estate terminology, and provide assistance with tax duties and expectations. Let's delve into our glossary of market and monetary phrases:

Appraisal:

A vital step in the selling process, an appraisal involves a real estate professional evaluating a property to determine its potential selling price, providing valuable insights to sellers.

 

Body Corporate:

In strata properties, the body corporate serves as the governing body representing the collective interests of owners, overseeing management and maintenance.

 

Building Code of Australia and New Zealand:

Establishing minimum standards for building safety and health, these codes are essential regulatory frameworks ensuring the well-being of occupants.

 

Buyers' Market:

A market condition characterized by an oversupply of properties, offering favorable conditions for buyers to negotiate and secure competitive deals.

 

Capital Gains:

The increase in the value of a capital asset, such as property, resulting in a higher value than the purchase price. Capital gains are realized upon the sale of the property.

 

Conditions of Sale:

Terms added by both buyer and seller to a sale contract, dictating specific conditions that must be met before finalizing the contract.

 

 

 

Cooling-Off Period:

A designated timeframe post-sale during which the buyer has the option to withdraw from the contract, subject to specified conditions.

 

EOI (Expressions of Interest):

Utilized to gauge interest and potential selling price, EOI helps sellers assess market demand before committing to a sale.

 

Guarantor:

An individual who assumes responsibility for loan payments and contractual obligations if the borrower defaults.

 

Loan-to-Value Ratio (LVR):

A ratio comparing the loan amount to the appraised value of the property, crucial in assessing loan risk and eligibility.

 

Negative Gearing:

A financial strategy involves borrowing money to invest in a property, where the property's expenses exceed its income.

 

Reserve Price:

The minimum sale price set by the seller serves as a threshold for auction bidding.

 

Sellers' Market:

Market conditions favor sellers due to an undersupply of properties, resulting in increased prices and competition among buyers.

 

Settlement:

The final stage of a property purchase is when the buyer completes payment and gains legal ownership of the property.

 

Stamp Duty:

A state-imposed tax paid by the buyer on property transactions, including contracts.

 

Under Contract:

An agreement reached between buyer and seller on a property price, subject to specified conditions such as the cooling-off period.

 

Valuation:

A professional assessment is conducted by an accredited valuer to determine the property's value for legal or financial purposes.

 

For more information on various market and tax-related terms, we recommend consulting with our trusted professionals such as a real estate agent, any bank representative, or a financial planner.

At Entourage Hub, we are committed to equipping you with the knowledge and support you need to navigate the complex real estate market confidently.

 

For more information, please call 1800AUGMENT or visit our website at www.entouragehub.com.au