Real Estate Glossary Terms Beginning With – I

Updated: November 22, 2021

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Terms Beginning With - I

Property Development & Investment Glossary, Terms & Definitions

Illiquid

It is difficult to convert into cash.

Implied contract

Actions generate a contract that isn't always written or stated.

Implied warranty

A legal warranty that is not recorded but exists.

Impound account

A federal agency established in 1965 to aid in the construction of housing in the United States.

Improved land

Improvements have been made to the land.

Improvements

Buildings, roadways, and utilities are examples of additions to bare land that tend to improve its value.

Improvements to land

Curbs, sidewalks, roadways, lighting, and sewers are often publicly owned infrastructure that are built to allow the development of privately held land.

Income

The income that an investment property generates.

Income approach

When the revenue is capitalised at the current market rate for the kind of property, an appraisal technique is utilised to evaluate value based on the income generated.

Income property

Real estate has the potential to generate money.

Income stream

The money that is created on a regular basis as a result of an investment.

Incorporeal interest

In property investment, a non possessive right.

Incurable depreciation

A flaw that cannot be fixed or is not economically feasible to fix.

Indemnify

To safeguard another person against harm or loss.

Independent contractor

A freelancer or self-employed contractor.

Index

A metric that indicates the present state of the economy or finances.

Indexed lease

A contract in which the lease rate can rise or fall at predetermined intervals depending on a predetermined index.

Indexed loan

A loan whose interest rate can rise or fall at predetermined intervals based on a predetermined index.

Individual metering utility system

Each renter has their own utility metre in this metering scheme.

Industrial development bond (IDB)

A bond issued by a municipal or state government to assist in the financing of an industrial plant or facility that will be leased to a private company.

Industrial park

A designated area for industrial purposes.

Industrial property

Real estate designated for industrial use, such as manufacturing or warehousing.

Inducement

Points in a lease or sales contract agreement that can be negotiated in the tenant's/favour buyer's and utilised to persuade them to sign the contract.

Industrial district or park

A planned park-like complex that is intended to accommodate specialised industries. It is responsible for all public utilities, roadways, railroad sidings, and other infrastructure.

Inflation

A rise in prices across the board, resulting in a reduction in buying power.

Inflation risk

The possibility of real estate losses as a result of changes in nominal rates.

Inner city

An older neighbourhood in a city near the core business sector.

Inspection

An examination of documentation or the physical features of a property.

Inspection period

A length of time during which a buyer examines the property and the documentation associated with a deal.

Instalments

Payments made on a debt on a regular basis.

Instalment contract

A contract for the purchase of land.

Instalment sale

The profits of a sale are paid in instalments over a certain length of time, allowing capital gains to be spread out over several years.

Instrument

A written legal contract that establishes the parties' rights and duties.

Insurable title

A title that a title firm is willing to insure.

Insurance

In exchange for a premium paid by the insured, one party promises to pay a sum of money to the other if the latter suffers a certain loss.

Insurance coverage

The quantity of funds and form of insurance carried by a property.

Interest

A monetary remuneration for the usage of money.

Interest expense

Payments made in exchange for the usage of borrowed funds.

Interest-only loan

Only interest is paid on a loan during the duration of the loan.

Interest rate

A fee based on a percentage of a sum of money.

Interior partitions

Non load-bearing interior walls that surround or divide tenant space.

Internal rate of return (IRR)

The discounted rate that results in a net present value of zero. The internal rate of return may be thought of as the investment's rate of return.

Internal rate of return on equity

The present value of each after-tax cash flow plus the after-tax equity reversion is equated with the cost of equity using a discounted cash flow approach.

Internal rate of return on total investment

A discounted cash flow method for calculating the rate at which the current value of net operational income plus the predicted net selling price equals the total cost of an investment.

Internal Revenue Code

The legislation that governs how and what types of income are taxed, as well as what costs may be deducted.

Internal Revenue Service (IRS)

The federal government agency in charge of collecting federal income taxes.

Interim financing

Prior to permanent funding, a loan is made.

Interstate offering

A gift to one or more states' inhabitants.

Intestate

A person who passes away without leaving a valid will.

Intrastate offering

An offering in which all of the investors live in the same state as the property.

Inventory

Property that is being held for the purpose of sale or usage.

Investment life cycle

The length of time that a property has been owned.

Investment property

Property purchased for the purpose of generating current income and capital appreciation.

Investment tax credit

A tax break depending on the cost and useful life of specific assets acquired.

Investment value of equity

After-tax cash flow and after-tax equity reversion are valued using a discounted cash flow approach.

Investor

A person or a business that invests in a cash transaction.

Investor note financing

Investor promissory notes are financed.

Involuntary lien

A lien that is imposed on property without the owner's consent.

Glossary Index

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