Terms Beginning With - I
Property Development & Investment Glossary, Terms & Definitions
It is difficult to convert into cash.
Actions generate a contract that isn't always written or stated.
A legal warranty that is not recorded but exists.
A federal agency established in 1965 to aid in the construction of housing in the United States.
Improvements have been made to the land.
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.
The income that an investment property generates.
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.
Real estate has the potential to generate money.
The money that is created on a regular basis as a result of an investment.
In property investment, a non possessive right.
A flaw that cannot be fixed or is not economically feasible to fix.
To safeguard another person against harm or loss.
A freelancer or self-employed contractor.
A metric that indicates the present state of the economy or finances.
A contract in which the lease rate can rise or fall at predetermined intervals depending on a predetermined index.
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.
A designated area for industrial purposes.
Real estate designated for industrial use, such as manufacturing or warehousing.
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.
A rise in prices across the board, resulting in a reduction in buying power.
The possibility of real estate losses as a result of changes in nominal rates.
An older neighbourhood in a city near the core business sector.
An examination of documentation or the physical features of a property.
A length of time during which a buyer examines the property and the documentation associated with a deal.
Payments made on a debt on a regular basis.
A contract for the purchase of land.
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.
A written legal contract that establishes the parties' rights and duties.
A title that a title firm is willing to insure.
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.
The quantity of funds and form of insurance carried by a property.
A monetary remuneration for the usage of money.
Payments made in exchange for the usage of borrowed funds.
Only interest is paid on a loan during the duration of the loan.
A fee based on a percentage of a sum of money.
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.
Prior to permanent funding, a loan is made.
A gift to one or more states' inhabitants.
A person who passes away without leaving a valid will.
An offering in which all of the investors live in the same state as the property.
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.
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.
A person or a business that invests in a cash transaction.
Investor note financing
Investor promissory notes are financed.
A lien that is imposed on property without the owner's consent.