Glossary
Property research, explained.
Plain-language definitions of the terms that come up in Australian property research — every entry cited to its primary statute or industry source. Updated quarterly. 65 terms today; growing.
Yield + cashflow
- Rental yield
- The annual rent a property earns expressed as a percentage of its purchase price. Gross yield ignores costs. Net yield subtracts holding costs.
- Gross yield
- Annual rent divided by purchase price, before any costs are subtracted.
- Net yield
- Annual rent minus annual holding costs, divided by purchase price.
- Vacancy rate
- The share of rental properties unoccupied at a point in time, expressed as a percentage.
- Thin market
- A property market or suburb-cohort with too few transactions to compute statistically reliable yield, growth, or vacancy figures.
Tax
- Negative gearing
- A tax position where an investment property's deductible costs exceed its rental income, producing a 'rental loss' that reduces other taxable income.
- Division 43 (capital works)
- ITAA 1997 division covering depreciation of structural elements of an investment property such as walls, roof, floors, kitchen carcase, and bathroom tiling.
- Division 40 (depreciation)
- ITAA 1997 division covering depreciation of plant and equipment in investment property such as appliances, carpets, blinds, and A/C units.
- Capital gains tax (CGT)
- Tax payable on the capital gain when an asset is disposed of, calculated as sale price minus cost base, with concessions for individuals holding 12+ months.
- 50% CGT discount
- Individuals, joint owners, and trusts holding an asset for 12+ months pay tax on only half the capital gain.
- Main residence exemption
- An ITAA 1997 s118-110 exemption that makes the sale of your main residence tax-free for capital gains purposes.
- CGT 6-year absence rule
- Allows a former main residence to keep main-residence-exempt status for up to 6 years after the owner moves out, provided no other property is claimed as main residence.
- Marginal tax rate
- The tax rate that applies to your next dollar of income, determined by where your taxable income sits in Australia's progressive tax bracket schedule.
First home buyer + financing
- Stamp duty (transfer duty)
- A state-level tax on property purchases, calculated on the dutiable value (typically purchase price or market value, whichever is higher). Each state runs its own schedule.
- First Home Buyers Assistance Scheme (NSW)
- NSW state scheme that fully exempts first home buyers from stamp duty on purchases up to $800,000, with partial concession to $1,000,000.
- Home Guarantee Scheme (HGS)
- A federal scheme that lets eligible first home buyers, key workers, and single parents borrow up to 95% LVR without paying LMI.
- First Home Super Saver Scheme (FHSS)
- Lets first home buyers contribute up to $15,000/year ($50,000 total per person) to super at the 15% concessional rate, then withdraw it as deposit.
- Lenders Mortgage Insurance (LMI)
- A one-time insurance premium charged when borrowing more than 80% of property value, protecting the lender against default loss.
- Loan-to-value ratio (LVR)
- The percentage of a property's value that's financed by a loan. Loan amount ÷ property value × 100.
- APRA serviceability buffer
- Banks must assess a borrower's ability to repay at the loan rate plus 3 percentage points, not the actual rate offered.
Open the playbook — 11 chapters end-to-end, every threshold cited.