Auction Clearance Rate

The percentage of properties sold at auction in a given week or month. A real-time gauge of buyer demand in auction-heavy markets.

Capital Gains Tax (CGT)

The tax paid on the profit when an investment property is sold. In Australia, a 50% discount applies if the property was held for over 12 months.

Capital Growth

The increase in a property's value over time. Combined with rental yield, it forms total investment return.

Cashflow

The net cash a property generates or consumes after all income and expenses: the working-capital truth of an investment.

Comparable Sales (Comps)

Recently sold properties with similar characteristics, used to estimate what a property is worth.

Days on Market (DOM)

The average number of days a property is listed before it sells. A direct measure of buyer demand in a market.

Debt Service Coverage Ratio (DSCR)

The ratio of rental income to mortgage repayments. A DSCR above 1.0 means the property covers its own loan.

Depreciation

Tax deductions claimed on the decline in value of a property's building and fixtures. Can total tens of thousands per year for newer properties.

Gross Yield

Rental income divided by property price, before any expenses. The quickest (but crudest) measure of a property's cash return.

Investment Score

A single 0-100 rating combining yield, capital growth, market dynamics, location, and risk signals into one ranking number.

Loan-to-Value Ratio (LVR)

The loan amount as a percentage of the property's value. Determines whether lender's mortgage insurance is required.

Negative Gearing

When a property's rental income is less than its holding costs, producing a tax-deductible loss that offsets other taxable income.

Net Yield

Rental yield after subtracting operating expenses. A more realistic measure of what the property returns in practice.

Positive Cashflow

When a property's rental income exceeds its holding costs, so it pays for itself and generates surplus income.

Price-to-Rent Ratio

The property price divided by annual rent. The inverse of gross yield. Above 25 signals a rent-friendly market; below 15 signals a buy-friendly one.

Rental Yield

The annual rental income from a property expressed as a percentage of its purchase price. The fastest way to gauge whether a property will cover its own costs.

Serviceability

A lender's assessment of whether a borrower can afford ongoing loan repayments at a stress-tested interest rate.

Stamp Duty

A state-based tax on property purchases, typically 3-5% of the purchase price. One of the largest upfront costs in an Australian property transaction.

Vacancy Rate

The percentage of rental properties in a suburb that are currently empty. A leading indicator of rent growth and landlord leverage.

Value Buy

A property priced below its estimated market value or below recent comparable sales: the signal of an undervalued opportunity.