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Equity: Is the difference between what your home is worth and how much you owe on it. For example, if your home is worth $300,000 and you owe $100,000, you have $200,000 equity (subject to a bank valuation). Find out more detail about equity in this article on Refinancing.
Negative Gearing: Is when the annual cost of your investment is more than your return, so you will need to fund the shortfall. You may be able to offset that shortfall against other assessable income.
Positive Gearing: Where the income from your investment property is greater than your expenses. The excess amount may be added to your assessable income.
Strata Title: The legal ownership of an apartment complex and individual units. In most cases all unit holders have joint ownership of the common property with all other lot owners in the strata scheme and separate ownership of their unit.
Stamp Duty: A state government charge payable on the purchase of property. It is calculated based on the purchase price of the property you are buying.
Capital Gains Tax: The tax you pay on any gain you make when you sell your investment property for more than you purchased it. If you owned the property for more than 12 months and are an Australian resident for tax purposes, you may be entitled to reduce the capital gain by 50%.
Rental Yield: The annual rent you receive from your property. This will usually be a percentage of the capital value of the property.
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