Are you quite new in the world of real estate investment? And since you have stepped into this highly-promising world of opportunities, do you want to learn all the words, slang, and terminologies that today’s real estate investors use to put more weight on their proposals? If yes, then you have come to the right place.
Recently we had an exclusive interview with a renowned real estate group for developing the best projects for flats in Jaipur. If you want to get fame and success in this field then there are many jargons, terms, and acronyms that you need to remember. Otherwise anytime you hear terms like EMI or ROI, you will feel left behind.
Although there are more than a hundred terms for a pro to remember, you don’t have to memorize them all at your level. Hence, we have enlisted the most common real estate terms to communicate perfectly with people who want to buy flats in Jaipur. Here you go:
1) Return on Investment (ROI)
As appears from the name ROI stands for the profit (Return) you make on your investment (Invested amount of money). Once you calculate the total capital cost of investment and subtract it from the overall revenue, you get the return on your investment in the form of profit.
2) Basic Sale Price (BSP)
Basic Sale Price is just another name of the popularly heard term – Market Value or MV. It is the price of the land when calculated against per sq ft of the space. One thing to remember here is that it excludes additional charges like goods and service tax (GTS) and any other charges which come after the buying decision.
They could range between amenity charges, maintenance charges, or the preferred unit floor charges. As a rule of thumb, those additional charges can go as much as 25% of the total basic selling price of the property.
3) Cash Flow
This term is very important for real estate investors. It is the net amount of income you will get after purchasing a property. Mostly, it comes from the rent. However, to calculate the net cash flow, you need to deduct all the operating costs from it. The difference you will get finally will be your net cash flow from all your assets.
There are further two terms – positive cash flow and negative cash flow. When your outcomes are more than your expenses, then it is called positive cash flow. And when the expenses are more, then it is called a negative cash flow. A smart investor only invests in a property that has a high chance of giving a positive cash flow.
Homeowner’s Association is an organization in real estate that is more or less a group of homeowners in a certain society. For instance, the society or gated community concept is nowadays gaining a lot of popularity due to the range of amenities they offer. Those projects house many residents. And the group of those residents is called HOA.
A lot of people are aware of this word. In the world of real estate, appreciation is the rise of the price of certain property over a certain period of time. There are generally a lot of factors that an investor needs to keep in mind to get an idea about the appreciation value is the location advantage, demand of property in the area, the inflation rate, availability of services near the location like hospitals, schools, offices, and grocery stores.
6) Turnkey Property
Turnkey properties are actually heaven for budding investors because not only they are cheap, but at the same time, their appreciation is always very great. You might be wondering what a turnkey property actually is. A turnkey property is a real estate project which is currently in development but going to be completed very soon.
So these popular real estate vocabulary and terms will not only help you start your journey in the landscape of real estate, but at the same time, it will make you sound like a pro while communicating with your customers or clients. Slowly, it will become a part of your communication skills.
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