And now, the latest installment of definitions to help you understand the myriad of real estate terminology.

• Home Equity Loans are a line of credit that is secured for the purpose of buying a home. This is a first registered mortgage over your residential property.
• Investment Property refers to a piece of property that has been purchased with the express purpose of netting a profitable return on the property. In Australia right now a good investment property would be any rental residence. Investment properties that meet the demand of renters can net a good profit especially along the Gold coast.
• Interest is the fee that is paid to the lender of a loan. There are two different types of interest. The first is called ‘simple interest’ or ‘flat rate interest. This type of interest has a fixed amount of interest that is paid each year on the amount of money that has been borrowed. The other kind of interest is called ‘compound interest’ Compound interest is calculated on the initial principle as well as the accumulated interest over previous periods.
• Land is whatever the deed holder owns up to the sky and down into the Earth. A few exceptions are mines and minerals which are owned by the State and the air space is limited to reasonable usage.
• Lease is a verbal or written document that allows a person to gain possession of a property for a specific amount of time without actually owning the property. The lease usually outlines terms and agreements in relation to the property in regards to rent and time of occupancy.
• Leverage happens when you borrow money to purchase an investment. In order to magnify the rate of your profits from capital growth or your income from the investments. Often times investors will leverage one property in order to purchase another.
• Lien is a form of security interest that is granted over an item of property to secure the payment of a debt or performance of some other obligation.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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Now we will continue with a look at common real estate words and what they mean.

• Easement is the right to use some or all of the land that is owned by someone else for specific purposes. For instance if there is a river that borders your property you may have an easement through your land to allow workers access to the river.
• Economic Obsolescence happens when your property losses value through no fault of you own. This would happen if a rubbish dump, or toxic waste facility was built right next to your property.
• Enduring Power of Attorney refers to the written authorization that one person gives to another person allowing them to make legal decisions for them. This usually happens when a person becomes sick or incapacitated in some way that prevents them from making important financial decisions on their own. Enduring Power of Attorney should only be given to a trusted person.
• Fixture refers to any item in a home cannot be removed from the home without causing damage. Examples of this include a built in hot water system, kitchen countertops and cabinets, the toilet, stove, sinks, bathtub and other such items.
• Gated Communities are areas that are enclosed within a fenced in developed area. These areas often afford an added element of safety due to the enclosed nature of the property.
• Gazzumped happens when an agent that was supposed to be helping you stabs you in the back and helps themselves instead. This occurs when you are interested in purchasing a property or asset and the agent purchases it for themselves. This is often done through the use of a shelf company or a third party.
• Gearing. There are two different types of gearing. Negative gearing occurs when you borrow money in order to invest in an income producing property and you don’t end up making back as much money as what you borrowed. An example of this would be if the interest that you have to pay on the money that you borrowed is higher than the rental process that you get from the property itself. You are actually losing money this way. Positive gearing occurs when you make more money than the amount that you borrowed.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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Property options are a great way to invest in real estate at a much lower price than that of the traditional real estate investments. As a matter of fact, property options are an ideal investment for several reasons that go beyond the simple pleasure of discount ownership. Any person who is considering making an investment in property should be aware that there are additional ways of getting what you want than the usual options for purchasing real estate by means of a mortgage and down payment. You’ll be surprised to learn how easy it is to obtain your own property options—for a lot cheaper than you think.

What’s My Initial Investment?

The amount of investment that it takes to get started in property options and become a success varies greatly, depending on the property and the location. Mark Rolton, best known as the founder of Massland, is a great example of just how successful you can be with real estate options. Since he was a leader in the market of property options, Mark Rolton was able to buy property options from a piece of property worth more than four million dollars and turned a profit for himself of at least two million dollars. The property options that he purchased cost him only two thousand dollars.

If you attend a Mark Rolton seminar or purchase his products and take advantage of the resources that are currently available to you, you will learn how easy it is to build your own fortune using his simple techniques. You will be amazed at how easy it is to make a small investment and have it turn into a long-term investment with great positive return. With a little time and commitment on your part and the help of the useful resources available through his company, you are sure to achieve your goals in record time.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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In this post you we will explore some more real estate terminology to help guide you through the world of real estate with a better understanding of what all those phrases mean.

• • Capital Gain is the tax that you have to pay on any capital gain that you make. It is an additional component of your annual income tax. When you make a net capital gain, as in from the sale of a real estate investment property, you are taxed at your marginal tax rate.
  • Clear Title pertains to land or property that does not have any liens debts against it including a mortgage. This is property that is owned free and clear.
  • Collateral is something of value that you would use as an asset to secure a loan.
  • Conveyancing is the legal work that is involved in the preparing of sales contracts, mortgage paperwork and any related documents that are used when you buy or sell a home, land or investment property. Conveyencing can be done by a licensed conveyancer, a solicitor, or you can do it yourself.
  • Covenant is the agreement of one party to adhere to certain terms, conditions or restrictions in regards to a certain property. Covenants are usually only valid if they are noted on the title to the land. A covenant is also defined as a lawful restriction on the use of the property or on improvements permitted on the property. For instance, some lake side properties may have covenants restricting the building of an addition or dwelling closer to the lake.
  • Decrement is a decrease in the size of a property due to erosion.
  • Developer is the company or person who purchases a property with the express purpose of developing the property and reselling it for a profit. Some areas are trying to restrict developers from purchasing land in Australia in order to protect the ecological system.
  • Dual Occupancy refers to a block of land or a building that is zoned to allow the owner of the property to reside with additional living quarters, separate from the owner. An example of a dual occupancy dwelling would be a duplex, or a granny flat.

Check back next time as we continue to explore the fascinating world of real estate terminology.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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Stress, fear, and concern are a major factor when it comes to property investments—especially with all of the trouble that is currently upon the economy in the United States of America that is slowly affecting the lives of people all over the globe, including Australia and the United Kingdom. It can be quite scary.

It is hard to be sure that your property investment will not falter even though your friends and associates are quickly becoming aware of the harsh reality of foreclosure. Many people do not realize that there are still many ways to make a significant income with property investments without placing yourself at too high of a risk.

Combating Investment Fears In Tight Economies

It can be scary to just hand over a huge wad of your hard-earned cash and in return, all you get is a promise to construct your building in some foreign country of investment. However, you do not have to be afraid. You have the resources of Mark Rolton and Massland available to provide you with information that will calm your fears of wealth and lead you on the right path to successful investments and millionaire status.

Many investors are not aware that there is no need to hassle with such risk factors to secure their property investments. If you want to build your fortune with secure real estate, there is no better way than through property options. Property options are readily accessible and give you the ideal tools that you need to become a success.

These are the same principles that Mark Rolton used to build Massland. You can be just as great a success. There is no reason to be afraid to become as wealthy as you have always imagined you could be. Even in the stressful and unstable state of the real estate market, your property options will earn you a fortune without fearsome risks.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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