Understand the term. Then understand what it changes.

Search Australian property-investing language for a plain-English answer, a worked calculation where it helps, and the catch worth knowing.

Direct answer · common starting point 01 / 12

LVR

Loan-to-value ratio

LVR tells you how much of the property is debt-funded. A 75% LVR means the loan equals three-quarters of the lender’s property value.

Loan $450,000 Property value $600,000 LVR 75%

12 terms

How much debt can I safely carry?

What does this property actually earn or cost?

Cash flow Property cash flow The cash received from a property minus the cash paid out over the same period. Gross rental yield Annual rent divided by property value, before property expenses. Net rental yield Annual rent minus ongoing property expenses, divided by property value.

What changes the taxable result when I sell or hold?

CGT Capital gains tax Income tax applied to a net capital gain when a CGT event happens, such as selling an investment property. Cost base CGT cost base The tax-law amount used when working out a capital gain on a CGT asset. Negative gearing A rental property tax position where deductible rental expenses exceed rental income.

What must I check before I commit?

Due diligence Property due diligence The checks a buyer completes before committing to a property purchase.

Definitions create orientation. Your numbers create the decision.