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12 ESSENTIAL TERMINOLOGIES YOU NEED TO KNOW BEFORE BUYING YOUR HOUSE/LAND REVEALED
In this incredible piece, I have outlined quite a number of words with their definitions. This may be a long read, but trust me everyone needs it. No one wants to remain under his or her landlord’s for the rest of his or her life.
1. ALLOCATION: This a process of officially assigning or designating a piece of land or property to an individual or entity, often after purchase or acquisition. Example: After purchasing a plot of land in a residential estate, the buyer receives an official allocation letter from the developer, confirming their ownership and the specific location of their plot.
2. INSPECTION: The act of carefully examining a property to assess its condition, features, and suitability for purchase or rental. Example: Before finalizing the purchase of a house, the buyer arranges for a thorough inspection to identify any structural issues or necessary repairs.
3. SUBSCRIPTION FORM: A document used to formally register interest or commitment in a real estate project, typically requiring personal and contact information from potential buyers or investors. Example: Interested investors fill out a subscription form to indicate their desire to participate in a real estate development project, providing their contact details and investment preferences.
4. BUY AND FLIP: A real estate investment strategy where an investor purchases a property with the intention of renovating or improving it quickly and then selling it for a profit. Example: An investor buys a run-down house, renovates it extensively, and sells it for a higher price within a few months to capitalize on the increased market value.
5. RESIDENTIAL: Referring to properties or areas primarily intended for living purposes, such as houses, apartments, or condominiums, as opposed to commercial or industrial use. Example: A newlywed couple purchases a residential apartment in a family-friendly neighbourhood to start their life together and raise their children.
6. COMMERCIAL PLOTS: Parcels of land designated for business or commercial purposes, such as the construction of offices, retail stores, or industrial facilities. Example: A developer purchases a commercial plot in a busy downtown area to build a shopping mall that will attract shoppers and generate rental income from retail tenants.
7. CORNER PIECE PLOTS: Land parcels situated at the intersection of two streets, typically valued for their increased visibility, accessibility, and potential for various development opportunities. Example: A real estate investor buys a corner piece plot in a rapidly growing urban area, envisioning it as an ideal location for a mixed-use development project with high visibility and foot traffic.
8. LAND BANKING: The practice of acquiring and holding undeveloped land as an investment strategy, with the expectation of future appreciation in value or development potential. Example: A wealthy investor purchases large tracts of agricultural land on the outskirts of a growing city, banking on the potential for urban expansion and increased land values in the future.
9. LEASEHOLD: A real estate arrangement where a tenant rents a property for a specified period, usually long-term, but does not have ownership rights. An example would be leasing an apartment in a residential complex for a period of three years, during which the tenant pays rent to the landlord but does not own the property.
10. TITLE DEED: A legal document that proves ownership of a property, detailing the rights, obligations, and restrictions associated with the ownership. For example, when purchasing a house, the title deed is transferred from the seller to the buyer, providing legal evidence of the buyer’s ownership of the property.
11. INITIAL DEPOSIT: A sum of money paid upfront by a buyer to secure a property purchase, typically a percentage of the total purchase price. For instance, when buying a house, the initial deposit might be 10% of the total price, paid to the seller to demonstrate serious intent to buy.
12. PAYMENT PLAN: A structured schedule outlining how payments for a property purchase will be made over time, often agreed upon between the buyer and seller or developer. For example, when purchasing an apartment off-plan, the buyer might agree to a payment plan where they make installment payments at different stages of construction until the property is completed and handed over.
If you gained value, mention your friend who you would love to be a landlord soon to read this!
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