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Glossary

We know the buying process can be a bit overwhelming at times, so our team have made it simple with these easy to understand property definitions.

Headworks

Infrastructure that’s installed on a vacant block, so services like water, sewerage, gas, etc can be connected later on.

Home Equity

The difference between the value of your property and what you have left to pay on your mortgage... you can look at it is as the portion of your house that you have actually paid for!

Practical Completion

When the construction of your block of land or house is complete as per your contract and you can get building on the block or move in to your new home!

Capital gains tax

It’s the tax you have to pay for the difference of price when you bought a property, compared to what you received when you sold it.

Cash rate

If you have a mortgage (or are about to get one) this is a rate you should be interested in. It’s basically the interest rate charged to banks on their loans by the Reserve Bank of Australia which impacts mortgage rates and your repayments if you’ve got a variable home loan.

Conveyancer

Once you’ve had your offer accepted to buy a home or block, this is the person who’ll make it happen. They look after all the legalities that come with transferring the ownership from one person or company to another.

Cooling of period

Think of it like a ‘get out of jail free’ card. It’s a window of time where you can change your mind and cancel your offer to buy without incurring any costs.

Lot number

There’s often confusion between your lot number and street address. Your lot number is not your street address, it’s a number used to identify an area often before any of the street names have even been decided. You’ll find it on your land title.

Off the plan

Property that you can buy ahead of time, based on images or blueprints, before it’s actually built.

Settlement

When settlement happens, you officially become the owner of your new home or land. If it’s a completed home, when it’s transferred into your name, you get the keys!

Siteworks

This is the process of getting your land ready for building – it might include clearing, excavation or block levelling.

Stamp duty

This is the tax the Government charges for the transfer of land or a home. It varies by state and the amount depends on the value of the property.

Title

The official bit of paper which says that the land is now yours! Congratulations, it means you can start building.

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