Glossary

These are some of the most common property investment terms used, which property investors may not come across in everyday life.

Some of these terms can have more than one meaning, so we have applied the definition which applies most closely to the context it will be applied for, relating to property investment. If you believe there are any other property investment terms which are not included below but would benefit property investors, please contact us with further details of the term and relevant definition for our consideration.

Stage Payments

Where the property developer or seller of the investment property or properties requires deposits to be paid at set stages through the build period. Usually, the final payment required upon contract completion will total 100% of the agreed purchase price. The seller of the investment property or properties may require stage payments to fund the build costs if they have not borrowed funds for the development or if the property developer is not cash-rich. Only property investors who are able to secure sufficient funding or who have access to sufficient cash funds may be able to purchase an investment property or properties whereby the property developer or seller requires stage payments throughout the build period. When the investment property is completed, the property investor purchaser may be able to secure a mortgage against the value of the investment property, therefore recouping all or most of their stage payment deposits previously paid.

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