Glossary

Property comes with a lot of jargon. This glossary explains the terms you’ll see across Homr — in suburb profiles, investment analysis and enquiries — in plain English. Definitions are general information only and are not financial, legal or tax advice; see our Disclaimer.

Deposit

The upfront cash you contribute towards a purchase, usually expressed as a percentage of the price. Lenders typically expect 10–20%.

Pre-approval

A lender’s conditional indication of how much it may lend you, based on your finances. It is not a formal loan offer and is usually valid for a limited time.

LVR (Loan-to-Value Ratio)

The size of your loan as a percentage of the property’s value. A $600k loan on a $750k property is an 80% LVR. Above 80% usually attracts Lenders Mortgage Insurance.

LMI (Lenders Mortgage Insurance)

A one-off premium a lender charges (paid by the borrower) when the LVR is above 80%, protecting the lender — not you — if the loan defaults.

Stamp Duty

A state government tax on property transfers. The amount varies by state, price and buyer type (e.g. concessions for first-home buyers).

Equity

The portion of a property you actually own — its current value minus what you still owe on the loan.

Offset account

A transaction account linked to your loan; its balance reduces the loan balance on which interest is calculated.

Settlement

The final stage of a purchase where ownership legally transfers and the balance of the price is paid.

Capital Growth

The increase in a property’s value over time, usually shown as an annual percentage. Historical growth does not guarantee future growth.

Rental Yield (Gross)

Annual rent as a percentage of the property price, before costs. $30,000 rent on a $600,000 property is a 5% gross yield.

Rental Yield (Net)

Yield after ongoing costs (rates, insurance, management, maintenance, strata). A truer picture of income than gross yield.

Cash Flow

The difference between the rent you receive and the costs of holding the property. Positive cash flow means income exceeds costs.

Negative Gearing

When the costs of owning an investment property (including loan interest) exceed the rental income, producing a loss that may have tax implications.

Positive Gearing

When rental income exceeds the costs of owning the property, producing a profit that is generally taxable.

Depreciation

A non-cash deduction for the ageing of a building and its fixtures, which investors may be able to claim. Seek advice from a qualified tax professional.

Vacancy Rate

The proportion of rental properties in an area sitting empty. Lower rates suggest stronger rental demand.

Days on Market

The average time listings take to sell in an area. Fewer days can indicate a competitive, in-demand market.

Median Price

The middle sale price in an area over a period — half sold for more, half for less. Less skewed by outliers than an average.

Comparable Sales (comps)

Recent sales of similar nearby properties, used as a benchmark for what a property might be worth.

GNAF

The Geocoded National Address File — Australia’s authoritative address dataset (licensed via Geoscape Australia). Homr uses it to match and locate properties precisely.

SA1 / SA2

Australian Bureau of Statistics “Statistical Areas” — standard geographic units used to report demographics and market data at neighbourhood (SA1) and suburb-ish (SA2) scale.

Points of Interest (POI)

Nearby amenities — schools, parks, transport, shops, cafes — that Homr surfaces to describe a location’s lifestyle and convenience.

School Catchment

The geographic zone from which a public school accepts enrolments. Living inside a sought-after catchment can affect demand and price.

Zoning

Local-government rules that govern how land can be used and developed (residential, commercial, mixed-use, etc.).

Hazard Overlay

Mapped risk information such as flood or bushfire exposure, drawn from state government data. Overlays are indicative and should be verified for a specific address.

Investment Score

A Homr-generated indicator that blends metrics like growth, yield and demand into a single signal. It is general information to aid comparison — not a rating of suitability for you.

Suburb Profile

Homr’s summary of a suburb’s market, demographics and lifestyle, assembled from multiple public and licensed data sources.