Common Terms Used Worldwide That Every Home Buyer Should Know


At its core, real estate is a commodity. It’s a home that you either buy or rent, and it’s mostly the same no matter where you go. However, there are some key differences between the markets in different countries that can affect both how quickly you can sell your home and how much money you’ll make on it when it comes time to sell. Consult experienced property buyers agent gold coast to avoid future conflicts.

This article will explain some of those differences so that you can better understand them when making decisions about buying property abroad.

Actual Cash Value

Majority of property buyers agent gold coast used technical terms that you might not understand. Actual cash value (ACV) is the dollar amount that you would expect to pay for a loss, if it happened today. This means covering the cost of property repairs and depreciation. ACV does not include any other forms of compensation like:

  • Repair costs
  • Loss of income due to property damage or repair time
  • Moving expenses

Adjustable-rate mortgage

Adjustable-rate mortgages are mortgages that have an interest rate that can fluctuate over time. For example, an adjustable-rate mortgage might start with a 3% interest rate and then become a 5% interest rate after one year. The word “adjustable” means the lender can change the terms of your loan based on economic conditions or other factors outside of your control.

Some lenders offer fixed-rate mortgages in which they promise to keep the same interest rate until you pay off your loan or refinance. 

Adjustable-rate mortgages allow more flexibility when rates go up or down during a period of high inflation (or deflation), but at times like these it may be difficult to find fixed rates available for purchase because banks don’t want their own loans affected by fluctuations within their jurisdiction’s market demand for housing services.

Adjustment Period

The adjustment period is the time between interest rate changes. The adjustment period can be thought of as a “grace period,” because it allows you to adjust your budget for any increase in your monthly mortgage payment. 

This can be helpful if you are not planning to stay in your home for more than a few years. For example, suppose that you buy a house and choose an initial interest rate of 3%. When your first adjustment occurs after one year, the new rate could be 3% or 4%.

property buyers agent gold coast

 If it changes from 3% to 4%, then over the next two years (the remainder of your loan term), this will increase your monthly payments by anywhere from $100-$200 per month ($1260-$2520 annually).

If there were no adjustment period, then every year during which an interest rate increased would result in higher payments on average throughout the rest of the loan term—making homeownership less affordable overall! 

Annual Percentage Rate (APR)

APR is the annual percentage rate that the lending institution charges you on your loan. This is a figure that you are going to want to know before making any big financial decisions, such as buying a house or car. 

APR can often be difficult to find when getting quotes for loans, but it’s an important piece of information because it takes into account all fees associated with your loan and gives you an idea of how much more expensive it will be than just paying for interest alone (which is known as simple interest).


As we’ve seen, there are many different types of loans and mortgages available to homebuyers today. Some are better than others, but it’s important to understand what all these terms mean before you decide on one. 

A lot of property buyers agent gold coast make the mistake of relying too much on their real estate agent or mortgage broker for this information—but ultimately, it’s your responsibility to educate yourself about finances so that you can make an informed decision about how much house you really need and what kind of financing options are available!

Related Posts

The Ultimate Guide to Finding Your Perfect Match Among Houses for Sale

The Ultimate Guide to Finding Your Perfect Match Among Houses for Sale

Your Ultimate Guide to Scoring the Best Deals on Houses for Sale

Your Ultimate Guide to Scoring the Best Deals on Houses for Sale

Why a Local Real Estate Service is Crucial for Property Transactions?

Why a Local Real Estate Service is Crucial for Property Transactions?