Australian housing glossary

The weekly rent a landlord advertises for a property. It can differ from the rent finally agreed in the lease. The rents on this site are asking rents from SQM Research.

Money a tenant pays at the start of a lease as security against unpaid rent or damage. In most states it is lodged with a government bond authority rather than kept by the landlord, and the maximum amount is set by state rules.

How much a lender is prepared to lend you, based on your income, expenses, debts and the serviceability buffer. Lenders each calculate it differently.

The increase in a property’s value over time. Together with rental income it makes up the total return on an investment property.

A single interest rate that includes the loan’s interest rate and most of its fees and charges. In Australia it is calculated on a standard example loan, so it helps compare loans but may not match your own loan exactly.

The legal work of transferring a property from seller to buyer, done by a conveyancer or solicitor. Its cost is one of the upfront costs of buying.

A local government area: the area a council administers. This site groups suburbs and postcode rents by the ABS 2021 council boundaries.

The part of a property’s price you pay from your own money; the rest is borrowed. A deposit of 20% or more usually avoids lenders mortgage insurance.

The value stamp duty is calculated on, usually the higher of the purchase price and the property’s market value.

The share of a property you own outright: its value minus what you still owe on the loan.

A reduction in, or exemption from, stamp duty for eligible first home buyers. Every state and territory has its own scheme, thresholds and conditions; check your revenue office.

A lease for a set period, such as 12 months. During the term, rent can generally only change if the lease allows it.

A year’s rent divided by the property’s price, as a percentage, before any costs. $600 a week on a $750,000 property is a gross yield of about 4.2%.

A loan repayment that covers only the interest, so the balance does not fall. Repayments rise when the interest-only period ends.

Insurance that protects the lender, not you, if a borrower defaults. It usually applies when you borrow more than 80% of the property’s value, and the borrower pays for it.

The loan as a percentage of the property’s value. A $600,000 loan on a $750,000 home is an LVR of 80%.

The middle value when all figures are sorted: half are higher and half lower. A median house price describes the middle sale, not any particular home.

When an investment property’s costs, including loan interest, are higher than its rental income. The loss can generally be deducted from other income for tax; get tax advice for your situation.

Rent minus running costs such as management fees, rates, insurance, maintenance and strata, divided by the price. It is always lower than the gross yield.

A transaction account linked to a home loan. Its balance is subtracted from the loan when interest is calculated, reducing the interest you pay.

A lease that continues without a fixed end date, often after a fixed term finishes. Rent increases and ending the lease follow your state’s rules.

Rents on this site are reported by postcode, so suburbs that share a postcode share the same figures. The ABS maps postcodes as Postal Areas, which approximate the postcode boundaries.

A lender’s conditional indication of how much it would lend you, given before you find a property. It is not a final loan approval.

A loan repayment that covers the interest and part of the loan itself, so the balance falls with each repayment until it is repaid.

A loan feature that lets you take back extra repayments you have made above the required amount.

Commonwealth Rent Assistance: a payment to eligible renters who receive certain government payments. Eligibility and rates are set by Services Australia.

Commonly used to describe lower-income households (the bottom 40% by income) that spend more than 30% of their gross income on housing.

The margin lenders add to the interest rate when checking whether you could afford a loan, currently at least 3 percentage points above the loan rate.

A state or territory tax paid when you buy property, calculated on the dutiable value. Each state has its own rates, names and concessions.

Fees owners of units and townhouses in a strata scheme pay for shared building costs such as insurance, maintenance and a sinking fund.

The share of rental properties that are empty and available. A low vacancy rate means more competition for each listing and usually upward pressure on rents.