5 Real Estate Terms You Must Know Before Investing


If you are a newbie in the real estate investing world, you might want to learn the common terminologies used by real estate marketers. Whether you are planning to diversify your investment portfolio or make your first real estate investment. This blog is published by team Rajinder Dhutti- one of the best Real Estate investors in Fraser Valley so that the next time you hear terms like FSI, ROI, or BSP, you would know what it means and its significance.

1 BSP and MV:

Basic Selling Price (BSP) or Market Value (MV) means the base rate per sq ft at which the house/apartment is listed for sale by the seller. It is not inclusive of the additional charges or taxes, amenity charges, preferential location charges, or other maintenance fees.

2 Cash Flow:

Cash flow means the net amount of money a person earns every month from a property after deducting all the operating costs. It refers to the net difference between money incoming and outgoing out from an asset. When this income is more than the expenses, your investment is profitable and maintains a positive cash flow.

3 HOA:

HOA or Homeowner’s Association is a self-governing organization consisting of a group of homeowners in a particular subdivision, HOA or Homeowner’s Association is a self-governing organization consisting of a group of homeowners in a particular subdivision, apartment or planned housing community. HOA can enforce rules for maintaining the properties in good condition. It can also collect monthly maintenance fees from the owners. When a person buys a property within a particular HOA, they become a member of the association and will be required to pay the HOA charges.

4 Turnkey Property:

A turnkey property refers to a home or apartment that is close to or in a ready-to-move-in status. Turnkey properties allow the investors to start renting it out without waiting for long and have a high demand among investors. The owners need not have to do any kind of major renovation or repair works as these properties are newly built.

5 Built-up areas and Carpet areas:

Built-up area means the entire floor area of the home or the apartment. This includes the carpet area, internal & external wall thickness along the balcony area. The carpet area is known as the net usable area of an apartment. This does not include the area covered by the external walls, areas under services shafts ,or balconies. However, this does include the area covered by the internal partition walls of the apartment.

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2 thoughts on “5 Real Estate Terms You Must Know Before Investing

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