Investor Services Explained

Bond. A security deposit the tenant pays before moving in, usually equal to four weeks' rent. It's held by the Residential Tenancies Authority (RTA), not the landlord or the agent, and it's returned to the tenant at the end of the tenancy provided the property's left in the condition it should be.

RTA (Residential Tenancies Authority). The Queensland government body that holds bonds and oversees the rules around renting in this state. If a bond dispute needs resolving, this is who's involved.

Periodic lease vs fixed-term lease. A fixed-term lease runs for a set period, six or twelve months is common. A periodic lease has no end date and continues until either the landlord or tenant gives proper notice to end it.

Negative gearing vs positive gearing. A property is negatively geared when the costs of holding it, loan interest, fees, maintenance, are more than the rental income it brings in. It's positively geared when the rental income is more than the costs. Which one applies to your situation, and what it means for your tax, is a conversation for your accountant.

Rental yield. A way of measuring the return a property generates from rent, usually shown as a percentage of the property's value. You'll sometimes hear "gross yield" and "net yield," gross is before expenses are taken out, net is after.

Depreciation schedule. A report, prepared by a quantity surveyor, that sets out how much the building and its fixtures are expected to decline in value over time. Investors use it at tax time, worth asking your accountant whether one applies to your situation.

LVR (Loan-to-Value Ratio). How much you're borrowing compared to the value of the property, shown as a percentage. A lower LVR generally means you're borrowing less against the property's value.

LMI (Lender's Mortgage Insurance). An insurance premium a lender may require if you're borrowing a large percentage of a property's value. It protects the lender, not the borrower, and is usually added to the loan itself.

SMSF (Self-Managed Super Fund) and LRBA (Limited Recourse Borrowing Arrangement). An SMSF is a super fund that its own members manage themselves, rather than a large retail or industry fund managing it for them. An LRBA is the structure that's allowed some SMSFs to borrow to buy a single property, with the lender's claim limited to that property if things go wrong. Worth knowing: from 10 August 2026, SMSFs can no longer set up a new LRBA to buy residential property, though existing arrangements aren't affected, and a fund can still buy residential property outright using cash it already holds. Anything specific to your own fund belongs with a licensed financial adviser or SMSF specialist, not us.

Torrens title vs strata title. Torrens title means you own the land and everything on it outright. Strata title (sometimes called body corporate title) means you own your individual unit or townhouse, and share ownership of common areas, like driveways or gardens, with the other owners.

Body corporate. The collective group of owners in a strata-titled complex, responsible for managing and maintaining shared areas. If you own a unit or townhouse, you're likely part of one, and you'll usually pay body corporate levies to cover shared costs.

Vacancy rate. The percentage of rental properties sitting empty in a given area at a given time. A low vacancy rate generally means strong demand from tenants, a high one means more competition to find one.

Rental appraisal vs valuation. A rental appraisal is an estimate of what a property could rent for, usually done by a property manager based on the local market. A valuation is a formal assessment of a property's worth, usually required for finance, and needs to be done by a licensed valuer. They're not the same thing, and one doesn't substitute for the other.

Vendor. The person selling the property. If you're buying, the vendor is who you're ultimately negotiating with, even though you're usually dealing with their agent.

Cooling-off period. A set window after signing a contract during which a buyer can withdraw, usually with a small penalty. How it applies depends on the type of sale, so it's worth confirming with your solicitor or conveyancer before you sign anything.

Off-market. A property that's for sale without being publicly advertised. These sales rely on an agent's existing networks and relationships rather than a public listing.

Contract of sale vs settlement. The contract of sale is the legal agreement both parties sign when a sale is agreed. Settlement is the day ownership actually transfers, funds change hands, and keys are handed over. There's usually a gap of several weeks between the two.