Glossary
Australian property flipping glossary.
26 plain-English definitions for the terms that come up when you're researching, buying, renovating and selling property in Australia.
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Acquisition Costs
All costs incurred to take ownership of a property — stamp duty, legal/conveyancing, building and pest inspections, lender fees, and any due-diligence consultants. In Australia these typically run 4-7% of purchase price for an investor.
ARV (After Repair Value)
The estimated sale price of a property after the planned renovation is complete, derived from comparable sales of similar already-renovated properties in the same area.
AVM (Automated Valuation Model)
A statistical model that estimates a property's value from sale data, suburb metrics and property attributes — no physical inspection. Useful as a first-pass figure; not a substitute for a desktop valuation or comp study.
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Capital Growth vs Cashflow
The two main ways a property investor profits: capital growth is the increase in resale value over the hold; cashflow is the net rental income above all holding costs. Most AU markets favour capital growth historically; cashflow positive deals are harder to find but more resilient.
Comparable Sales
Recent sales of similar properties in the same area, used as the basis for valuing a target property. For a flip, you want comps that match your post-renovation condition, not the as-is state of the subject property.
Cooling-Off Period
A statutory window after exchange of contracts during which a private-treaty buyer can rescind, with a small penalty (usually 0.25% of the price). Length varies by state — NSW 5 business days, VIC 3 business days, QLD 5 business days. Auctions waive the cooling-off period.
Cosmetic Renovation
A renovation that doesn't move walls or alter services — paint, kitchen, bathroom, flooring, landscaping. No DA usually required, fastest turnaround (6-12 weeks), lowest risk, smallest uplift.
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Disposal Costs
All costs to sell a property — agent commission (usually 1.8-2.5%), marketing, legal/conveyancing, auctioneer fee if applicable. Typically 3-4% of sale price for an Australian investor.
Distressed Property
A property where the seller is under financial or personal pressure to sell quickly — mortgage default, divorce, deceased estate, urgent relocation. Typically priced 10-25% below market, but require fast settlement and tighter due diligence.
Dual Occupancy
Two dwellings on the same lot — either attached (duplex) or detached. Permitted in many AU residential zones subject to lot size and frontage minimums in the LEP. Adds rental income or resale value without subdivision.
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Granny Flat
A self-contained secondary dwelling on the same lot as a main house. In NSW, can be built under SEPP (Affordable Rental Housing) up to 60m² without a full DA on lots ≥ 450m². Adds rental income or resale value.
Gross Rental Multiplier (GRM)
Property price divided by annual gross rent. A quick screening metric: lower GRMs indicate stronger cashflow; higher GRMs indicate growth-oriented markets. Australian metro GRMs typically sit 18-25; regional GRMs 12-18.
GST Margin Scheme
An ATO mechanism for calculating GST on property sales by a registered enterprise — GST is paid on the margin (sale price minus purchase price) rather than the full sale price. Common on subdivisions and developments. Confirm eligibility with an accountant.
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Section 32 (Vendor Statement)
The pre-contract disclosure document required of a Victorian vendor, covering title, mortgages, easements, planning and overlays. Equivalent to a vendor's statement in other states. Required reading before signing.
Splitter Block
A residential lot large enough to subdivide into two (or more) smaller lots, each capable of being sold separately or built on. Typical AU splitter sizes: 600-1,200m² depending on the LEP and frontage rules.
Stamp Duty
A state government tax on property transfers. Rates and thresholds vary by jurisdiction; investor rates typically 4-5.5% of purchase price in metro AU. First-home buyers may qualify for concessions or exemptions.
Structural Renovation
A renovation involving wall moves, structural changes, services replacement (plumbing, electrical) or extensions. Almost always requires a DA (development application) and runs 4-8 months.
Subdivision
Splitting one lot into two or more separately titled lots — Torrens (separate freehold titles) or Strata (shared common areas). 12-18 month process in most AU councils; significant uplift if comps and council policy align.