Glossary Investment — vocabulary in context
Yield, cash flow, capital gains.
22 definitions · 4 clustersView by concept
4 semantic hubs · 22 connected terms
Each cluster groups a central concept and its related terms. Click to explore.
A
Apartment building →
An apartment building is a property comprising several rented dwellings, owned by a single owner to generate rental income, a classic form of property investment.
↳ ↳ ↳
Investment property
An investment property is a property acquired primarily to generate regular rental income, as opposed to a personal residence.
Rental portfolio
A rental portfolio is the set of all properties rented out by an owner or investor, managed as an asset portfolio generating regular income.
Gross yield
Gross yield is the ratio between gross annual rental income and the acquisition price of the property, expressed as a percentage, without deducting charges and taxes.
C
Cash flow →
Cash flow is the difference between cash inflows and outflows over a given period, an essential indicator for assessing the financial viability of a property investment.
↳ ↳ ↳
Rental cash flow
Rental cash flow is the net cash flow generated by a rental property, calculated by subtracting all expenses (loan, taxes, maintenance) from rental income received.
Net yield
Net yield is the ratio between net annual rental income (after deducting all charges) and the total acquisition cost, the most reliable indicator of actual profitability.
Mortgage
A mortgage is a security interest in a property granted to a lender as guarantee for the repayment of a property loan, registered at the mortgage registry.
O
Occupancy rate →
The occupancy rate is the percentage of time a rental property is actually occupied by a tenant, the inverse of the vacancy rate.
↳ ↳
Vacancy rate
The vacancy rate is the percentage of time a rental property remains unoccupied over a given period, a key indicator for estimating potential income loss.
Vacancy
Vacancy is the period during which a rental property is unoccupied between two tenants, constituting a loss of income for the owner.
Other terms
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Debt ratio
The debt ratio is the ratio between debt charges (monthly loan repayments) and household income, generally capped at 33% by credit institutions in Belgium.
Exclusive mandate
An exclusive mandate is a contract by which an owner entrusts the sale or rental of their property to a single estate agent, for a fixed period, excluding any other intermediary.
Nominal yield
Nominal yield is the displayed or apparent yield of a property investment, often calculated in a simplified way without taking into account all actual costs.
Outstanding capital
Outstanding capital is the amount of a mortgage loan still to be repaid at a given time, decreasing as monthly payments are made.
Pre-emption right
A pre-emption right is a legal or contractual right allowing its holder to acquire a property as a priority, under the same conditions as those offered to a third-party buyer.
Property portfolio
A property portfolio is the total set of properties owned by a natural or legal person, valued at their market price.
Rental market
The rental market is the aggregate supply and demand for rental housing in a given geographical area, influencing rent levels and vacancy rates.
Rental profitability
Rental profitability is the overall measure of the financial performance of a rental investment, taking into account yield, potential capital gains and tax advantages.
Rental risk
Rental risk encompasses all uncertainties that may affect the profitability of a rental investment: unpaid rent, vacancy, damage, market changes and legislative changes.
Do not confuse
Cash flow vs Rental cash flow
Cash flow is the difference between cash inflows and outflows over a given period, an essential indicator for assessing the financial viability of a property investment. / Rental cash flow is the net cash flow generated by a rental property, calculated by subtracting all expenses (loan, taxes, maintenance) from rental income received.
Gross yield vs Net yield
Gross yield is the ratio between gross annual rental income and the acquisition price of the property, expressed as a percentage, without deducting charges and taxes. / Net yield is the ratio between net annual rental income (after deducting all charges) and the total acquisition cost, the most reliable indicator of actual profitability.
Gross yield vs Nominal yield
Gross yield is the ratio between gross annual rental income and the acquisition price of the property, expressed as a percentage, without deducting charges and taxes. / Nominal yield is the displayed or apparent yield of a property investment, often calculated in a simplified way without taking into account all actual costs.
Did you know
This glossary contains 22 definitions
Each term is explained in the Belgian legal context, with the specificities of the 3 Regions (Brussels, Wallonia, Flanders). Definitions include practical examples and links to reference articles.
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