Last updated: May 19, 2026
Glossary of Investment Terms
Understanding financial terminology is essential when evaluating investment opportunities. Below are key terms used throughout our platform, with definitions aligned to Australian regulatory requirements under the Corporations Act 2001 (Cth).
AFSL Holder
An entity that holds an Australian Financial Services Licence, authorizing them to provide financial services. The platform aggregates opportunities from multiple AFSL holders.
Corporations Act 2001 s913B
Body Corporate / Owners Corporation
The legal entity that owns and manages the common property of a strata scheme — including lifts, lobbies, driveways, gardens and shared services. Each lot owner is automatically a member, pays quarterly levies, and votes on matters such as repairs, insurance and by-laws.
Strata Schemes Management Act 2015 (NSW). Equivalent legislation applies in each state and territory.
Capacity
The maximum total amount of investment a deal can accept. Once capacity is filled, the opportunity closes to new investors.
ASIC Regulatory Guide 240
Cooling-Off Period
A statutory window after signing a contract for sale of land during which a purchaser may rescind the contract and recover most of their deposit. Length differs by jurisdiction and contract type; cooling-off rights do not apply at auction or where waived in writing.
Conveyancing Act 1919 (NSW), s 66W. Equivalent legislation applies in each state and territory.
Deposit (Property)
The portion of the purchase price paid at exchange of contracts (typically 10%), held in a trust account by the vendor's agent or solicitor until settlement. Forfeitable to the vendor if the purchaser defaults; refundable on lawful rescission.
Conveyancing Act 1919 (NSW); Property and Stock Agents Act 2002 (NSW), s 86 (trust account obligations). Equivalent legislation applies in each state and territory.
Development Approval (DA)
The formal consent granted by the local council (or other consent authority) permitting a development to proceed, subject to specified conditions. "DA approved" means construction can lawfully commence within the conditions of the consent.
Environmental Planning and Assessment Act 1979 (NSW). Equivalent planning legislation applies in each state and territory.
Foreign Investment Review Board (FIRB)
A Commonwealth body that reviews and approves acquisitions of Australian land and businesses by foreign persons. Non-resident purchasers of Australian residential property generally require FIRB approval before exchange of contracts.
Foreign Acquisitions and Takeovers Act 1975 (Cth); Foreign Acquisitions and Takeovers Regulation 2015 (Cth).
General Advice
Financial product advice that does not take into account your personal objectives, financial situation, or needs. You should consider whether the advice is appropriate for your circumstances.
Corporations Act 2001 s766B(3)
Gross Income
Total income before taxes and deductions. A gross income of at least $250,000 per annum for each of the last two financial years is one criterion for sophisticated investor classification under Australian law.
Corporations Act 2001 s761GA
Income Consistency
Income must meet the $250,000 threshold for each of the last 2 consecutive financial years, not just one.
Corporations Act s761G(7)(a)
Investment Amount
The price of the financial product being acquired in a single transaction.
Corporations Act s761G(7)(b)
Loan-to-Value Ratio (LVR)
The ratio of a loan amount to the appraised value of the secured property, expressed as a percentage. A higher LVR generally means a smaller deposit, higher lender risk, and may require lender's mortgage insurance.
APRA Prudential Standard APS 220 (Credit Risk Management); National Consumer Credit Protection Act 2009 (Cth).
Minimum Investment
The lowest amount that can be invested in a particular opportunity. This threshold helps ensure investors meet the requirements for wholesale or sophisticated investor classification.
Corporations Act s761G(7)(b)
Net Assets
The value of an individual's assets minus their liabilities. Under ASIC guidelines, net assets of at least $2.5 million (excluding the family home) is one criterion for sophisticated investor classification.
Corporations Act 2001 s761GA
Off-the-Plan
A contract for the sale of land or apartments that have not yet been built or registered as separate lots. The purchaser pays a deposit at exchange and the balance at settlement, which occurs after the development is complete and titles are registered.
Conveyancing Act 1919 (NSW), Sch 3 (off-the-plan contracts); Conveyancing (Sale of Land) Regulation 2017 (NSW). Equivalent legislation applies in each state and territory.
Product Disclosure Statement (PDS)
A document that must be given to retail clients when they acquire financial products. It contains information about the product's features, benefits, risks, and fees.
Corporations Act 2001 s1013A
Rental Yield
The annual rental income generated by a property, expressed as a percentage of either its purchase price (gross yield) or its purchase price plus ongoing costs (net yield). Used to compare income performance across residential properties.
Industry term used in residential property valuation. No specific statutory definition.
Settlement (Property)
The completion of a property purchase, at which the balance of the purchase price is paid, title is transferred to the purchaser, and possession is given. Settlement dates are fixed in the contract and may be a specific date or tied to registration of the strata plan.
Conveyancing Act 1919 (NSW); Real Property Act 1900 (NSW). Equivalent legislation applies in each state and territory.
Sophisticated Investor
An investor who meets certain wealth or income thresholds, or has sufficient investment experience to understand and bear investment risks. They may access investment opportunities not available to retail investors.
Corporations Act 2001 s761GA
Stamp Duty (Transfer Duty)
A state or territory tax payable by the purchaser on the transfer of dutiable property, calculated on the purchase price or market value. Rates, thresholds and concessions (e.g. first-home buyer, foreign-purchaser surcharge) differ between jurisdictions.
Duties Act 1997 (NSW). Equivalent duties legislation applies in each state and territory.
Strata Title / Strata Scheme
A form of land title that divides a parcel of land into individually owned lots (apartments) and shared common property managed by an owners corporation. Each lot has its own title and may be sold, leased or mortgaged independently.
Strata Schemes Development Act 2015 (NSW); Strata Schemes Management Act 2015 (NSW). Equivalent legislation applies in each state and territory.
Sunset Clause
A provision in an off-the-plan contract permitting either party to rescind if the development has not been completed (or strata plan registered) by a specified "sunset date". Vendor-side rescission is restricted in NSW to prevent developers cancelling contracts to re-sell at higher prices.
Conveyancing Act 1919 (NSW), ss 66ZL–66ZS (sunset clause provisions). Equivalent legislation applies in each state and territory.
Target Return
The projected or expected return on an investment, typically expressed as a percentage per annum. Target returns are not guaranteed and actual returns may vary significantly.
ASIC Regulatory Guide 234
Wholesale Client
A client who meets the financial thresholds or professional investor criteria under the Corporations Act, allowing them to receive financial services without certain retail client protections.
Corporations Act 2001 s761G
These definitions are provided for informational purposes only and should not be considered legal or financial advice. Please consult with a qualified professional for advice specific to your circumstances.