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Equity: Is the difference between what your home is worth and how much you owe on it.  For example if your home is worth $300,000 and you owe $100,000, you have $200,000 equity.

Negative Gearing:  Is when the annual cost of your investment is more than your return, so you will need to fund the shortfall. You may be able to offset that shortfall against other assessable income.

Positive gearing: Where the income from your investment property is greater than your expenses. The excess amount may be added to your assessable income.

Strata title: The legal ownership of an apartment complex and individual units. In most cases all unit holders have joint ownership of the common property with all other lot owners in the strata scheme and separate ownership of their unit.

Stamp duty: A state government charge payable on both the purchase price of the property you are buying and the amount you borrow on your home loan.

Capital Gains Tax: The tax you pay on any gain you make when you sell your investment property for more than you purchased it. If you owned the property for more than 12 months you may be entitled to a discount rate of tax versus your marginal income tax rate.

Rental Yield: The annual rent you receive from your property. This will usually be around 3 to 4% of the capital value of the property.

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Why choose IMB Bank?

Established in 1880, IMB has been helping people achieve their financial goals for 140 years. IMB offers a full range of banking solutions including home and personal lending, savings and transaction accounts, term deposits, business banking and can arrange financial planning, insurance and travel products.

IMB has a growing branch network throughout the Illawarra, Sydney, NSW South Coast, the ACT and Melbourne. We have a lending specialist in every branch and a team of mobile lending specialists who will come to you. IMB members enjoy access to free automated phone and internet banking and a team of professionals who are just a phone call away at our locally based call centre.

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