Hey everyone! This is Jennie from Real
Estate English Academy, the place for
real estate experts to boost their
English! Today's lesson is all about
improving your vocabulary from A to Z.
Ready? Let's get started!
As we all know in today's world it's
absolutely necessary for real estate
experts to be able to communicate
professionally in English. This channel
is dedicated to the language needs of
real estate professionals who work
around the world and need to be
confident and fluent in English when
talking to clients colleagues or when
doing things like giving presentations.
That's why I've put together some of the
most important real estate vocabulary,
going through the alphabet from A to Z,
to make your life easier whether you're
at the office or out in the field and
have to communicate in English.
Real estate vocabulary covers a wide spectrum.
There are words that describe different
properties and different locations or
that relate to investment and financing,
property management, building technology
leasing and renting and much more.
To make your life a little bit easier, I've
picked out some of the most common words.
You'll also find a time stamp in the
video description below. That way you can
go back again and again and review the
words that are most valuable to you.
And of course, don't forget to subscribe to
this channel and hit the bell button to
turn on notifications. And as a bonus,
I've also included a link to a free quiz
so that you can test how well you know
the real estate vocabulary covered in
this lesson.
Ok, let's dive right in and start with the letter
In the real estate
context the term "asset" typically refers
to a real estate property that is held
by an investor or an investment fund.
International real estate investors
often times hold many assets including
residential, retail or office properties
in different countries.
Ok, let's move on to the letter
Basically in this situation, the owner and the future
tenant come to an agreement, which is
usually fixed in a contract, that the
owner or developer will build the
property exactly to fit the tenants
needs.
On to letter
The CBD, which is short for central business
district, typically consists of a variety
of high-rises and landmark buildings as
well as shops, restaurants and other
recreational offers like theaters and
museums.
Let's move on to
In other words they were
unable to service the debt outstanding
on their homes. It's in the nature of
real estate markets that they experience
ups and downs, and, in times of economic
stress, many home owners may default and
have to sell their homes, sometimes even at a loss.
We just learned what happens when
homeowners are in default. If tenants
are late on their rental payments, they
could get evicted. Typical reasons for
getting evicted include non-payment of
rent, unlawful use of the rental property
or a violation of health and safety
codes. Tenants receive an eviction notice
from their landlord and then have to
vacate, or leave, the property at a set
date.
Now let's move on to the letter
When buyers
look into purchasing a property, they
want to know about the layout of the
space. The floor plan provides them with
an overview of just that. In a built-to-suit project, the investor can determine
what the floor plan should look like so
that it meets the requirements of the
intended use.
Greenfield sites basically refer to land
that is undeveloped and can be built on
without having to remove or demolish
existing buildings.
Next up is the letter
The holding period basically
refers to the period between when an
investor purchases an asset and sells it.
On to letter
In the real estate world the term "income" typically
refers to the amount of money collected
by a landlord from a tenant or group of
tenants for using a particular space.
You might hear a portfolio manager say
Within the scope of large property developments, several
parties may join together for a certain
project. Typically the reason behind
this temporary partnership is to share
the associated project risk, which is
usually financial, or to combine their
expertise to get the best outcome.
That means that when asset managers look
at quantifiable data, such as rental
income, tenant quality and lease terms,
things have gotten better compared to
the previous year. This could be due to
market factors, such as rents going up in
a particular region, or property specific factors.
What's the difference? Is there a difference? Well, the answer is
clear. Yes and no. Make sense? Ok, let me
shed some light on this.
The term "lease" is predominantly used in
the US. The term "let" is used in the UK.
Another
interesting point in lease agreements
the landlord is sometimes referred to as
the lessor and the tenant as the lessee.
The fair market value of a property is
usually determined by appraisers.
Appraisers use different valuation
techniques to determine fair market
value for buying or selling a property.
Appraisers usually use available market
data and comparables to determine what
the current fair market value is of that
property. I'll go into more detail on
valuation methods when we get to the
letter V.
Next up is
Occupancy rate is a KPI that
describes the leasing performance or
take-up of a property. A high occupancy
rate combined with above-market rents
from strong-covenant tenant
and long these terms makes an asset
attractive and drives up its value when reselling.
In real estate, "premises"
basically refers to the land and
buildings that a business occupies as an
owner or a tenant and that they use to
conduct business activities.
Another
common phrase is year over year, which is
used to contrast performance on a yearly
basis in market reports. The phrases
quarter over quarter or year over year
are often abbreviated as qoq or yoy.
Real estate investors take rent control
regulations into account in their
investment decisions as these provide a
legal framework and limitations for rent
increases.
Both of these
examples indicate that the current
supply of properties in these markets is
tight. In real estate markets, the forces
of supply and demand interact with each
other to determine the price of real
estate. If there's low supply and high
demand, property prices tend to rise. In
contrast, if there's low demand at high
supply, prices tend to fall.
Take-up basically refers to space that is
physically occupied by tenants or owner-occupiers.
There are several
factors that determine a property's
upside potential like location, amenities
and potential increase of rental income.
The opposite of upside potential is
downside risk. Real estate investors
carefully analyze a property's upside
potential compared to its downside risk
before making an investment decision.
Let's move on to
Valuations are generally prepared when a
property is being purchased or sold or
as a basis for taking out a loan for
financing or securing a mortgage.
Valuations may also be required for
insurance or tax reasons. The term
valuation is more common in the UK and
the term appraisal is typical in the
US.
Let's move on to
and it's not
considered a problem wear and tear
includes floors in need of basic
maintenance, faded carpets and chipped paint.
The multiplier "x" is turned into the word
"by" in spoken language. In order to find
out the square footage of the storage
space, you need to multiply 8 by 10 and
you'd have your result, eighty square
feet. The term square feet by the way is
abbreviated like this in written texts.
Yield can also be a
measure of the overall supply and demand
situation on a given market. When demand
is high and supply is low, yields
typically decline. This situation is also
referred to as yield compression.
And now for our final letter
Zoning can be divided into
residential, commercial, industrial and
agricultural. Zoning typically imposes
height limitations on structures to
protect other property owners. There
might also be restrictions on how many
of a certain type of structure can be
built in an area as well as on pollution
and noise levels.
Congratulations! We've
gone through the entire alphabet from A
to Z! I hope this video has given you a
ton of valuable information. As you know,
this is just the tip of the iceberg and
there's so much more vocabulary to cover,
but I can only do so much in one video.
So, if you have any real estate
vocabulary or topics you'd like to learn
more about, let me know in the comments.
I'd love to find out which topics are
most relevant to you. And don't forget to
test your real estate English skills and
take the quiz that's linked in the
description box below. And, as always, if
you liked this video, don't forget to hit
the like button and click on subscribe
if you haven't already. Thanks for
watching. See you next time!
 
