Property Investment Glossary

Capital Gain
This is the amount of money your property has increased in value by.

For Example: if you purchase your property for £200,000 and you later sell it for £250,000,you would have made a £50,000 Capital Gain.
Capital Gains Tax
This is the tax that is owed to the government when you make a Capital Gain on your home. We do not provide Tax advice, so you should always seek independent tax advice.
Champion
This is you! This is what we call the person who will be investing into a home whilst also living in it.
Default
This is the word we use when you have failed to pay your rent on time.
Equity
This is value you hold in your home.

For Example: If your home costs £200,000 to purchase and you paid £10,000 towards your home during your CrowdtoLive property purchase, you will own 5% of the property.

Your equity in this example would be 5% of the property, or £10,000!
Investors
These are the people who will purchase your home with you.
Market Rent
This will be the average amount of rent charged for a property similar to thehome you are purchasing, in the same area as your home.
Special Purpose Vehicle (SPV)
This is the legal entity (company) that we set up for you, to allow you and the other investors to complete your home purchase.
Stamp Duty
This is the tax that you have to pay to the government when you purchase your home.
Vendor
This is the seller - the person who you will be buying your home from.

Glossary