Glossary | Funding

GLOSSARY

Glossary

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There are 9 Terms in this directory beginning with the letter R.
Real Estate
Real Estate is property made up of the land, buildings and natural resources on it.

Recourse Debt
Recourse debt is typically a debt that is backed by a guarantee that the borrower will repay the debt.

Redemption
A Redemption occurs when an investors capital is returned. When investing with Funding.com.au ‘redemption’ occurs when the borrower has repaid their loan. Once the borrower has repaid their loan Funding.com.au will return investors capital.

Refinance
Refinancing is the act of revising the way in which a debt is paid. For example, an individual may replace an older loan with a new loan that offers a more favorable rate or more flexible terms.

Regulation
Regulation, broadly speaking are rules imposed by the government with the intention of managing individuals and company’s economic behavior.

REIT
A REIT, short for Real Estate Investment Trust, is a company that owns or finances real estate for the purpose of producing an income. Funding.com.au is not a REIT as we’re not investing funds into property ownership.

Residential Property
Residential Property is property that is used as a dwelling to house people. It can also be property that is in the process of being built or changed to become a dwelling.

Retained interest
Retained interest is interest that has been paid in advance and is deducted from the Gross Loan Amount.

Risk vs. Return
The Risk v Return trade-off suggests that high risk investments will provide a greater return. And vice-versa