Glossary and Terms

Below is a glossary of terms used by Calm Sea. These terms are commonly used in the context of real estate, investments, and financial analysis.

The total value of an asset or investment, which includes the current market price multiplied by the number of units owned.

Current equity which is the difference between total value and total debt. It represents the amount of ownership in an asset after accounting for any liabilities or debts associated with it.

The total amount of money borrowed or owed, which includes all outstanding loans, mortgages, and other financial obligations associated with the asset.

Loan-to-Value Ratio (LVR) is a financial term that represents the ratio of a loan amount to the appraised value of an asset, typically expressed as a percentage. It is used by lenders to assess risk and determine the maximum amount they are willing to lend against an asset.

The projected rate at which the value of a real estate property is expected to increase over a specific period, typically expressed as an annual percentage. Forecasts of Growth Rates are based on projection models. These are not predictions and should not be solely relied upon for financial decisions.

The percentage charged by a lender for borrowing money, typically expressed as an annual percentage of the principal amount. It is a key factor in determining the cost of borrowing and the return on investment for lenders.

Adjusted for inflation means that the value of money or an asset has been modified to account for changes in the purchasing power of currency over time, typically using a specific inflation index. This adjustment provides a more accurate representation of the real value of money or assets in today's terms.

The inflation rate is the percentage increase in the general price level of goods and services in an economy over a specific period, typically measured annually. It reflects the rate at which the purchasing power of money decreases, indicating how much more money is needed to buy the same goods and services compared to a previous period.

Cashflow refers to the net amount of cash and cash-equivalents moving into and out of a business, asset or individual over a specific period. It is a measure of liquidity, indicating how well an entity can meet its short-term obligations and fund its operations. Positive cashflow means more money is coming in than going out, while negative cashflow indicates the opposite.

Expenses breakdown refers to the detailed categorization and analysis of an entity's expenditures, providing insights into where money is being spent. It helps in understanding spending patterns, identifying areas for cost reduction, and making informed financial decisions.

Forecasting models are mathematical or statistical tools used to predict future values or trends based on historical data and patterns. These models analyze past performance to generate projections, helping businesses and individuals make informed decisions about future outcomes. These are not predictions and should not be solely relied upon for financial decisions. Seek a licensed financial advisor for advice.

Forecasting models are mathematical or statistical tools used to predict future values or trends based on historical data and patterns. Calculations are based on limited data and assumptions that may not hold true in the future. These models analyze past performance to generate projections.

It is important to regularly update projections as new data becomes available or when significant changes occur in the market or economic conditions. This ensures that the forecasts remain relevant and accurate over time.

The information provided on this website is for informational purposes only and should not be considered financial advice. It is important to consult with a licensed financial advisor before making any investment decisions or relying on forecasting models. The projections and calculations provided are based on assumptions that may not hold true in the future, and past performance is not indicative of future results.