Borrowing money to invest where the return from the investment is less
than the borrowing costs. For example, the rental income from your
investment property is less than the interest payments on the
loan used to purchase the property.
The value of assets less liabilities, often expressed as a per
unit or per share value. For example, the net asset value of a managed fund or exchange-traded fund per unit would be
calculated by subtracting the fund's liabilities from the fund's
assets and dividing the result by the number of units on offer.
The difference between the total value of everything you own
(assets), and the total value of all of your debts
Protects you from owing more on your reverse mortgage
than your home is worth. The NNEG puts a limit on the amount
A community program that provides interest-free loans for
individuals or families on low incomes.
Guides your super fund trustee on who will get
your super if you die. The trustee is not bound to follow these
An income stream that cannot be converted into a lump sum
Non-concessional super contributions are payments you put into
your super from your savings or from income you have already paid
tax on. They are not taxed when they are received by your super
A type of loan secured by collateral such as property or shares,
where if the borrower defaults the lender can only seize the assets
put up as collateral for the loan. The lender cannot seek further
compensation from the borrower even if the assets used as
collateral do not cover the full amount of the loan.
Last updated: 29 Jul 2015