Showing standard financial explanations
Seed Equity
The initial capital you inject in year 0 before acquiring any properties.
Annual Injection
Extra capital you add to the investment each year for a set period.
Injection Years
How many years you will keep adding the annual injection.
Retirement Year
The year you stop active buying and start living off the portfolio.
Forecast Period
Extra years the model keeps projecting after the retirement year.
Cash Reserve
Liquid funds held as a safety buffer against surprises or vacancies.
Buffer Months
Number of months of loan payments you keep as mandatory reserve.
Unit Price
Purchase price of a single property at the time of acquisition.
Purchase Years
Specific calendar years when new properties are bought.
Price Growth
Expected annual percentage appreciation of property values.
Gross Yield
Annual rent collected as a percentage of property value before expenses.
Rent Growth
Expected annual percentage increase in rent prices.
Operating Expenses (OpEx)
The percentage of rental income spent on property maintenance, management, and other non-mortgage costs.
OpEx Factor
Multiplier that converts rental income to expected operating expenses.
Occupancy Rate
Percentage of time a rental unit is occupied by paying tenants.
Property Config
Overrides that let each property have its own unique settings.
Property Portfolio
The complete collection of real-estate assets you own in the model.
LTV (Loan-to-Value)
Loan balance divided by property value, shown as a percentage.
Loan Rate
Annual interest rate charged on property loans.
Term Years
Length of the loan amortization period.
Amortization
Process of paying down both principal and interest on a set schedule.
Extra Prepayments
Optional additional payments to knock down loan principal faster.
Cash Flow
Net cash left after rent, expenses, taxes, and loan payments.
Equity
Property value minus outstanding debt.
Net Worth
Total assets minus total liabilities across the portfolio.
Leverage
Using borrowed money to amplify investment returns.
Debt Service
Total of interest and principal payments due on loans for the period.
Payout Ratio
Share of after-tax profits distributed as dividends.
Payout Schedule
Year-by-year plan of dividend percentages.
Return on Equity (ROE)
Annual profit divided by current equity, shown as a percentage.
Cap Rate (Capitalization Rate)
Net operating income divided by property value.
IRR (Internal Rate of Return)
Annualized return that sets the net present value of all cash flows to zero.
Corporate Tax Rate
Percentage of company profits paid to the tax authority.
Dividend Withholding Tax
Tax deducted from dividends before they reach shareholders.
IMI
Portuguese municipal property tax, ~0.3 %–0.45 % of tax value annually.
AIMI
Additional Portuguese tax on high-value property holdings.
Building Depreciation
A tax deduction that accounts for the wear and tear of building structures over time, typically calculated as a percentage of the building value.
Tax-Efficient Structure
Legal setup designed to minimise tax within the law.
After-Tax Income
Money left after all applicable taxes have been paid.
Tax Shock
Stress-test scenario modelling a sudden change in tax rules or rates.
Scenario
A defined set of input assumptions for the model.
Baseline Scenario
The default reference set of assumptions.
Min Scenario (Pessimistic)
Version using minimum values for all range inputs.
Max Scenario (Optimistic)
Version using maximum values for all range inputs.
Range Value
An input stored with min, max, and central numbers for stress testing.
Scenario Comparison
Side-by-side analysis of multiple scenarios.
Model Result
The output arrays generated from one scenario run.
Key Performance Indicator (KPI)
Metric used to track progress toward strategic goals.
Company Structure
A corporate entity that holds and manages properties.
Personal Investment
Direct ownership of property in your own name.
SPV (Special Purpose Vehicle)
Separate legal entity created solely to own specific assets.
Stress Test
Simulation of portfolio performance under adverse conditions.
Shock Start Year
The first year an adverse scenario is applied in the model.
Shock Duration
How many years the adverse condition lasts.
Stagflation
Scenario with low economic growth and high inflation.
Interest Rate Shock
Sudden, significant move in borrowing rates.
Property Value Fluctuation
Large swing in market prices of real estate.
Occupancy Drop
Extended period of lower tenant occupancy.
Rate Spike
Sharp increase in interest rates, measured in basis points.
Basis Points (BPS)
One-hundredth of a percent (0.01 %).
AIMI Multiplier
Factor applied to boost AIMI tax in a stress scenario.
Underfunded Warning
Alert triggered when projected cash runs negative at any point.
High LTV Warning
Alert triggered when the LTV ratio exceeds a safe threshold.
NHR (Non-Habitual Resident)
Portuguese tax regime granting reduced taxes for newcomers for up to 10 years.
Golden Visa
Portuguese residency permit obtained through qualifying real-estate investment.
Portuguese LLC (Lda.)
“Sociedade por Quotas”, Portuguese limited-liability company.