Real English: Vocabulary to talk about real estate

hi welcome to incovid.com i'm adam in today's  video i want to give you a bit of an introduction  

into the world of real estate okay now i'm  not going to get too technical with real  

estate terms but what i am going to talk  about are the differences between renting  

property and buying property okay now this is  especially useful for people who are considering  

emigrating to an english-speaking country and  you're not sure you know what are your options  

what you want to do or even if you're already  in an english-speaking country and you want to  

move out of your dorm move out of your family  your uncle's basement etc you have to understand  

the words you're going to come across when you're  making your decision okay so we're going to look  

at renting or leasing a place and we're going to  look at buying a place a property so let's start  

with renting you have two options when you want  to get a place that without buying it you can rent  

rent means you're paying month to month and you  can leave whenever you want lease means you're  

signing a contract for a specific amount of time  usually one year maybe two years at the end of  

the lease you can either become a renter or you  can sign a new lease for another set term at a  

set fixed price of monthly payments now if you  already rent a place or you're already leasing  

a place and maybe you want to go away for a long  vacation or you want to go somewhere for a year  

to work or study but you want to keep your  apartment or your condominium or your house you  

can sublease or sublet they essentially mean the  same thing means that you rent or you lease your  

apartment to someone else so that person will  pay you and you will pay the original owner or  

whatever the situation is and continue that way  now when you rent a place generally you have to  

give a deposit this is a certain amount of money  that you give the landlord or you give the owner  

to make sure that you always make your payments  if you miss a payment they will take it from your  

deposit if you cause any damage to the property  they will take that money from your deposit if you  

leave at the end of your term if you're at the end  of the rental and you've paid all your bills and  

you haven't damaged the house you get that money  back that deposit back usually with interest  

now in many places the deposit is essentially  first and last so you're paying your first  

month's rent and your last month's rent if you  miss a payment along the way they take that  

last month as the payment and then you owe them  again for the last the final month of your stay  

now when you generally speaking when you get  assigned a lease you're signing a contract  

in many places they also make you sign a contract  for a rent just for their protection for your  

protection a contract is a written paper agreement  between you and the owner of the property  

with certain rules for both sides again it's  for everybody's protection now if you break  

the contract if you break any of the rules if you  leave before the time expires or if you do some  

damage or if you break some if you don't follow  the rules then you are in breach of contract and  

this is a very big deal because then the owner of  the property will will proceed with or will begin  

litigation litigation basically means legal  action they will take you to court they will  

take a lot of money from you for the money you  owe them plus the time they're spending plus the  

lawyers they're hiring it can be very expensive  for you if you reach the contract because then you  

are a liability you are something that is costing  money you are a risk so you don't want to do that  

now if you do break the rules or if you do breach  the contract the owner can evict you to evict  

means to kick out they can make you leave the  property and where you go not their problem so  

make sure you follow the rules make sure you  make your you pay your monthly bills otherwise  

some of them if they don't evict you  means it's kick you out they might  

ask you to vacate they will say okay your lease  is ending next month we don't want to sign a new  

lease with you please vacate the property by  the end of next month just leave evict means  

they're kicking you out there's probably going to  be some litigation vacate they're just telling you  

that at this time you have to leave and that's  all there is to it now when you're looking for  

an apartment or a condominium you have to look for  buildings that have vacancy means somebody vacated  

there is an empty unit and you can move in if  you go to a building and you see a sign that says  

no vacancy that means they don't have any empty  units they don't have any suites for you you  

have to look somewhere else okay now when you are  renting or leasing you are a tenant you are living  

there you are paying monthly bills and you are  a tenant you have no ownership rights basically  

now when it comes okay i'll get to that in a  second let's go to the owning a property now  

if you have enough money and you can pay the full  amount you just buy the place generally speaking  

most people don't do this it doesn't actually make  sense to you it's better to put down a certain  

amount of down payment 20 30 percent however much  and then pay off the property over a period of  

time okay when you when that happens you get a  loan from the bank which is called a mortgage no  

t sound more gauge and the g a g sounds like g  i j sound mortgage now when you get a mortgage  

you pay the bank every month and you're paying  two parts of this loan you're paying the principal  

which is the amount that you actually borrowed so  if you borrowed let's say half a million dollars  

every month you're paying a certain amount let's  say two thousand dollars maybe one thousand is  

the principal that goes to the half million that  you borrowed and one thousand is interest which  

is basically the profit for the bank that you  will never get back but hopefully the value of  

your property goes up and you get that money  back anyway now if you end your mortgage early  

that's called an early termination okay you can  also say early termination for a lease but then  

it's already a breach of contract when you when  you end a mortgage agreement early the bank will  

say yeah no problem it's your house you can do  whatever you want but you will pay a penalty

you will have to give the bank some money  because they're losing money because of you  

because they went through all the paperwork they  did all the stuff they need to get paid if you  

leave the mortgage early if you own property you  pay property tax okay if you're renting you don't  

pay property tax the owners do again make sure  that wherever you live you find out the rules  

because it may be different i know that in some  places renters pay the property tax not the owners  

so make sure you find out in canada for example  owners pay the property tax renters don't now  

occupancy basically this is the day that you're  allowed to move into your place if you bought  

a place that's brand new they have to maybe  finish doing some building and then you can  

occupy the house or the apartment on a  particular day and then you are the occupant

when you own a place you're the occupant when  you're renting you're a tenant so a little bit  

different terminology now a lot of people  get confused between real estate and estate  

your estate means everything that you  own your house your car your computer  

your furniture your jewelry all of  this is your estate the real part

the real part is just property house apartment  condominium etc now there are different types  

of real estate there's residential that's  where people live that's where they reside  

okay and that's right there to reside means to  live in a place and commercial stores factories  

industrial situations these are all commercial  real estate now when you're renting a place  

then you generally have a landlord it could be the  owner or it could be just someone that the owner  

hired to run the place a lot of buildings  if you're living in a condominium or  

an apartment will have a superintendent  now generally an apartment will have a  

superintendent in a condominium it's the same  thing but they call it a property manager  

okay when you own the place if you own a  house you are the property manager if you  

own the condominium you still have a property  manager who takes care of all the common areas  

the common areas are the hallways the elevators  the lobby the gym whatever features the building  

has okay and a superintendent is the person who  cleans up the apartment make sure everything's  

working properly if the if the elevator breaks  the superintendent will call the technician to  

fix it etc okay now when you're going to look for  an apartment you can go by yourself to a building  

and find out if they have any units or you can  go through an agent a real estate agent or a real  

estate broker a broker usually buying and selling  an agent is buying selling and renting they'll  

find you a place and they'll find tenants for  the owners brokers and agents work on commission  

so they take a percentage of the of the deal  if you buy a house the agent will take the real  

estate agent will take three four five percent  of the total cost so that could be a big chunk of  

money agents and brokers for renting they'll take  a certain fee okay so they'll work on and you'll  

have to find out what that is with different  agencies okay so again basic introduction this  

will help you make some decisions and when you go  talk to agents and when you go talk to landlords  

you'll know hopefully what they're talking about  because you've learned this vocabulary if you have  

any questions about any of this please go to  inkvid.com and ask me in the comments section  

there's also a quiz to make sure you can review  and test your understanding of these words  

and that's it if you like the video  please give me a thumbs up and a like  

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vocab to let you get ready for your new life in an  english-speaking country okay until next time bye