Generally, physical changes which enhance the capital value of land or buildings. These may include additional buildings, extensions to existing buildings, installation of new services, eg. central heating and air conditioning and infrastructure works. On the other hand, mere replacement by a modern equivalent if something worn out would normally be regarded as a repair rather than an improvement. The distinction has legal and taxation consequences.
Indenture
A deed between two or more parties, each party having his own copy. Originally copies were all included in a single document from which each was torn or cut along a wavy (intended) line.
Indian Stamp Act, 1899
A legal statute, which provides for the payment of stamp duty in case of all real estate transactions to duty to the local government. The value of the stamp duty depends on the rental payable and the lease term or the sale value as the case may be. This duty is paid by purchasing non judicial Indian Stamp Paper, on which the lease/sale agreements are documented.
Institutional Investors
These are generally taken to include banks, pension funds, insurance companies, unit trusts and investment trusts, which are together commonly referred to in the investment field as the "institutions".
Interest
The fee charged for borrowing money.
Interest Only Loan
A loan where only the interest is repaid throughout the course of the loan. The original amount or principal is repaid at the end of the term of the loan.
Interest Rate
The rate of interest in effect for the monthly payment due.
Interest Tax
Housing Finance companies have to pay a tax on the interest income they receive from you. They sometimes pass this on to the customer. Always check with the company if the interest rate they are quoting includes interest tax or not. This tax normally about 2% of the interest rate charged. E.g if the interest rate quoted is 14% then the actual interest rate including interest tax is about 14.28%.
Internal Rate of Return (IRR)
The rate of interest (expressed as a percentage) at which all-future cash flows (positive and negative) must be discounted in order that the net present value of those cash flows should be equal to zero. It is found by trial and error by applying present values at different rates of interest in turn to the net cash flow. It is something called the discounted cash flow rate of return.
Introductory Loan
A loan offered at a reduced rate for an introductory period to new borrowers.
Inventory
The total amount of rentable square feet of existing and any forthcoming space (whether it be a tenant vacating space or new buildings coming on the market), in a given category, for example, all warehouse space in a specified submarket.
Investment
Investment is a term with several closely-related meanings in finance and economics. It refers to the accumulation of some kind of asset in hopes of getting a future return from it.
Investment Property
A property that is not occupied by the owner but leased to produce income.
Investment Yield
The annual percentage return, which is considered to be for a specific valuation in an investment being expressed as the ratio of annual net income (actual or estimated) to the capital value. It is therefore a measure of an investor's opinion about the prospects and risks attached to that investment. The better the prospects and lower the risks, the lower the expected yield and thus the greater the capital value. The required yield from an investment is estimated in the light of such factor as - a. the security in real terms of the capital invested, b. the security in real terms and regularity of income, c. the ability to adjust the income to reflect market conditions, d. the complexity and cost of management, e. the ease and likely cost of realizing the capital and f. the tax position.
