The Investment Spotlight Glossary - Here to help explain the key terms used in the world of investments

BTL

The phrase buy-to-let can refer either to the investment strategy of buying a residential property to be let for profit; or to a particular category of mortgage used to purchase a property forletting.

HMO

An HMO is a property which is let to three or more tenants who share amenities and form two or more households. Households are defined thus: two friends sharing would be considered two households, whereas two relatives or two people living as a married couple would be considered one household.

Syndicate

Syndicates refer to the collaboration of more than one investor in order to complete the puchase of property.

Yield

The term yield describes the amount in cash that returns to the owners of a security. Normally it does not include the price variations, at the difference of the total return.

ROI

In finance, the return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested.