These 31 terms recur in the questions and answers on every PandPeil city page. Here they are once, together, with a stable link.
- Gross yield
- A property's annual rent divided by its purchase price, as a percentage. Ignores purchase costs, vacancy and yearly running costs — the simplest yield figure, and the most optimistic one.
- Net yield
- The yield after registration duty, notary fees, 5% vacancy and yearly running costs (property tax, insurance, service charges, maintenance), divided by the total purchase cost. More realistic than gross yield, though it still excludes tax on rental income and financing costs.
- Cash-on-cash return
- Annual net cash flow (rental income minus all costs) divided by the cash actually put in. For an all-cash purchase (as PandPeil calculates it) this equals net yield; with a mortgage it runs higher or lower depending on leverage.
- Cash flow
- The money left each month from the rent after all costs (and, with financing, the loan payment). Positive cash flow means the property 'pays for itself' and then some; negative cash flow means you top it up every month.
- Registration duty
- The tax paid when buying property in Belgium, calculated on the purchase price (or the estimated value, if higher). The rate differs by region and by situation (own home vs. investment property) and can change — see the current rate table and sources on the registration-duty calculator.
Simplified: Simplified: exceptions and reduced rates exist for a sole, owner-occupied home, which generally do not apply to investment property. Always check the current rules for your own situation.
- Notary fees
- The notary's cost on a property purchase: honoraria on a legal degressive scale, fixed administrative costs, and 21% VAT on the total. These come on top of the purchase price and registration duty — see the breakdown on the notary-fees calculator.
- Cadastral income (KI)
- A notional annual 'income' set by the tax authority for a property, used as the basis for property tax and for tax on rental income (when let to an individual for private use). Unrelated to the actual rent or market value.
Simplified: Simplified and general: the exact tax treatment (especially when let to a company or for professional use, where the actual rent does count) is more complex. This is not tax advice — consult an accountant or the tax authority for your own situation.
- Property tax (onroerende voorheffing)
- The annual tax on real estate, calculated on the (indexed) cadastral income and the region's, province's and municipality's rate. One of the fixed yearly costs that lower net yield.
- Syndic (building manager)
- The (usually professional) manager of a co-owned building, who administers the shared parts and allocates their cost across the owners through the service charge / HOA contribution.
- EPC (energy performance certificate)
- The energy performance certificate, mandatory when selling or letting, which rates a property's energy use on a scale (usually A to G or F). Affects heating costs and, increasingly, how easy a property is to rent out and its value.
- Vacancy
- The time a rental property has no tenant and so earns no rent. PandPeil's net yield uses a default 5% vacancy assumption (about 18 days a year); actual vacancy varies by property, neighbourhood and market conditions.
- Garagebox (lock-up garage)
- An enclosed, individual garage (usually with a closing door), distinct from a covered parking space (no door) or an outdoor parking space. Usually the category with the highest and steadiest yield in PandPeil's figures, and the lowest entry ticket for a first property investment.
- Parking space
- A covered or outdoor parking spot with no closing garage door. Cheaper than a lock-up garage, but usually with a slightly lower yield and more competition from street parking.
- Co-ownership (HOA)
- The legal structure of an apartment building (or a garage complex) where each owner holds a share of a shared whole. The owners’ association manages the shared parts, often through a syndic.
- Long leasehold (erfpacht)
- A long-term (usually 27 to 99 years) right to use someone else's land or building for an annual fee, without becoming the full owner. Rare for garages, more common on larger projects.
- Usufruct
- The right to use an asset and collect its proceeds (such as rent), without holding full ownership. Common in a life-annuity sale, where the seller keeps the usufruct.
- Bare ownership
- Ownership of an asset without the right to use it or collect its proceeds — that right (the usufruct) belongs to someone else, usually until that person's death. A bare-ownership price is therefore not directly comparable to a full-ownership price.
- Life annuity sale (viager)
- A sale where the buyer pays an amount at the deed and/or a periodic annuity, sometimes for the seller's lifetime. The final price depends on how long the seller lives, which is why such a property is left out of PandPeil's yield figures.
- Public sale (auction)
- A sale by bidding, often listed with an "offers from" price that understates the real sale price. PandPeil counts such properties in the listing total, but without a yield — the price isn't comparable to a fixed asking price.
- Asking price vs. sale price
- The asking price is what the seller lists the property at; the sale price is what is finally paid, after any negotiation. PandPeil calculates with asking prices (the only ones publicly known) — actual yields can therefore differ slightly.
- Median vs. average
- The median is the middle value of a ranked series (half above, half below); the average is the sum divided by the count. PandPeil shows medians, which are far less sensitive to a few extreme outliers than an average.
- Payback period
- The number of years it takes for accumulated net cash flow (and, if counted, appreciation) to repay the cash actually invested. Not a yield figure on its own, but a way to see how long capital stays 'tied up' before it pays for itself.
- Appreciation
- The increase in a property's market value over time, separate from rental income. Uncertain and hard to predict — PandPeil's net yield deliberately leaves it out, though the calculator has a separate tab with its own adjustable assumption.
- Investment property
- Property bought to be rented out (for rental income and/or appreciation), as opposed to a home to live in. The garages, parking spaces, apartments and houses on PandPeil are all analysed as potential investment properties.
- Rental deposit
- An amount (usually 2 or 3 months' rent) the tenant places in a blocked account at the start of the tenancy, as security for the landlord against damage or unpaid rent. Not income for the landlord, and not part of PandPeil's yield calculation.
- Deed (notarial deed)
- The official document, drawn up by the notary, that records the transfer of ownership and registers it. Signing the deed (usually a few months after the preliminary sale agreement) is when the buyer actually becomes the owner.
- Preliminary sale agreement (compromis)
- The first, binding agreement between buyer and seller, often signed shortly after agreeing the price, setting out the terms of sale. Ownership only officially transfers later, at the deed.
- Condition precedent (suspensive condition)
- A condition in the preliminary agreement (for example "subject to obtaining a mortgage") that only makes the sale final once met. If it is not met, the sale usually falls through at no cost to the buyer.
- Mortgage loan
- A loan to buy property, secured by a mortgage on that property itself. PandPeil's yield figures assume an all-cash purchase; with financing the cash-on-cash return changes because of leverage.
- Equity
- The part of an investment paid with your own money, as opposed to borrowed money. For an all-cash purchase, equity equals the full purchase cost.
- Total purchase cost
- The asking price plus registration duty plus notary fees (incl. VAT) — the full amount a buyer needs to acquire a property, excluding any renovation. The base PandPeil's net yield is calculated on.
PandPeil is an independent, free information project and is not affiliated with Immoweb. Figures are aggregated from public listings on Immoweb.be and estate agents’ websites; the listings themselves belong to the advertisers. Estimates only, not financial advice.