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