An instalment is a regular payment made over a period of time to repay a debt or to purchase something. In the context of property research, instalments can refer to the regular payments that are made to repay a mortgage or to purchase a property off-the-plan.
Mortgage instalments are typically made monthly, and they consist of both principal and interest payments. The principal payment is the amount of money that is used to reduce the outstanding balance of the mortgage, while the interest payment is the amount of money that is paid to the lender for the use of their money.
Off-the-plan instalments are typically made weekly or fortnightly, and they consist of both the purchase price of the property and the interest on the loan. The purchase price is the amount of money that is paid to the developer for the property, and the interest is the amount of money that is paid to the lender for the use of their money.
In the context of Core Property and property research, instalments can be used to:
- Calculate the total cost of a property.
- Compare different mortgage or off-the-plan deals.
- Identify affordable property options.
- Track the progress of a mortgage or off-the-plan purchase.