IN PART 1, we gave you some advice if you are deciding whether or not to fix your loan.
Today, we continue where we left of with three guidelines to help you avoid a few more common pitfalls when it comes to fixing a loan. [Read more…]
Commercial Property Loans: To Fix or Not to Fix?
11 February, 2014 by Leave a Comment
INTEREST RATES REMAIN at historically low levels. And the competition for business between banks and non-bank lenders is fierce.
As a result, you can find some very attractive fixed rate options in the market at the moment.
However, if you are considering fixing an existing loan or taking out a new fixed loan, you must understand some fundamental rules that govern these loans.
The following guidelines will help you structure your fixed loans to provide the most benefits for both your residential and commercial investments. [Read more…]
Limit The Security You Grant to Your Lender
29 January, 2014 by Leave a Comment
IN MY LAST ARTICLE, you read about the various securities lenders can take over your property, in addition to mortgages.
This article will highlight various options for improving your security position when borrowing as a means of maximising your asset protection. [Read more…]
Part 2: More About Your Loan Security
27 November, 2013 by Leave a Comment
IN THE LAST article, you read about two different types of security that lenders can take other than the mortgage. They were “Fixed and Floating Charges” and “Personal Guarantees”.
However, there are a few other forms of security that you should be aware of before entering into any agreements. Read on to find out more. [Read more…]
What Creates Security for Your Loan?
20 November, 2013 by Leave a Comment
WHEN YOU TAKE out a property secured loan, you understand that a lender will register a mortgage against the property that is being secured.
However, typically, when you read through actual loan agreements, the mortgage is just one part of the security that is taken.
In this article, we will be looking at some of the other types of security that lenders will typically request when applying for a loan. [Read more…]
Have You Considered Non-Conventional Lenders for Commercial Property?
1 October, 2013 by Leave a Comment
LIKE MOST COMMERCIAL PROPERTY investors … you are mainly concerned with obtaining the best rates and terms possible, when it comes to funding options.
As a general rule, you will find these with the major and second tier banks — their cheap cost of funds are able to on-lend at often attractive terms. And in the current environment of high competition for business and low interest rates, the bigger lenders are a good place to start. [Read more…]
How to get the Best Pricing For your Commercial Loans
17 September, 2013 by Leave a Comment
COMMERCIAL PROPERTY FINANCE rates and fees are much more fluid than those associated with residential loans.
To get the best deal, you should know what the banks look for and consider the other factors that go into pricing for commercial loans. The following ways may assist you in securing better pricing for your commercial loan. [Read more…]
How to Use the Equity in Your Commercial Property
27 August, 2013 by 6 Comments
RESIDENTIAL PROPERTY INVESTORS commonly release equity in their homes in order to invest in other property. But can you do the same with your Commercial property?
Equity in Commercial Property
It is possible for you to utilise the equity in Commercial property … but it is a bit more difficult and complex than with residential property.
Banks are more risk-averse to Commercial property funding than they are to the residential market. And they will want to have some measure of control over the use of funds — before releasing cash to you. [Read more…]
Control The Loan Process
23 July, 2013 by Leave a Comment
THE OTHER DAY, I was doing some analysis on the loans lodged over the past year … looking at the time-frames, and where the delays have occurred.
And I was struck by the number of stages a loan application needs to go through, before settlement. Plus the number of people the file depends upon, to go smoothly.
The people involved in this process can include the broker, the bank officer, credit analyst, valuer, borrower’s solicitor, bank’s solicitor, vendor’s solicitor, accountant, financial adviser (if financial advice is required), real estate agent and, possibly, the tenant.
As you can appreciate, delays can occur at the hands of any of these stakeholders with dire consequences. That’s why it is advisable (as far as possible) for you to retain as much control over the process as you can … in order to avoid potential pitfalls. [Read more…]
4 Key Tips for Couples Arranging Loans
11 July, 2013 by Leave a Comment
WHEN BORROWING against Residential or Commercial properties for investment, it is important to keep in mind the most effective ways of claiming tax benefits, if you wish to maximise the return from your investment.
This is particularly so, when the purchasers are couples — because working with the correct loan set-up can ensure the household tax burden is considerably reduced. [Read more…]
Never Cross Collateralize Your Loan Arrangements
27 June, 2013 by Leave a Comment
Part 2: Proper Loan Structuring can give you Protection.
LAST TIME (in Part 1), you discovered why the banks should not be allowed to call the shots. And perhaps a couple more Case Studies will help to further explain that.
Let’s take a look at what happened “Kevin”
He was a very successful property investor who had an impressive portfolio, consisting of several residential and commercial properties.
Kevin was able to build this portfolio through a mixture of a good knowledge of the market, savvy negotiating skills, a high-income job with a resources company and, it has to be said, some luck in picking the trends.
Kevin’s problem was that he wanted to retire early — which is something someone of his net worth should easily be able to do. But he made one major mistake. [Read more…]
