BORROWING THROUGH a Self Managed Super Fund (SMSF) to acquire commercial property has been a popular and attractive strategy over recent years – due to the tax benefits, and ability to minimise personal guarantees. [Read more…]
Servicing Your Commercial Property Investment Deals
12 December, 2018 by Leave a Comment
THE FINANCIAL INDUSTRY in general (and the major banks in particular) have been under the microscope recently as a result of the Royal Commission. And that has provided a steady stream of negative headlines for the banks over the past 12 months.
As a result, the banks have instituted a number of changes including: [Read more…]
4 Things to Consider When Fixing Your Interest Rate
1 August, 2018 by Leave a Comment
WHEN INVESTING IN Commercial property, one of the major attractions for investors is the cashflow available. And locking in a guaranteed cashflow, via fixing your loan can be an attractive strategy.
However, there are a number of things that should be considered, before deciding to fix your interest rate. Here are some of the most important questions to ask yourself when deciding. [Read more…]
How The Royal Commission Will Affect Bank Lending
2 May, 2018 by Leave a Comment
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SINCE DECEMBER of last year, the Federal Government has been conducting a Royal Commission into the banking industry, as well as financial and superannuation services in general.
Some areas covered so far (relating to lending practices) have included commission structures for brokers and staff, as well as cash incentives being offered by banks. [Read more…]
Tenancies, Leases, Business Types … How They Relate To Your Loan Applications
29 November, 2017 by Leave a Comment
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IN COMPARISON to the residential market, lending applications for commercial investment loans require a far greater scrutiny on the reliability of income from the property itself, often more so than that placed on the actual borrower. [Read more…]
Commercial Loans With No Financials – Is It Possible?
14 June, 2017 by Leave a Comment
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TRADITIONALLY, for any business or commercial loan, most lenders will require at least two year’s past tax returns and financials to establish servicing capacity.
For some borrowers, this is either not desirable or not possible. And so, here is a summary of several loans that could be available for such a borrower; plus how those loans may also apply to you, as a commercial investor. [Read more…]
4 Steps to Finding Your Ideal Commercial Finance Facility
29 March, 2017 by 1 Comment
IN MY EXPERIENCE, most seasoned property investors seem to have a good idea of how to structure a home loan and what to look for.
However, the complexities of commercial property and the wide array of commercial loan products mean it can be a little more difficult for commercial investors. [Read more…]
Using Your Self-Managed Super Fund for Investment Without SMSF Borrowing
3 January, 2017 by Leave a Comment
SINCE THE Superannuation Industry Supervision Act was amended in 2007 to allow superannuation funds to borrow against property, Self-Managed Super Funds have become a popular vehicle for investing in property — in particular, for self-employed borrowers or those in transition to retirement phase.
However, the loan products associated with this type of lending can be onerous and restrictive and this makes this form of lending far from preferable for many borrowers. [Read more…]
5 Ways to Maximise Your Borrowing Capacity
5 October, 2016 by Leave a Comment
WITH BANKS having tightened up investment lending considerably, gaining access to money for active property investors has become increasingly difficult.
Here are several strategies to help you to get the greatest amount of borrowing capacity with your lenders.
APRA Cracking Down on Commercial Property Investment Loans
14 July, 2016 by Leave a Comment
AS MANY INVESTORS would already be aware, borrowing for investing in property has become increasingly difficult over the past 12 months.
And that's because APRA (the banking regulator) has issued a warning to major banks to reduce their exposure to investment property loans.
Recent Changes to the Lending Environment
8 June, 2016 by Leave a Comment
THE CURRENT LENDING environment has changed markedly over the last two months with the main developments being:
- Lending to foreign investors has been severely restricted or entirely removed by all Australian banks.
- Interest Rates have been cut, with the drop passed on for owner-occupied loans and partially passed on for investment loans.
- Concerns have been raised about housing oversupply in certain parts of the country, including Melbourne and Sydney, and lenders have placed increased restrictions on higher density developments.
- Some banks have been advised that their loan books are too heavily weighted to property investment (including commercial) and have thus pulled back their lending ratios.
