The Loan Process For Commercial Property

Arranging a loan for commercial property

FINANCIAL INSTITUTIONS HAVE a range of methods for evaluating commercial properties, but there are some general guidelines they typically follow.

One of the key numbers that banks focus on is the property’s Net Operating Income (NOI), which is essentially the rental income minus expenses. [Read more…]

Your Investment Climate During 2024

THERE IS A BELIEF among many experts that a surge in the stock market typically precedes a recovery in the commercial property market by about six months. And the start of this year saw equity markets gaining some momentum.

Bank of America’s most recent survey of fund managers for 2023 indicates that this momentum is expected to remain strong.

[Read more…]

A Promising Outlook for Inflation and Commercial Property

FOR WHAT IT’S WORTH … my view is that there is growing evidence to suggest inflation will not be as sticky as many pundits would have you believe.

Despite a recent surge in residential rentals, Australia’s inflation seems to have reached its peak and is expected to rapidly recede. And that’s evidenced by the June figures just out, showing that inflation has fallen from 7% to 6% per annum, over the last quarter. [Read more…]

Commercial Property and the Likely Impact of the Budget

CONCERN OVER HIGH INFLATION is what is causing the RBA to continue raising interest rates.

So the real question is … will the latest Budget be responsible for adding to inflationary pressures?

Anyway, let’s quickly pick apart the critical issues of the latest Budget – as far as they relate to Commercial property. [Read more…]

Commercial Property Going Forward in 2023

WITH A CLEARER OUTLOOK for interest rates, Commercial property is expected to bounce back in 2023. Particularly, with several pundits suggesting the RBA could well start to ease rates again later this year.

Understanding the facts

There will be some investors, who may initially take a cautious approach. [Read more…]

Let’s Look Behind the Inflation Curtain

DESPITE THE RECENT new Omicron variant, consumer demand is surging against the backdrop of labour shortages, supply chain blockages and recent price increases.

All of this is causing confusion and some concern. And pundits around the world are detailing strong Inflationary pressure – which usually means interest rates are likely to increase, sooner rather than later. [Read more…]

Economy Continues to Grow

IN REALITY, the Australian economy is showing solid growth in the metropolitan areas. And there is a flow-on effect into most regional cities – the only exceptions being those areas recently struck by drought and bushfires.

While not buoyant (and there may be a short-term pullback from natural disasters) … overall, the economic fundamentals look fine.

Therefore, we need to steer clear from unwittingly talking ourselves into recession. Because, as soon as confidence returns (and it will), consumers will start spending again. [Read more…]

Why Do Politicians Pay Such Scant Regard to the Truth?


SURELY THE GENERAL PUBLIC aren’t that gullible? Maybe they are.

Everyone knows politicians tend to massage the truth to suit their purpose. However, it seams Bill Shorten is once again trying to mislead people – in much the same way as he did with the “Medi-scare” campaign, in the lead up to the last election. [Read more…]

How Will Trump’s Win Affect Commercial Property?

Trump and Commercial Property

WHILE THE WORLD may be stunned by Donald Trump’s win, you’ll most likely find things will not be nearly as bad as everyone thinks.

And that’s reflected in the huge rebound in the stock market — once investors began studying his policies in more depth.

How did Trump achieve the Win?

In many respects, the media is responsible for the outcome — because so much airplay was given to his outlandish rhetoric. [Read more…]

APRA Cracking Down on Commercial Property Investment Loans

Recent Changes to the Lending Environment