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…]

How to Select the Best Commercial Property for Your Specific Needs

Commercial property investment and investing

IT DOES NOT MATTER whether you’re an investor or an owner-occupier, there are several important factors to consider when purchasing a commercial property – to ensure you make the right choice.

In a previous article, I shared a handy App to assist you in shortlisting potential properties. If you haven’t already downloaded it, simply click on the HiReturn Filter over on the right to install it on your tablet or mobile device. [Read more…]

Choosing Your “Dream Team” for Commercial Property Investing

SO, YOU HAVE decided to take the plunge into Commercial property investing. Smart move! But where do you start? 

Well, as every serious investor will tell you, having a team of trusted experts by your side is essential for success. These are the people who will guide you and help you navigate the complex world of property investment. 

And lucky for you, you get to pick your own dream team. Here are the key players you’ll need. [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…]

Your Limited Recourse Borrowing Arrangements

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

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

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


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

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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?

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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

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…]