Commercial Property Loans: Fixed Rate for How Long?

 

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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?

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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

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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…]

The Previous “BEWARE” … Has Now Become LAW!

High Court Ruling

THE LANDMARK DECISION of Willmott has recently been upheld by the High Court. The decision confirms that a liquidator has the ability to disclaim a lease, meaning that the tenant will no longer hold a leasehold interest in the land.

In our article published in September last year, a case summary was provided of the Victorian Supreme Court of Appeal decision. This article will focus on the reasons provided by the High Court. [Read more…]

How to Rectify Your Non-Complying SMSF

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LET’S REFRESH: In Part 1 we looked at areas of non-compliance; and then moved onto the potentially draconian tax consequences in Part 2.

If you have a non-complying SMSF, this final instalment will give you some direction (and hope) as to the action you can take.

If you have admitted that you are non-compliant to the ATO, the following considerations will determine your outcome. [Read more…]

The Very Serious Taxation Consequences of Having a Non-Complying SMSF

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IN PART 1, you discovered the main breaches that lead to non-compliance. This article outlines the very ugly tax consequences of being labelled non-compliant by the ATO.

Taxation Penalties

SMSFs are subject to income tax but receive concessional treatment — provided they are complying funds.

A complying SMSF’s assessable income is generally taxed at a rate of 15%. BUT for a non-complying fund the rate is 45%. [Read more…]

Does Your Self Managed Superannuation Fund (SMSF) Comply?

SMSF

IF YOU HAVE made a mistake with your SMSF, there is no point burying your head in the sand hoping it will go away!

There could be serious taxation consequences if you do have a non-complying SMSF.

The following series of articles looks at how you can manage SMSF problems … so that you can end up in great financial shape, focused and ready to invest appropriately over and over again. [Read more…]

Floor Loadings can often be A Trap for the Unwary

OLYMPUS DIGITAL CAMERA

YOU MAY KNOW that floor loadings differ depending upon the intended use of the floor — but it is not that simple.

Floor Loading Requirements

The imposed loading on a office/commercial use building is generally 3 Kpa (3000 kg per sqm). And a residential use building is 1.5 Kpa (1500 kg per sqm).

Therefore, if you plan on converting a Commercial property to residential — the floor is capable to withstand the higher loads and meet the requirements. [Read more…]

Getting All The Adjustments Correct at Settlement

Settlement

IN THE CONVEYANCING stage, before settlement, the vendor and purchaser adjust the purchase price to deal with the following matters:

  • Periodic payments of all statutory outgoings (such items as council rates, water rates and land tax); plus …
  • Rent and outgoings payable by a tenant under a lease. [Read more…]

Part 2: More About Your Loan Security

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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?

Loan-Security

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…]