Be Wary of Bank Bills

29 May, 2013 by Leave a Comment

BankBills2
Part 2: Remain in Control of your Destiny

LAST WEEK, we made a start on understanding the pros and cons of Bank bills. But you also have other options.

Non-bill facilities are available through the big four banks, but are generally priced in a way as to only be competitive at smaller loan amounts.

While the big four banks are generally able to price better than smaller lenders, there are other factors considered to be important than merely the cost. And for small business, the interest rate on their borrowing is a relatively small consideration, in the overall scheme of things.

Far more important is access to credit, and flexibility of being able to draw up and down on that credit. Because, having this ability will reduce your overall interest costs in the longer run. [Read more…]

Filed Under: *Expert Panel, Finance, Industrial Sector, Market Sectors, Offices, Opportunities, Retail Sector, Your Exposure Tagged With: , , , , , , , , , , , ,

How to Complete a Building Project on Time & on Budget

21 May, 2013 by Leave a Comment

ProjectManagement2
AS YOU DISCOVERED last week, carrying out a proper due diligence is vital for any significant Commercial property purchase.

And that’s part of our role … assessing the overall structure, along with the various building services — simply to ensure they are all in good order.

However as time goes by, you may well have the need to upgrade or extend your building … if only to meet the changing needs of your tenants.

Yet this is where many investors seem to get into trouble — by undertaking something well beyond the limits of their capabilities. [Read more…]

Filed Under: *Expert Panel, Due Diligence, Industrial Sector, Key Consultants, Market Sectors, Offices, Opportunities, Your Exposure Tagged With: , , , , , , , , , , , ,

Be Wary of Using Bank Bills

20 May, 2013 by Leave a Comment

BankBills
Part 1: An Understanding, plus the Hidden Costs

WHENEVER YOU ARE financing a commercial property investment or a business, the types of funding can be broadly classified into two categories: bill facilities and non-bill facilities.

The Concept

Bill facilities are charged as a margin over the inter-bank lending rates, published each day in the Financial Review as commercial bills; while non-bill facilities are charged as a straight interest rate.

The funds for these facilities may also be raised through the money markets, but they are priced on a simple interest rate basis over a loan term. [Read more…]

Filed Under: *Expert Panel, Finance, Industrial Sector, Market Sectors, Offices, Retail Sector, Your Exposure Tagged With: , , , , , , , , , , , ,

Proper Due Diligence is Vital

13 May, 2013 by Leave a Comment

DueDiligence2

MANY PEOPLE will make the mistake of not carrying out a due diligence study BEFORE they acquire their Commercial properties.

But this can end up becoming a very expensive process — because you’ll can often miss out on the property, if someone else snaps it up, before you’re able complete your study.

Therefore, the secret lies in ensuring you negotiate a deal — where your due diligence occurs AFTER you have tied up the property, under a binding contract of sale.

Anyway, here are the 5 Key Elements you need to investigate … [Read more…]

Filed Under: *Expert Panel, Due Diligence, Industrial Sector, Market Sectors, Offices, Opportunities, Retail Sector, Your Exposure Tagged With: , , , , , , , , , , ,

Arranging Your Finance

10 May, 2013 by Leave a Comment

Your Top 5 Tips ...

IT IS NO SURPRISE that banks are still rather coy about funding Developments, so maybe a few ideas on how to get your projects across the line could be helpful.

Here are the Top 5 Tips …

  1. Properly Assess Your Capital Requirements
    Do a thorough feasibility before proceeding with any project, to ensure you have sufficient funds to complete the project based on 80% funding of total costs. Make sure you factor into your calculations capitalised interest, for least 12 months.
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  2. Lock In Enough Pre-Sales
    Make sure you are aware of the number of pre-sales you will require. And also properly research the market — so you are confident the properties in your development will sell off-the-plan. If your development is not suited to pre-sales, ensure that you are able to arrange finance without pre-sales (or with a lower pre-sale requirement through a non-bank) before proceeding. [Read more…]
Filed Under: *Expert Panel, Finance, Using Debt, Your Exposure Tagged With: , , , , , , , , ,

Commercial Property … With a New Look and Feel

1 May, 2013 by Leave a Comment

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Book-Stack3

BY NEXT WEEK, everything will appear different!

No, I’m not referring to the Commercial property market. Rather, how it will be presented to you.

Right now, this website is undergoing a total refurb. Very much like one of your investment properties you’ve been holding for a while.

And straight away, you will notice two key differences:

  1. The articles will be presented in a modern “Newsy” format; and
  2. There will also be a wider range of topics covered — by a team of expert guest contributors. [Read more…]
Filed Under: Opportunities, Property Insights, Your Exposure Tagged With: , , , , , , , , , , ,

Commercial Property: The Interest Rate Dilemma

17 April, 2013 by Leave a Comment

Interest-RatesSHOULD YOU be fixing the interest rate for the term of your investment loan … or simply running with the best variable rate?

Lurking behind that question is another concern: Will interest rates fall any further; and if so, by how much?

The Case FOR a further Interest Rate Cut [Read more…]

Filed Under: Economic Issues, Finance, Global Scene, Interest Rates, Opportunities, Stability, Using Debt, Your Exposure Tagged With: , , , , , , , , , , , ,

Does a Solid Sales Increase in February Mean the Retail Sector is Now Back?

10 April, 2013 by Leave a Comment

Strip Centres are still strugglingYOU WILL quickly find that there are two different schools of thought:

  1. After much hibernation, Retail property is set to surge again.
  2. With the high dollar, and growth in online shopping, the Retailing has much catching up to do.

Despite Australia having been mostly sheltered from the global financial crisis, retailers (especially in strip shopping centres) have been doing it rather tough.

Before the GFC, Retail property yields had plummeted. In some cases, as low as 3.5% per annum — with investors clamouring for what they saw as “sexy property”. And they believed values would always increased dramatically. [Read more…]

Filed Under: Economic Issues, Global Scene, Market Sectors, Opportunities, Property Yields, Retail Sector, Your Exposure Tagged With: , , , , , , , , , , , , ,

Commercial Property: Have You Bought What You Thought?

20 March, 2013 by Leave a Comment

DueDiligenceWHENEVER you’re looking to acquire a Commercial property for $1 million or more, you should undertake thorough due diligence on it … before making a final commitment.

However, some investors new to Commercial property generally find themselves with a dilemma:

  1. By carrying out their due diligence before making an initial offer, they could end up missing out on the property and running up unnecessary costs; OR …
  2. By trying to make due diligence a condition of the contract, this may offend the vendor and derail the whole deal.

So, let’s explore both of these approaches in a little more detail. [Read more…]

Filed Under: Key Consultants, Opportunities, Training Material, X~Factors, Your Exposure Tagged With: , , , , , , , , , , ,

Commercial Property Vacancy Rates Move Closer Together

13 February, 2013 by Leave a Comment

Vacancy Rates are much closer nowTHE NEAR-ZERO Office vacancy rates enjoyed by the mining cities of Brisbane and Perth pre-GFC … now seem to have come back into line with the other capital Cities.

The latest survey released by the Property Council of Australia (PCA) displays a much more even spread for Offces vacancies around the country.

The cooling of the mining sector, coupled with the Queensland floods, has caused a number of key players to rethink their Office space requirements. [Read more…]

Filed Under: Market Sectors, Offices, Opportunities, Your Exposure Tagged With: , , , , , , , , , , , ,

Commercial Property Investing: 5 Golden Rules

23 January, 2013 by Leave a Comment

Golden-RulesWITH THE PROPER guidance, Commercial property will prove to be a very rewarding investment — and in different ways.

However, there are several Golden Rules you really should keep in mind. [Read more…]

Filed Under: Buying Criteria, Economic Issues, Finance, Interest Rates, Opportunities, Training Material, X~Factors, Your Exposure Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,