Do Banks Use a Formula When Lending on Commercial Property?

Getting the Money you need for your Loan

BANKS have a variety of ways of analysing a Commercial property; but there are a few guidelines they all tend to use.

For them, the most important number is the property’s Net Operating Income — which is basically rental minus expenses. As simple as that may seem, the calculation can vary dramatically from lender to lender.

Calculating the Net Operating Income is fairly straightforward. [Read more…]

Where to Invest … Right Now!

Last week, you are given a quick overview of the CBD Office scene around Australia. But one of the tightest spots at the moment is the south-eastern Office market in Melbourne.

A recent study by Jones Lang LaSalle revealed there is only 12,200 m2 of space currently under construction — mainly as a result of cautious financiers not being prepared to support speculative development.

As such, vacancies will fall significantly over the next year or so.
[Read more…]

Space Shortage Looming?

Office Vacancy rates around Australia are falling — albeit faster in some capital cities, than others.

The chart below shows you where things currently stand.
[Read more…]