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...]
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Filed Under: *Expert Panel, Finance, Using Debt, 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...]

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

The Anatomy of a Commercial Property Deal

27 February, 2013 by Leave a Comment

SO LET'S GO right back to basics … and just break down a Commercial property investment into its fundamental components.

You see, very few investors seem to spend enough time to fully understand what's involved.

>>>>>Your Investment = Equity + Debt + Ideas + Time

And you may care to explore each of these aspects in a little more detail. [Read more...]

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Filed Under: Finance, Industrial Sector, Interest Rates, Investment Opportunity, Market Sectors, Offices, Opportunities, Retail Sector, Training Material, Using Debt, X~Factors Tagged With: , , , , , , , , , , ,

Commercial Property Investing: How to Uncover a Good Deal

20 February, 2013 by Leave a Comment

Discovering a Good DealIT'S TRUE … every deal will always be different. But that does not mean you can't use a series of simple measures, to help you sift the "wheat from the chaff"!

Only then, are those properties entitled to make it through to the next stage of detailed analysis.
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How to Quickly Shortlist Your Properties [Read more...]

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Filed Under: Economic Issues, Finance, Industrial Sector, Investment Opportunity, Market Sectors, Offices, Opportunities, Property Yields, Retail Sector, Using Debt Tagged With: , , , , , , , , , , ,

Commercial Property & The Economy … It's Purely a Confidence Issue!

12 December, 2012 by Leave a Comment

The TrueEconomic Picture

THE REST of the world looks upon Australia with envy. And you only need to scan these graphs to understand why.

It all comes down to a feeling of comparative well-being.

Australians have had it so good, for so long … that the current slower pace somehow makes us feel gloomy — because it's simply "not normal".

Meanwhile, most other countries just wish they were in our position. [Read more...]

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Filed Under: Economic Issues, Employment, Finance, Global Scene, Industrial Sector, Interest Rates, Investment Opportunity, Market Sectors, Offices, Opportunities, Using Debt Tagged With: , , , , , , , , , ,

Industrial Property Poised For Some Steady Growth

14 November, 2012 by Leave a Comment

So far, most Industrial Building has been by cashed-up DevelopersBECAUSE banks have been reluctant to fund speculative development, very little new Industrial space has come onto the market over the past few years.

Demand on the other hand has remained fairly steady; and it's now increasing.

And this will cause rentals to rise over the next few years — as there is only a modest amount of space in the pipeline. [Read more...]

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Filed Under: Development Opportunity, Economic Issues, Finance, Industrial Sector, Market Sectors, Opportunities, Property Yields, Using Debt Tagged With: , , , , , , , , , , ,

Are There Genuine Signs of The Long Hibernation Being Over?

31 October, 2012 by Leave a Comment

Emerging from HibernationIN VARIOUS recent articles, I've tried to explain how Australia's underlying fundamentals are actually very solid.

And by most measures, our economy seems to be travelling at close to its full capacity.

However, the contradiction is that Australia's budget should now be running at a substantial surplus. And the reason it's not relates to a number of structural issues. [Read more...]

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

Current Opportunities Within The Commercial Property Market

17 April, 2012 by 2 Comments

The "Emotional Cycle" suggests an upturn in activityCONTRARY TO THE VIEW of many pundits, it's certainly not all gloom and doom out there.

The share market may well have been moving sideways within a 4000 to 5000 band, since 2009.

Plus, the two-speed economy only seems to be benefiting the miners and those within the service industries. And unfortunately, increased savings levels are frustrating the retailers no end.

However, my view remains that Australians are now poised ready to come off the bottom of the "Emotional Cycle" — armed with a level of savings seldom seen in previous upturns. [Read more...]

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Filed Under: Economic Issues, Global Scene, Industrial Sector, Investment Opportunity, Market Sectors, Offices, Opportunities, Retail Sector, Stability, Using Debt Tagged With: , , , , , , , , , , ,

Is The Mining Boom Masking a Major Problem for Commercial Property in Queensland and WA?

20 March, 2012 by 2 Comments

Queensland & WA will have the greatest amount of Distressed PropertyTHIS RATHER pressing issue appears to be receiving little or no coverage at all.

But if you listen to the insolvency firms, Western Australia is about to become the "hot spot" for distressed property.

And as you can see from the chart, Queensland well and truly holds the the crown at the moment. [Read more...]

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Filed Under: Economic Issues, Finance, Industrial Sector, Investment Opportunity, Market Sectors, Offices, Opportunities, Retail Sector, Stability, Using Debt, Your Exposure Tagged With: , , , , , , , , , , , , , ,

Is There a Credit Squeeze Looming?

17 January, 2012 by Leave a Comment

WILL COMMERCIAL property investors and businesses be starved of ready funds during 2012?

Is there a Credit Squeeze looming?The banks seemed to be protesting about the increased cost of offshore borrowing. And using that as their excuse for not wanting to pass on any future RBA rate reductions in full.

But are they really telling you the whole truth? [Read more...]

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Filed Under: Economic Issues, Global Scene, Interest Rates, Investment Opportunity, Market Sectors, Offices, Opportunities, Property Cycles, Stability, Using Debt Tagged With: , , , , , , , , , , , ,

Do Banks Use a Formula When Lending on Commercial Property?

8 December, 2011 by 1 Comment

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...]

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Filed Under: Economic Issues, Finance, Key Consultants, Using Debt, X~Factors Tagged With: , , , , , , , , , , , , , , , , , ,