Any smsf has to incur particular expenses for the fund to run and provide retirement benefits to its members. What fund expenses are common? Any payment in line with the investment strategy and permitted by the super laws and trust deed will be deemed appropriate. Some of the common fund expenses include: Operating expenses Most…
Whether you are a business owner who is tired of paying rent or just a savvy investor searching for an opportunity to invest in a commercial property, a commercial loan is vital. In Australia, the commercial office is strong as it is characterized by low vacancy rates and strong rental returns in places like Sydney…
As an investor, you might be having a vacant space that you need to develop but lack adequate financing. Plenty of financiers out there that are willing to help. But, the question is what can you convince the banks to give you a commercial loan that you can utilize to develop your vacant space? If…
There are various kinds of commercial properties which an investor can invest in like grocery, big box, unanchored, shadow anchored, anchored, multi-tenant and single tenant, and regional or local mall properties. But purchasing these kinds of retail buildings can sometimes be costly. Therefore, you need a commercial lender to give you a retail loan finance…
First-time borrowers can find the loan application process intimidating but in essence, the process is fairly straightforward. Most commercial and business financing usually follow the same process even though some specific steps will tend to vary from business to business and lender to lender. When armed with the right information and documentation and know what…
For many business owners thinking to set up a shop or want to undertake a company expansion, finding a small business loan is perhaps the best option to finance such activities. With a lot of lenders out there offering various loan terms to small business owners, finding the optimal financing options can sometimes be tricky…
Small businesses around Australia have taken the inquiries of leasing business premises with significant importance. Apart from the legal aspects of leasing business premises, the small businesses query about the practical and commercial side of lease premises decision making. Any small business person needs an adequate guide that addresses essential matters before engaging in…
How Commercial Real Estate Investment Works Commercial property is a general term that entails a real property which an investor utilizes to generate profit. Some of the commercial real estates can be hotels, malls, farmlands, warehouses, apartment buildings, industrial property and office buildings. There are two crucial aspects that any investor that is interested in…
It is true that any property type, regardless of whether it is residential or commercial, presents a good opportunity for investments. Recent debates have shown that the real estate investing decision on which between commercial and residential is better to invest a hot button issue. Proponents of residential investment argue that residential premises are less…
Commercial property loans are usually beneficial to businesses as they will enable them to expand, increase the earning potential and open up new locations. There are certain considerations you need to look out for when searching for a commercial real estate loan. The total relocation costs Though securing the real estate loan is crucial for…
Businesses usually require a lot of capital when in the phase of expansion. It may be that the firm needs additional funds to purchase a certain property so as to develop or to complete a certain project. In some cases the funding you get from the bank can be inadequate, so you will need the…
One of the ways an investor can use to develop a property is through a subdivision. It normally involves a property developer taking a single piece of land and subdividing it into several parts. A single raw land that is undeveloped can be developed into so that several residential, industrial or commercial buildings can be…
When it comes to understanding commercial lease incentives, Rent in various commercial buildings, it is usually paid depending on the square meters or space. Commercial rents are usually distinctively two kinds of rents, so a valuer should be careful as it is calculated on the basis of either gross or net value (where outgoings are…
Essential things to know about a Non-recourse loan When it comes to real estate investments, many investors usually want to keep the risk exposure minimal to benefit maximally from investment opportunities. But this becomes sometimes challenging when people assume that the collateral security they should put in line is their house. However, most individuals are…
As a prudent business owner, knowledge on when you ought to restructure your business is one of those things you have to figure your way out; since no book out there on team dynamics and organization theory hardly tell us how or when businesses need to be restructured. And neither should the management of the…
Real estate sector is a kind of relationship that involves the tenant and the landlord. The interest of divergent beach party seeking to benefit from that relationship. Like any relationship, there is an agreement that brings together various parties to a mutual agreement; this bond is the lease. Therefore, the right kind of leasing approaches…
Investment in commercial properties usually accrues various benefits to investors who are operating their businesses. Currently, retail office and industrial properties in Australia are enjoying handsome yields that any rational investor would wish to invest. Some of these commercial property investments require huge amounts of investment outlay that are beyond an investors resources. It is…
The Real estate is one of the investment options can bring medium as well as long-run returns. The major reason could be that real estate is perceived to be less risk compared to investing in stocks since in real estate investments it is highly unlikely that an investor can lose all. People usually think that…
How are business parks investments good? Business parks are of the commercial properties that a business or an investor can choose to invest in. one of the most areas where the parks are viable are in the cities or rather the CBDs, talk of the Sydney office market. With investors’ relentless push toward the regional…
Implications of the NNN lease to the tenant Commercial real estate leases can sometimes be daunting to understand especially if it involves common terms like NNN. Getting the meaning of such terminologies is not easy as the exact definition can either be specific to an individual landlord or differ from property to property. Triple Net…
Interest Only A borrower can negotiate with lenders interest only repayments. Lenders can only allow this situation if the business has large cash-flow deposits that are capable of making large interest only repayments before its period expires. The common interest only commercial term loan is 1-2 year term. Select commercial loan lenders prefer a 5-year…
For businesses just starting out, getting a caravan park loan finance is really tricky. Fortunately, with the right kind of information, you will avoid much trouble. Why you need the right kind of financing for a caravan park For many Australian out there, caravanning holidays are considered a rite of passage. If you have traveled…
When it comes to property management in Australia, tenant turnover is one of the biggest expenses that significantly affect revenues from property investment. As the property unit becomes, vacant rent is lost while costs such as advertising cleaning maintenance and repairs will pile up. Therefore, landlords or property managers’ end goal should be to reduce…
When winding up an SMSF, there are certain legal compliance requirements that one needs to adhere to. If you understand all the obligations, then, the winding up process will be smooth. Winding up an SMSF is usually a matter of when not if. The trustees will have at some stage to wind up the SMSF. …
A superannuation fund usually benefits an individual upon retirement. In Australia, a super fund is a tax-effective investment vehicle you can utilize during retirement. The tax system enables you to lower (concessional) fund earnings and contributions tax rates as well as get tax-free withdrawals upon attaining the preservation age and meeting the condition of release.…
Any SMSF has to incur particular expenses for the fund to run and provide retirement benefits to its members. What fund expenses seem common? Any payment in line with the investment strategy and permitted by the super laws and the trust deed will be deemed appropriate. Some of the common fund expenses include: A. Operating…
Do you intend to invest in any commercial property? Do you have any sector in mind? Regardless of the strategies you intend to choose, risks will always be prevalent. However, depending on the investment type or nature, you will have to the magnitudes of the risks against the expected returns or even opportunities. The commercial…
Superannuation arrangements are usually necessary for any individual who is either nearing or has attained retirement period. The purpose of having a super is to be insulated at the time when you have retired and are not receiving any substantial income. When taking a super, there are a couple of things most people are not…
A self-managed super fund can give you control of your finances. When compared with other superannuation options, an SMSF provides a couple of unique advantages you cannot find in other kinds of funds – but it is not suitable for everyone. Instead of leaving others to invest your super, SMSF gives you a platform to…
When trying to set up a business or company, the startup cost is usually a lot for the business or company. Such a scenario is true for an existing establishment that is trying to expand its activities. Huge investment is needed for acquiring heavy equipment and purchasing or leasing commercial properties to accommodate the operations…
Are you an investor who wants to invest in a commercial property locally? Before thinking to acquire a commercial property, it advisable to carry out enough market research to be aware of the existing trends. Importantly, the underlying factor that should guide you towards any commercial investment should be it potential to have higher yields…
The trend in 2018 seems to be mixed for the commercial property market. Even though growth takes place at a slow pace, property values will be higher at the end of the year. Many analysts didn’t anticipate the average price rise would be stronger the way it was in 2017. As auction clearance rate dropped, investor…
If you have done your background check, and prefer building a new home in Australia instead of buying an already built home, then, a construction loan is for you. Interestingly, the good thing with a construction loan is that apart from securing for building purpose, you can also secure it for making key renovations to…
Interest Only A borrower can negotiate with lenders interest only repayments. Lenders can only allow this situation if the business has large cash-flow deposits that are capable of making large interest only repayments before its period expires. The common interest only commercial term loan is 1-2 year term. Select commercial loan lenders prefer a 5-year…
Earning money involves a lot of hard work, and no one wants to lose it casually, so people want to save every bit. So, you cannot afford to go solo when you need to slice some few bucks off a significant real estate deal. Just ask yourself whether it would be worth it to spend…
Commercial Specialists INCOME FROM DAY ONE It's all about the cash flow. An example. Purchase price $1m. Govt costs (including stamp duty) and misc $50,000 Total cost $1,050,000 Option 1 Deposit of 20% say $200,000 plus $50,000 for costs. Total outlay $250,000 80% Commercial loan is $800,000. Assumption is deposit is borrowed on a residential…
