For more than 30 years we’ve been in business and assisted hundreds of people with property finance to acquire their dream home, develop property portfolios and purchase commercial properties to allow them to grow their businesses.
Every client has different property finance needs and circumstances and we consider it vitally important that we take the time to understand what yours are. Once we’ve achieved this, we then set about finding the most suitable product and lender to meet your requirements and then structure the facility to meet your needs.
Once upon a time, if you needed finance to purchase your first home, your only option was to march down to the bank that you deposited your hard earned wages into, dressed in your Sunday finest, and beg the Manager to provide you with the funding. If he liked what he saw, and your figures stacked up, then you got the loan, on the terms that he wanted. Thankfully, those days have changed!
The home loan market is now a totally different beast with an ever-increasing number of lenders offering a huge number of loan products packed with different features and capabilities. Many loans are designed for specific types of borrowers and ascertaining whether a loan is suitable for your individual needs can be daunting to even the experienced property purchaser.
Our experience and processes will ensure that we understand your needs. We will then set about to not only finding you the best home loan product to meet these needs but also teaching you how to use that product to your benefit and in the process create wealth.
Below you will find the many ways that we can assist with your property finance needs.
We all know that property investment can be an excellent form of wealth creation. Unfortunately, for the majority of people, their residential property will be the only property that they will ever own, despite the fact that they could quite easily have one or more investment properties creating wealth for them.
Our experience over the years has shown us that the majority of people under achieve when it comes to building a property portfolio that’s capable of providing them with a residual income which allows them to maintain the same lifestyle in retirement that they enjoyed through their working years. This usually occurs because of one of the following reasons:
- They don’t think that they will qualify
- They don’t think that they will be able to afford the loan
- They don’t believe that they have enough savings to purchase another property
- They didn’t have the right mindset
Regardless if you are an property investor looking at expanding your portfolio or a looking at taking that first step into the Property Development Market we can provide you with some insight into the diverse, complex and sometimes tricky business of Property Development.
When you are entering the world of Property Development it is important to note that you will need to create a team of experts that can assist you through the process. Depending on the complexity of your development, these may include some of the following:
- Real Estate Agents
- Finance Broker
- Town Planners
- Building Contractors
- Development Managers
- Quantity Surveyors
- Property Strategist
As a general rule with Property Development, if you are looking to develop a large project (more than four units) you will need to secure a commercial property development loan. A commercial property development loan will provide the funds to construct multiple properties on one title. If you are looking at developing four or less units, such as duplexes, triplexes or townhouses you can secure funding through a residential property development loan.
Below we have provided you with the nine steps guide you through the expectations of Property Development.
What do you do with your property development upon completion?
You have two options:
Option 1 – Sell Your Development
There are some developers that prefer to use their property development for a short term profit as opposed to long term profit. The advantage to selling your development is that you will make a profit straight away, pay off the development loan quickly and then move onto their next project with both more experience and more funds.
The disadvantage to this decision is that there is no opportunity to make more money from the property.
Option 2 – Retain for Long Term Investment
By retaining the property development for a long term investment you can also benefit from the following:
- Higher rental yields through the tenants paying retail rent for your wholesale investment property.
- Greater financing opportunities as banks will use the development properties current market value to allow you to refinance and withdraw additional funds.
- Capital works depreciation allowances which are available to different properties depending on their type, industry and construction commencement date.
Whether you’re a Business owner looking to purchase a premise from which to operate your business or a professional property investor looking to expand your portfolio, Commercial Property finance can be confusing.
We’ve been able to provide some of our greatest savings to our clients in this market, either from a simple loan restructure to a complete refinance.
Here are some Commercial Properties we have helped out clients with:
- Childcare centres
- Industrial Warehouses
- Medical Centres
- Hotels & Motels
- Convention Centres
In recent years it has become more popular amongst Australians to use their Self Managed Super Fund (SMSF) to buy investment properties.
A self managed super fund is a savings account that you manage yourself to fund your retirement, as opposed to a fund that is managed by a superannuation provider.
How does the borrowing work?
Once your SMSF is established, and your existing superannuation is transferred across, you will be able to use the existing superannuation as a deposit. If you decide to invest in property and use borrowings to achieve this end, you will be required to establish a Bare Trust which will hold the property on behalf of the SMSF.
Once your Bare Trust is established, Lenders will then advance (subject to servicing guidelines) up to 80% of the purchase price to assist with the settlement of the property. The SMSF will then need to have sufficient funds to cover the deposit and settlement costs. It’s also important that the SMSF has some surplus funds available after settlement.
The loan will be serviced from a combination of the rent received, returns from other investments, SGC payments and any Salary Sacrifice contributions.
To comply with the legislation, the borrowings will have to be Limited Recourse borrowings, meaning that the lenders only have recourse against the security property in the event of default, thus protecting your remaining Superannuation assets.
Lenders Loan to Valuation Ratio’s and servicing guidelines differ significantly, as do the costs and the interest rates charged. It is essential that you have your finance sorted before you proceed with any property purchase.
There are a number of benefits to investing in property via your superannuation fund.