Global Capital Commercial

Developing property can be a rewarding endeavor. You can rely on it as your main source of income (like many others) or supplement your income. The task of buying a plot of land and building a house on it, or buying and renovating an existing property, may seem simple, especially when you are just starting out in the real estate development business. That's why it's a good idea to seek professional advice. As a beginner in real estate development, there are some important things you need to know that will greatly affect your success in this field.   The first step in real estate development Real estate development can include the process of dividing up property as well as renovating property for resale. Method can also mean the destruction of property and its restoration. If you want to start a business, first of all you have to spend a lot of time doing your homework. Starting property development requires you to educate yourself, talk to the right people, observe what others have done before you and mark the places where they develop properties. Being able to determine the type of property you want to invest in and be sure of the market you will be targeting is also important. To get the most out of your investment, be careful about buying below market value properties, as this technique allows you to earn more quickly. You can find BMV properties at auction where you can get them for 30% below their market value. Be sure to look for sellers who are struggling - or those who are desperate to sell for reasons such as divorce and foreclosure - as these owners are willing to accept offers well below their actual home price.   Where real estate thrives Again, in determining what to focus on for your real estate development plan, research plays an important role in success. Be sure to look for thriving areas where populations are growing and places to look for rental housing. Good location being close to schools, shops and public transport.   Receive funds for your project Depending on the project, real estate financing can be taken as a residential or commercial loan. Each is based on your circumstances, which then determine the amount you pay as interest on your finances. There are several factors to consider when deciding on a rate. One of them is your experience and experience in real estate development. The interest rate also depends on the industry at which you apply for finance and the loan offer you have forwarded to the lender. If you're just starting out, banks tend to require a higher level of security. This means you have to invest more of your own money in development. You can also get 100% real estate development grants for your projects. There are three ways to achieve this. The first is to find a property below market value and find a lender who is willing to provide financing against its actual market value. Second, providing additional guarantees to creditors in need, which can be in the form of other properties, before obtaining 100 percent financing. The third is Gross Development Credit, which involves providing an estimate of the final sales value of your project once the construction phase is complete. Real estate development is a venture that requires time, patience, research and the ability to take calculated risks - even more so if you intend to turn it into a major source of income. Even if you have learned the ins and outs of real estate development, taking this risk can be greatly offset by the benefits you gain from being a successful real estate builder. For more information about Property Development Finance and Finance for Commercial Property visit GCC.        

Investing in commercial property can be a daunting process, and with so many funding options in Australia, it can be hard to know where to begin. If you really want to make this new venture work for you, it’s important you do it the right way. Using an SMSF (self-managed superfund) to buy a premises offers you lots of benefits, here’s why: No landlordsIt can be disheartening to pay out a significant amount of money each month to a third party. However, with an SMSF, you can effectively pay rent to yourself, as your funds will go towards your super fund and not into another person’s pocket, as is the case when using private lenders. This means you’ll be able to grow your investment more quickly. This rent can also be claimed as an expense when filling out tax returns as per normal commercial regulations. Within the SMSF, the rent is subjected to just a 15% tax, but deductibles on the lease are capped at 46.5%. Additional tax benefitsIf your property is held by the SMSF for over a year, when it’s sold, capital gains are only taxed at 10%. If you’re receiving a pension when you’re selling your property in the future, you won’t have to pay capital gains tax on the sale. What’s the process of buying a commercial property using SMSF?You’ll need to have the commercial property you wish to purchase valued by someone who is independent of your SMSF as well as qualified to do so. The selling price of the premises must also reflect the others currently on the market, as it’s important for the lease to be competitive in a commercial sense. Once purchased, rent payments will have to be made on time, despite being paid back into the SMSF, and will always need to meet the full amount. It’s important that the premises is used only for commercial purposes and is valued regularly following the sale. Ultimately, the property must continually offer benefits to all members of the SMSF for it to comply with its original purpose. Are there any risks to consider?As with any type of investment, there’s always potential downfalls. Because the property will be limited to commercial use, it may be more difficult to find a buyer for this market should it be more viable to sell the property than maintain it. Owners could also struggle with covering the costs of maintenance and insurance, which they will be liable for, as these can quickly mount up and put a strain on their finances. However, one of the main things to consider is whether the investment will offer long term returns. Although it’s ideal for those wishing to run a business, the property may struggle to meet the requirements it set out to in the beginning. A large part of using an SMSF to invest in commercial property is the retirement gains members can benefit from, so if large amounts of the fund are focussed in this single asset, it can be a difficult goal to realise.

Commercial property can be a great investment, and there are many different types that are worth considering. Commercial property is defined as any type of property that is bigger than one house on one lot, which means that there’s a lot of variety in what that entails. 1. Apartment buildings Commercial property can sometimes be a misleading term because even though people live in apartment buildings they are still considered commercial. This can mean anything from small apartment blocks of 4 or 5 to multi-story complexes. These can be fantastic, low-upkeep income generator. 2. Offices and warehouses The big advantage of office and warehouse property is that tenants pay triple net leases, which means that they pay rent, all maintenance and repairs, property insurance, and real estate taxes. Tenants will also pay the land tax in all states except Queensland. 3. Retail centers Shopping centers and malls are also leased on a triple net basis and with longer terms. These are great investments over the long term because your profits don’t go down as taxes go up. Your profits just go up as rents go up, so your profits will increase over time. 4. Hotels and resorts This may not be the best investment for passive income Owning a hotel or resort is the same as owning a business. It is so important in this area is to do your research and know what you’re getting into so that you can protect yourself. One way around this though if you do still want to invest in a hotel or resort is to lease it to a company that will handle the operations. That way you can reap the rewards without the headache. 5. Land development Another form of investment that can burn you if you don’t know what you’re doing. Experts suggest starting small with property development because it can be an exciting and rewarding investment strategy, allowing you to be more hands-on. If you need help deciding what kind of commercial property makes sense for your financial goals, the team here at Global Capital can help! We specialise in property and construction finance and can provide the expertise you need to make the best possible choice. Know more and contact us for Commercial Property Loan, Email us on info@globalcapital.com.au or visit our website https://www.globalcapital.com.au/property-finance/commercial-loans/

Whether you’ve been in the fickle world of business for a year or for fifty, you could find yourself needing a sum of money in a pinch – but you don’t have it to hand, at least right now. Despite it being a common problem for many, applying for a commercial loan is still deeply stigmatised and fogged by myths. Read on to discover the most believed myths surrounding commercial loans, and what the truth really is when it comes to financing your business into the future. Myth: Without a perfect credit score, you won’t get a loanThis is one of the most common myths – and also one of the most untrue. While it’s accepted that generally possessing a good credit score improves your chances of being accepted, having a bad credit score isn’t the be-all and end-all. If this applies to you, consider going through an alternative lender rather than a traditional big bank. They will likely be more understanding of wider circumstances than a traditional large bank would, and be more willing to offer small commercial loans. Myth: Without a business plan, your application will be rejectedAnother assumption about commercial loans that is ultimately shrouded in falsifications is that you won’t be accepted for a commercial loan without proof of a business plan. While it’s true that this is the case if you’re looking for a small commercial loan with a bank, it isn’t a simple blanket scenario that fits every application. Generally, if you apply with an independent loan company, a business plan won’t be needed – they simply look at the business in its entirety and judge it based off that. Myth: Applying for a loan is lengthy and fraught with obstaclesAgain – this may admittedly be true when it comes to dealing with big banks. However, going through alternative financing methods can mean that you receive a loan within a matter of days. This depends on the business and the group you’re applying for funding from, but time is money and being able to bring delays down to the shortest period possible means that your business can get productive as soon as possible. Since being established in 2001, Global Capital has long been the go-to choice for commercial loans, development finance, and SMSF loans. Global Capital is trusted by more than 6,500 commercial brokers and offers second-to-none access to well over four hundred lenders such as private investors, banks, and institutions. Get in touch today to learn what we could do for your company. For more details visit our website https://www.globalcapital.com.au/

Choosing the right investment for you means parting with your money now in the hopes you will see it grow before it comes back to you. However, when you work with the right financial partners, commercial investment doesn’t have to be a risk. Commercial loans in Australia can secure you a stronger position in the property market than residential investment. There are several important differences between commercial and residential investment you should know before you choose the right one for you. Commercial loans in Australia Commercial property can provide you with great cash flow from the property’s income with a gross rental yield of between 8% and 12%. However, you will see less capital growth than a residential investment. Taking out a commercial loan will allow you to plan for a longer-term investment as commercial properties generally have three to 10-year leases. This makes them a more secure and reliable investment. You are also not responsible for the council rates, water rates or any corporate fees on a commercial property. Your commercial loan may also be easier to finance as a smaller deposit is required. Residential investment Alternatively, a residential property’s value can be more stable across different economic climates, whereas commercial property values can fluctuate if there is an economic downturn and a drop in demand. It is also generally easier to find residential tenants, whereas commercial tenants have to fit very specific needs so your property may be vacant for some time. Residential property values can be more stable over time. While it may go up and down, you won’t see the large fluctuations you can see in commercial property values through changes in supply and demand, surrounding properties and changes in the building’s infrastructure. Commercial property investment is a unique way to grow your portfolio. However, as with any investment, there are risks involved. That is why it’s important to make sure that commercial investment aligns with your current situation and your plans for the future. If you want to find out more about High LVR Commercial Loans in Australia or discuss your options for commercial property investment, contact Global Capital now.

Commercial properties, such as offices, shops, and warehouses, offer the investor strong, long-term growth, potential and diversity to your portfolio. However, like any savvy investor, you will want to keep abreast of the pros and cons. Here are the key points to consider. You need to be in it for the long haul. Everything about the commercial property process takes a good deal longer than it does with residential investment. The due diligence on properties requires months, as opposed to a week or so. Seeking the right tenants for a commercial lease can take much longer than finding the right renters for a house or apartment. The commercial leases are longer, generally 3-5 years. If required, renovation and upgrades are a more complex undertaking. That’s why you need to look upon this investment as a marathon rather than a sprint. And over the longer term, the rewards can be much greater. Although commercial properties have a longer sales cycle, they can result in much higher capital growth. There are higher rental yields over the longer lease term, usually 5-10% net, and healthier competition for your leases if your premises are in a sought-after business location. Be aware of market trends and area demographics. Commercial investments have a greater emphasis on potential business growth in the area. You need to be conversant with the demographics of those businesses who will be your clients. Consider current market trends that will impact those clients. For example, is the area ripe for growth in the customer base of your clients? Are commercial properties in the area topping the list of where businesses want to be located? What are the civil engineering and environmental plans for the region and how are they likely to have a positive or negative effect on your investment? Do you plan to expand or further develop your commercial property and, if so, how does that align with local authorities and with the approval process? Make certain you consider the type of property in your risk assessment. Residential properties in the same area are often very similar and pose no competitive risk in offering leases. Not necessarily so when it comes to commercial interests. Two office buildings or warehouse-type structures in the same area might pose problems by opening up too many leases in too small a market. It’s essential, therefore, to understand the market and assess the office, shop or building’s viability as part of your risk management. Seek out tenants with the best long-term survival potential. Research those types of businesses that are more likely than others to close their stores or branches and operate solely online. It’s a very real consideration in today’s business leasing market. Businesses such as bank and insurance branches, specialist retailers and some government service offices are examples of this. Avoid signing leases with businesses that may opt-out early or be less likely to take up an option to renew. It’s also important to structure your insurance so that you’re covered if one of your tenants goes out of business and unavoidably defaults on their lease. It’s worth noting that commercial tenants tend to be less management-intensive, as they look after the premises in a professional manner and are less likely to make demands over petty issues. When scouting for a loan, your lender’s expertise in commercial property financing is a vital tool. You will need a much higher initial capital outlay than you would for a residential property, usually around 30%. A vital part of your pre-planning is in securing the best deal from a lender with both the reputation and experience in commercial loans in Australia. Low risk, strong returns, stable income, and tax deduction allowances are just some of the benefits for an investor to consider when it comes to commercial properties. If you need Commercial Property Loans, Please call us now 1300 011 211 or mail us at info@globalcapital.com.au, or visit our website https://www.globalcapital.com.au/