Posts tagged: mortgages

Real Estate Investments in Australia – Private Equity in Commercial Property

property investmentsA portfolio solely consisting of shares, bonds and stock has the probability of generating low returns at higher risks. Commercial properties, however, have a potential to offer long-term returns as the market is more stable. Additionally, it diversifies your investment portfolio and opens up future possibilities of growth.

From a more professional aspect, commercial properties in Australia offer a better investment perspective. The cost of the building with minor customization work is initially higher but covers up the expenses through increasing returns. This is why you can observe an upward trend of people investing in commercial properties.

There are several ways one can invest in a commercial property including investing through Real Estate Investment Funds (REIT), which invests in public properties; or through private acquisition. Out of these options, private acquisition either through property syndicates or property trusts has seen prevalence in Australia. Choosing either one of the two is a matter of personal choice of the investor as both have different impacts on a portfolio.

But in the past few years, we have observed a huge growth in private equity as it gives investors more control. Besides that, people have realized that due to a growing need for commercial properties for rent, they have become a more viable investment option than residential properties. The points mentioned below are a few reasons why investors have been compelled to invest in commercial properties through private acquisitions:

High Returns

As mentioned previously, private acquisition in commercial properties yields higher returns on investment across the majority Australian cities. Since private investment gives investors the opportunity to do with their businesses as they please, most rent it out. This rent generates a higher returns than residential properties, making private acquisition of commercial properties a sound investment opportunity.

Portfolio Diversification

Putting all your money in just one industry or company might not be the most intelligent move, as it increases the risk of low returns. This means that if the industry or company fails, the stocks will lose their value and increase the chances of diminishing returns. Creating diversification in your portfolio by investing in commercial properties balances that risk. And since private equity eliminates the risk of a fluctuating stock market, it becomes an attractive alternative.

Low Risk

Private acquisitions, unlike publically traded REITs, are significantly correlated to the stock market. This means that if various economic factors change and fluctuate, it impacts the risks too. REITs have proven to be a volatile market with fluctuating return rates and indexes. Having private equity in a commercial property doesn’t involve this risk and increases the chances of high returns.

Active Ownership

While investing in public commercial properties might give you the chance to earn in returns, it limits how much active ownership you have in the business. On the other hand, private acquisition in commercial properties made through Stamford Capital Property Investment will give you the opportunity to hold a controlling stake in the business. You can do with the property as you wish to increase its value and maximize the returns.

From this, we learned that private acquisition in commercial properties have seen a prevalence in Australia as it gives investors a chance to add value to businesses and build a more sustainable portfolio.

4 Tips to Getting Commercial Property Finance for Investment

property financeCommercial property finance to buy a new commercial premises sounds simple but it may be far from easy. Lenders are diligent about who they lend to, and for commercial property, the process can be a bit difficult to go through. There are, however, some things that you can do in order to get the commercial property loan that you need.

The process can become less problematic and painful when you follow these tips and it will also help you get a better deal from the loan.

1. Have a Corporate Structure Diagram Handy

Commercial borrowers have many complex corporate structures. The specifics of these structures may include superannuation funds that are self-managed, a trust in the name of one’s family, associated businesses, special property vehicles, and so on.

This structural diagram is crucial if you are to get the commercial property loan that you are after. If this diagram is not clear and presented in a way that the lender is able to comprehend, it may reduce your chances of getting the commercial loan you want. If it is filled with inaccuracies, it will further confuse the lender and reduce your chances to acquire the loan.

Your business structure, once understood by the lender, allows them to expedite the loan approval and shave off weeks from approval time. They’ll know why you’re a good candidate to get the loan from the start.

2. Get the Documents Ready

Before you apply for a commercial property loan, it is crucial that you get all the relevant document and “proofs” gathered so that you are able to get friendly terms for the loan (and the loan itself) approved in a shorter time frame. Make sure that the documentation is all up-to-date.

Typically, what lenders would ask for are your most recent financial statements. That includes a statement of financial position (assets and liabilities statement), income and equity statement and more. Other than that, they’ll need copies of your sales contracts and leases, outgoings statements, tax return papers, rentals schedule as well as your bank statements.

They need all of this documentation in good quality so that they can assess whether they should give the loan to you. When you have done your homework and prepared these things well in advance, it shows professionalism and you will be able to get a commercial property loan for your chosen premises. stamfordcapital.com.au can help you get the right lenders for a commercial property.

3. Value the Property Right

If you are trying to get a loan against your commercial property, you need to be able to show the correct value for your property. Make sure that you are not overstating it otherwise you may be considered “highly unprofessional” by the lenders. You may not get the commercial property you’re after.

4. A Property Strategy

The lender wants to see what your strategy regarding the property loan is. Do you want it for investment purposes, so that you can expand, and if so, what are the specifics of the plan? The lender will be willing to give the loan when there is an expected outcome clearly presented in front of them regarding the utilization of the loan they give you.

Long Term Investment Options

long term investmentsInterested in investing for the long term? Can’t figure out a suitable option? Your primary aim is to get a decent return on your investments. Risks do exist in the financial world, which you can mitigate by diversifying your portfolio and combing the available options together.

The time period associated with long term investments is around 7 years or greater. Generally, you are on the lookout for return rates averaging to 8 % to 8.5%. High risks are expected for some of the options, but are usually acceptable because the returns are also worthy.

Before proceeding ahead, educate yourself on the various options available, and accordingly make a decision. Let’s walk you through the best choices for long term investments in Australia.

Savings Account

A savings account offers an interest rate of only 1% to 3%, but is still utilised by many Australians, simply because it is risk-free. You deposit a certain amount from your income monthly, over which interest is compounded.
You can open up a savings account with any bank of your choice, and can manage it through the offered app.

Bonds

Bonds are type of a loan, issued by the government and companies in an attempt to raise money. Investors lend an amount to the issuer of the bond for a certain time period during which they receive a return regularly. The return rates associated with bonds are higher than savings accounts.

Gold

Gold is a popular long term investment option, especially for those looking to diversify their portfolios. Gold always tends to maintain its values and cannot default unlike fiat currencies, which makes it a suitable investment option when economic disturbances and fluctuations are prevalent in the financial market. In such scenarios, gold responds differently compared to other assets, which helps you mitigate risks.

Investment advisors at goldbullionaustralia.com.au suggest that gold should ideally take up around 10% or more of your investment portfolio, but there can be variations. Once the value increases and you start realising returns, you can sell gold through simple processes to generate a profit.

Shares

If you invest in shares, it means you are a partial owner of the company. Your wealth grows when share prices increase and when you’re paid dividends. Shares are a risky investment option, and so it can be hard to figure out the ones that would maximise returns.

Property

Buying and selling property is a common investment strategy in Australia. You get money from the profits earned on the sale or as a regular income, if you rent out the unit or land. Property investment has become riskier these days, but you can address them through numerous ways.

Term Deposits

Terms deposits are god way to accomplish your long term saving goals. You put your money into a term deposit, which is then tied down for a certain period. Choose any suitable period from between 1 year and 5 years, keeping in mind that you won’t be able to make any withdrawals during this time. You earn an interest during this period, and aren’t allowed to make any withdrawals.

So which of these options have you already invested in? Do let us know what works best for you.

Top 5 Tips for Buying High Yield London Luxury Property

luxury real estate propertyThe time is actually right and perfect for the primary buyers. Since 2007, as per the mortgage lenders council news, first, buyers have achieved the high ranking. Offcourse, as per the recent surveys did, the primary buyer is still facing some ups and downs when it comes to the buying of the property. According to MyVoucherCodes.co.uk poll, primary buyers relied on their current banks for lending instead of finding a mortgage deal in the market. The following tips are beneficial if you are new to buying a property and all ifs and about would be answered.

1. The 95% mortgage with unbelievable deals and rates for the first time buyers, you have to be realistic by thinking above the deposit to save some. There are lots of hidden costs included in buying a new property in London, such as surveying fees, solicitors, removal man and also you are eligible for paying new home stamp duty fee. Stamp duty is active in UK sand depends solely on the property price, in the UK the cost is around £125,000 and above.

2. There are many people involved in the property buying with whom you have to deal other than mortgage worker. The first one is the real estate agent and the second is the one that helps you in sale process- solicitors. You should contact a local solicitor if you are moving to a new area such as to north from London. The local solicitor is more informed about the local area, developments, and issues and can help you accordingly. They can give you in in-depth property information that makes the buying easy for you. If you are moving to north eats, contact the local solicitor of the new castle. Always go for the mouth of mouth, such recommendations are quite helpful in getting the right person for the right job.

3. People get trapped in mortgaged because of the knowledge gap according to the research of MyVoucherCodes. Always do your homework before accepting any mortgage, it can please you but might ruin you completely. You should evaluate its worth in the coming years and make sure whether it’s the best for you or no. Increase your knowledge about mortgages and know the difference between a variable, fixed and tracker before you make a final decision.

4. When you are done with a search of your dream house, make sure about its freehold or leasehold. Freehold homes and flats mean you own the property but not the land on which it is built. You can face a difficult situation in future when you are planning to sell the property, as you might inquire service charges subject to the lease length time.

5. At last, once you got your dream house, your next search is for furniture and other essential things. You must have some in hand if not then try gumtree, freecycle and eBay to get bargain items rather then getting financial stress. That’s human nature when we have a new house we want everything to be new. But in reality this is not possible every time, always fill the house with essential things first and then move on.

Why to invest in South Florida Luxury Real Estate

large real estateSouth Florida is amongst the strongest luxury real estate markets worldwide. Alongside with NY and London,this is the perfect spot for wealthy investors to run business and the reasons are simple; low taxes,the central hub for international business, strong population growth, diverse cultural offerings,and high quality of life continually improving, among others.

South Florida is one of the most populated states in America and one of the wealthiest economies in the world, occupying a GDP leading position in the United States.Definitely the best place whether you want to own a luxury home or invest in real estate property.

Investing in a South Florida luxury real estate also means high returns as its prices are always soaring and regardless of any market variables, there will always be people willing to go high-end. Renting is another option if you don’t want to get rid of your property; whether you rent short term or long term, South Florida enjoys a strong rental market with high demand and good yields.

What is even more appealing is the variety of state-of-the-art properties you have access to in the luxury housing market. World-renowned developers and architects have devoted to constructing an overwhelming portfolio that includes features normally found in luxury resorts and 5-star hotels. Here’s a short list you may want to check out:

Continuum South Beach

Continuum South Beachis beautifully located in the southern tip of Miami. This is a two-tower condominium with resort-like amenities, services and fixtures that will provide owners the lifestyle they always dreamed of. The sophistication of the towers is evident just by entering the imposing two-story lobby and the unparalleled resort-like amenities, services, and fixtures this residential masterpiece has to offer. Prices can range from $975,000 to $15 M

South Pointe

South Pointe condominium prides itself with a convenient “SoFi” or “South of Fifth Street” location, dazzling views, and condominiums ranging from 850 to 1,270 square feet. The building offers a cozy café to get the day started a business center where you can impress your clients. Of course, the swimming pool and spa, billiard room and spa are not to miss. A residence in South Pointe starts at $849,000.

Auberge Fort Lauderdale

This is an exclusive new residential construction set on 4.6 acres with 450 feet of Fort Lauderdale oceanfront. The lavish tower features astriking oceanfront frontage and expansive terraces with ocean and city views.One of the prime features in the building is the upgraded spa services it offers. Find units at $2.5 M.

Murano at Portofino

With panoramic ocean, bay and city views, this luxurious tower has got it all, and is one of the most stylish bay front properties in the South Beach area of Miami Beach. This opulent condominium affords a private Bay Side Beach Club and on-point amenities for residents to delight in, including 2 heated lagoon pools a sport club and a luxury spa giving it an all-round exclusive feel that’s yours to keep. You can find units starting at $825,000.

Apogee

This residential masterpiece offers 67 exclusive residences set right on the waterfront in the elite area of South Beach in Miami Beachoffers 67 exclusive residences set right on the waterfront and it pampers it residents with only four residences per floor, each with flow-through design plus water and city views, a state-of the art spa to Take a break from your daily routine, and an infinity-edge pool overlooking the water, among others. Units start at 8.5 M