The post Is There an Advantage in Using a Finance Broker to Help with Commercial Property Finance? appeared first on Oak Laurel.

Using a Finance Broker to Help with Commercial Property Finance?

If you are in the process of considering the purchase of commercial property, you might want help with commercial property finance from a finance broker who can offer to you access to some of the best loans and interest rates in the marketplace.

A finance broker who specializes in commercial mortgages, could be just the thing for you as you will be able to really compare loan packages and choose one that will fit your set of circumstances and needs very well.

By specialising in a niche area, a finance broker can help with commercial property finance by bring to the table tools, connections and resources that can bring forth financial products that meet your specific situation.

A finance broker operates as an independent agent and will set up financial negotiations and arrangements for loans for property and other ventures as needed. It is possible to put together packages of separate loan entities in order to make a total package that works in best interest of the client.

By using a registered, licensed and experienced finance broker, you as a prospective commercial property purchaser, will have access to a wider range of commercial property mortgages than would have otherwise been possible. A good finance broker will help you scour the market and present you which competitive loan options that meet your needs.

The advantage is that instead of having only a few packages to compare, you will have literally hundreds from which to choose. A good finance broker will also have access to different specialist lenders and loan products. For example for people who have some past or present credit issues; don’t meet regular lenders’ lending criteria. Furthermore, using a good finance broker can allow you access to commercial property loans that do not require annual reviews of your capacity to service the loan or the property value.

You could liken a finance broker to a boutique shop who specialises in the proper fit of a product to the express need of the customer, and in this way you have more choice and a better product in the end.

Unfortunately in Australia comparatively few commercial property loans are taken through finance brokers compared to mortgage brokers. People and companies getting finance for their commercial property still believe that options they can get by going to their local bank branches are the best and are missing out on most non-bank lenders.

At Oak Laurel we believe that we can help most commercial property buyers to get a better finance deal than they would otherwise.

+614 30129662

Oak Laurel – Commercial property finance made easy!

The post Is There an Advantage in Using a Finance Broker to Help with Commercial Property Finance? appeared first on Oak Laurel.

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The post Melbourne rent prices at record highs appeared first on Oak Laurel.

Melbourne rent prices reach record highs in December 2015 quarter

Melbourne rent prices reported at record highs in December 2015 quarter.

The median house rent price in Melbourne has hit a record high as vacancy rates drop.

According to the domain rental report for the December 2015 quarter, the annual rent growth for houses, was 5.3 per cent, and units was 2.8 per cent.

Melbourne’s median weekly asking rent for houses reached a record $400 increasing by $10 over the December 2015 quarter.

The median unit rent was steady at $370, likely due to the higher volume of apartments coming online, especially in Melbourne’s Central Business District (CBD).

Melbourne’s eastern suburbs are leading the rental price surge. Suburbs with good schools showing having higher rental gains.

Reduced investor activity and overseas and interstate migration are thought to be among the key factors in the supply and demand equation in leading to the rental price rises in Melbourne.

Melbourne is not the only state capital city to have record high rents. Adelaide, Hobart and Canberra joined Melbourne in braking previous rental price highs. Australia’s other State capital cities were flat or decreased.

Higher rental prices are likely to make it more difficult for potential first home buyers to save a deposit as more of their income is spent on rent. This is likely to increase demand further for guarantor home loans where family help first home buyers to get into the property market and low deposit home loans.

Are you looking to get out of the rent trap? Contact Oak Laurel about a home loan that meets your needs.

Contact one of our mortgage brokers in Melbourne or wherever you are to assist you with your finance.

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Oak Laurel Mortgage Brokers – Home loans made easy!

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The post Agribusiness Loans Help Farmers to Run Their Businesses Profitably appeared first on Oak Laurel.

Agribusiness Loans Help Farmers to Run Their Businesses Profitably

Farming or any form of business that is associated with agriculture has some challenges that are unique to this niche of the economy. Farming and agriculture by nature are influenced by the weather and the environment and many other factors that cannot be easily controlled or are dependable. It means that the requirements of capital and cash flows for keeping the businesses running can vary.

Agribusiness loans are often necessary for buying new agricultural property. They may also be needed for raising the working capital required to keep the business running. You may at times also need such finance for the expansion of your business, to acquire agricultural machinery or to restructure your business.

When looking for such loans, the business owner must be sure of the amount that needs to be borrowed and the term over which it can be repaid. The loan repayment frequency must match any cash flow that the business can generate. Loan amounts can depend on the equity that is offered as security for the loan. Lenders will require you to qualify for the loan by examining the financial records of your business and may also base their decision on the type of business that is being undertaken.

Loans can be taken for different terms, and if cash flows are healthy, usually it is limited to fifteen years. Longer terms can be possible if there is a low ratio of loan to value of equity. Most lenders are comfortable with any loan to value ratio that is below seventy percent, but higher ratios may be allowed for well established and long running successful businesses.

It is best to go about the task of getting an agriculture business loan through a specialist finance broker, as they will have an extensive network of lenders whom they are familiar with and who can extend the best terms to the borrower. Some lenders specialize in dealing with particular forms of agricultural business, and a specialist agribusiness finance broker will have detailed knowledge of the lenders, the portfolio of businesses they extend loans to and under what conditions they will lend.

Every type of agribusiness has its need for finance depending on crop cycles, life cycles of livestock and other factors that lenders have to be constantly aware of before they can profitably extend the loans needed by the businesses.

If you need agribusiness finance contact us and an agricultural finance specialist will handle your case.

+614 30129662

Oak Laurel – Farm finance made easy!

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The post Construction Loans Can Help You to Build Your Home appeared first on Oak Laurel.

Construction Loans Can Help You to Build Your Home

When you are in the process of building your home, it is an advantage to be fully informed about how you can finance the construction with a loan.

It is also possible for you to get short-term financing for the construction of your dream home. Lenders who provide construction loans will expect you to mortgage your property to them as collateral for any loan that they give you. You can get a loan that covers the cost of purchasing the land as well as the cost of building a home on that land.

Most loans are provided in instalments depending on the stages of the construction. These loans are short term, and in most cases borrowers may capitalise the interest charges during the period of construction. Usually construction will need to start within a year of finance being received and must also be completed within a year or 18 months of starting the work.

Before your construction loan will be approved, lenders will require you to provide them with plans and specifications that have received approval from local authorities and a building contract that has a fixed price. You will also have to prove your financial viability and have the plans of the home appraised by the lender to ensure that the loan amounts asked for are justified.

The lender becomes a partner in the building project and will require to be regularly advised of the progress of construction. After the loan is approved, payments can be made in stages for the purchase of the land, beginning with foundation work, completion of the structure and the final finishing. You may be able to opt for more stages of payment if your contract with a builder is fashioned in that way and the lender agrees. Once the construction is completed, the loan can be rolled over into a standard home loan or mortgage.

Interest is calculated as per the amounts disbursed till that date but generally will not become payable until after the construction is complete and the loan converts to a home loan. Most construction loan lenders charge the same interest rate or a couple of points over the usual home loan interest rate (unless you have an unusual situation like having bad credit). However, the fees associated with a construction loan are usually higher than a typical home loan. This is because the lender will charge more to process the documentation associated with the approvals and building contract. Fees can also be charged for inspections associated with verification that work has been completed prior to releasing funds to pay the builder at the different construction stages.

If you are building a home as a first home, you may be able to get a grant from the government to help you.

Using a construction loan broker

It is always advisable to take the help of a knowledgeable construction loan broker when you need a construction loan. They are the people who are knowledgeable about construction loans and have the experience that will be able to guide the you on all the formalities that need completion before the construction loan can be approved.

Contact an Oak Laurel construction loan specialist to explore your options.

+614 30129662

Oak Laurel – Construction loans made easy!

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The post AMP Bank restarts accepting new SMSF – Self Managed Super Fund property loans on Monday 14 Dec 2015 appeared first on Oak Laurel.

AMP recommences accepting new Self Managed Super Fund property loans from Monday 14 December 2015

Self Managed Super Fund property loan applications will now (14 December 2015) be accepted by AMP Bank. This is continuing signs that lending is returning to normal, after news that Bankwest increased its maximum loan to value ratio to 90% for investor loans and AMP again recommenced lending to investors.

The basic parameters around AMP Self Managed Super Fund property loans includes:

• A maximum loan to value ratio of 70% (note that Oak Laurel has access to SMSF lenders that accept up to 80% loan to value ratios for SMSF property loans).
• Only properties established for greater than 6 months (including Off the Plan properties) can be provided as acceptable securities
• The SMSF must have a minimum pre-purchase net asset position of $200,000 (prior to any expenses incurred in relation to the proposed property purchase).

The following documents are required as evidence of the net asset position:

• The most recent tax return/balance sheet statement for existing SMSFs (must be dated within the last 12 months)
• A Statement of Funds for new SMSFs
• Bank statements confirming outstanding balances of all the SMSF’s liabilities
• A valuation report of the asset dated within the last 12 months is required if the asset type is categorised as ‘Other’ (e.g. Artwork)

The SMSF must pass a liquidity test. The SMSF must hold liquid assets (cash, shares, government bonds, term deposits) amounting to a minimum of 10% of the total SMSF assets after the loan settlement.

AMP recommencing SMSF property loans is another win for people’s choice of investment options within their self managed super funds. Now that the Government has rejected a ban on SMSF property loans we can expect further competition in the SMSF property loan space as other lenders also provide new options.

Don’t delay act NOW!

+614 30129662

Oak Laurel – SMSF property loans made easy!

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