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Purchasing Commercial Property
Purchasing a commercial property be it an office space, warehouse, retail outlet, or a mix-use building can be a great way to diversify your investment portfolio and generating additional income.
Benefits of buying a commercial property may include:
- Higher rental yields generate
- Stability of income
- New and more diversified market sectors
- Added tax benefits i.e. depreciation allowances.
Like with any investment, there can be pitfalls. Commercial property can have added/higher costs, and tax implications to consider. However, we at RION can help you to navigate the options and set you up on the right lending path. We can also put you in touch with the necessary people to help you along your journey.
Speak with an expert RION lending consultant for a free consultation…
Specialised Property
A specialised commercial property constitutes something that is either not easily convertible for alternate use (i.e. purpose-built) or may carry a going concern value.
There are a vast variety of commercial property types, and lender appetites, LVRs, and policies etc. may differ depending on the property in which is being invested. To name a few, specialised commercial properties may include, for example:
- Pubs, Clubs and Hotels (Accommodation)
- Boarding Houses
- Petrol Stations
- Child Care Centres
- Nursing Homes
Speak with a RION consultant today, and explore your options and lenders in the market best suited to your investments...
Development & Construction
From small townhouses to residential apartment blocks or mix-use and both specialised and non-specialised commercial properties. Finance for the construction of property and buildings can be a challenge, especially if you are an investor or small developer looking to enter the property development market for the first time. At RION we can help you to structure your development finance requirements.
Typical forms of development funding include:
- Major Bank Construction Loans
- Non-Bank Construction Loans
- Mezzanine Funding
- Preferred Equity
- No-Presale Construction, and
- Residual Stock Finance
Unlike other forms of commercial lending, in addition to the financial metrics of the transaction, and given added risks associated with construction, other factors considered in the application include the borrower, project and construction firms background/experience and the overall market conditions.
RION can help you to understand the benefits and drawbacks of both equity & debt funding and how to best structure your loan tailored to the circumstances. Contact us for a consultation…
Reviews, Maturities & Refinance
If you’re a commercial customer and have loan facilities > $3m, it’s likely you may have review or maturity dates. You may also have additional conditions and/or covenant reporting requirements as part of your loan agreement.
As experienced and former bank managers, we understand the challenge that this can sometimes present and the burden of having to generate the necessary reports (or comply with the ongoing conditions), taking focus away from your business.
At RION, we can act as your Relationship Manager with the bank and help you ensure reporting is up to date. We also conduct a review of your existing facilities and arrange to refinance if necessary.
Furthermore, it may be worth having a health check of your current loan structure and facility rates to maximise your lending structure.
Speak with RION today for a health check and reporting plan, so you stay focused on business…
Strata Loans
Strata loans are specialised products available to strata residential blocks and/or commercial and mixed-use properties. To be eligible, you must be:
- An Owners Corporation
- Bodies Corporate, or
- Community Association
Strata loans are typically used for building:
- Structural and Aesthetic improvements
- Energy/Green Energy upgrades
- Facility improvements and upgrades
- Repairs and maintenance
Enjoy investment returns now rather than later by completing the project sooner and avoid rising construction costs without waiting for a sinking fund to be accumulated. Loan repayments can be incorporated into strata levies, and owners/tenants’ disruption is minimised.
Speak with our RION strata loan consultant to discuss lending options and make necessary improvements now rather than later…
Business Loans
This is where commercial property and business lending can cross over. Particularly when using commercial property to secure business debt. It's prudent to note, however, that not all business loans need be secured by property, either residential or commercial. Balance Sheet assets may also be used for security purposes in certain circumstances and products.
Business loans are a general form of lending and can be used in multiple circumstances. For instance, you may be seeking finance to:
- Fund a business project
- Purchase residential or commercial property
- Acquire another business
- Bridge the gap in your cash flow (less common)
- Invest in the business growth or plan
As business loans tend to cover a wide variety of purposes, they can be in all shapes and sizes, including terms of 1 to 30 years, fixed or variable and/or may be pegged to a particular interest rate (i.e. BBSY/W). They tend to be more long-term in nature.
Speak with a RION consultant today to learn more about your business loan options…