Finding suitable finance for that next commercial property purchase can make all the difference in the long term net return of the property.
Commercial property normally requires the borrower to provide a higher deposit or take a higher equity position in the property. However there are a select group of lenders that have a more relaxed attitude towards this and the LVR's are higher than most.
Funding commercial property as an investment holding, will normally require the property to be securely leased. The quality of the tenancy, length of the lease, conditions of the lease etc are critical in the assessment of any commercial loan application, as it is this cash flow stream that is one of the most important credit criterion that Lenders will consider.
Commercial office buildings, Retail shops and Warehouse style retail outlets, Factories, Industrial buildings and many other commercial property uses are commonly purchased by astute private investors, Institutional investors and investment syndicates as long term assets within their portfolios.
RFS specializes in sourcing appropriate funding for these investment purchases on the following basis:
Minimum loan amount is $1 million
Maximum loan amount is $100 million (for an individual purchasing entity)
Term loans normally over 1 to 5 years (up to 10 years are avail) and then either rolled over or refinanced at that stage.
LVR's normally 70% but a number of lenders are now offering higher LVR's subject to conditions. 80% is not uncommon and some lenders may consider an even higher percentage via a secondary or mezzanine structure.
Commercial property lending is a specialist sector of the mortgage market and requires the knowledge and experience of a specialist broker and Lender. RFS are familiar with all types of commercial property lending and as such are well placed to source an appropriate loan for your next commercial property investment.
For more information or to make an appointment to meet with an RFS consultant,
