Posts
Case Study – Commercial Office Purchase Made Easy
Commercial Office Purchase – Finance Made Easy
Background
James and Brian were referred to First Point Group by a friend. They run an office based business, and wanted to purchase the premises they were currently leasing. The office was in a high quality eastern suburbs of Melbourne location. The purchase would enable them to own the premises and effectively pay rent to themselves.
First Point Group takes pride in being able to offer our clients solutions for all their finance needs, no matter how simple or complex.
The clients had considered multiple options with assistance from their Accountants and Financial Advisers, including the potential to purchase the office as a superannuation investment. Their advisers recommended that they purchase outside of superannuation via a Unit Trust structure.
The Challenges
James and Brian had an existing Business Bank ‘relationship’, however they felt that their Banker did not understand their business. Their Banker had also changed several times over the past 5 years. James and Brian were interested to know what finance options were available from a range of competitive commercial lenders.
Due to other commitments, the clients required a higher than usual Loan to Value Ratio (LVR) of 75%. Many mainstream commercial property lenders / banks prefer 60-65% LVR, which forces the business / investors to contribute a lot more capital upfront.
The Solution
First Point Group was able to arrange a Commercial loan pre-approval to enable James and Brian to negotiate on the purchase price, rather than negotiate without finance approval. This pre approval was incredibly valuable as James and Brian were able to enter negotiations with complete confidence. We also secured a loan at 75% LVR with a very competitive interest rate and fee structure.
James and Brian intend to also try and secure the adjoining office space over time. First Point Group are assisting them to understand their potential borrowing capacity.
If you would like to talk to the team regarding your next purchase, review or refinance whether you are seeking residential, commercial or asset finance, please contact us to find out how we can help you.
Interest Rate Update – October 2016
No change
The Reserve Bank of Australia (RBA) has just announced it will maintain the official cash rate at 1.50%.
The price of oil rose to almost $US50 a barrel last week, following a decision by the Organisation of the Petroleum Countries (OPEC) to cut production for the first time in eight years.
This, together with some recent solid economic results, has influenced the RBA to hold off any changes to the cash rate in the short term.
The next key financial data will be the release of the quarterly inflation figures on 26th October – a very good guide for the RBA to use to decide if to further reduce the cash rate in November.
For more information, or if you would like a free review of your residential, commercial or SMSF loans against other competitive products in the market please contact Peter, David or Simon via this email, our phone: (03) 9882 2500, or visit https://www.firstpointgroup.com.au
Latest News
Five tips to beat out other buyersMay 8, 2024 - 3:09 pm- Australian banks safe, profitable and liquid, says RBAMay 8, 2024 - 3:05 pm
- Borrowers staying on top of mortgages, despite higher cost of livingMay 8, 2024 - 2:50 pm
