The Interest Rate Conundrum

RBA reduces rates causing real interest rates to increase Australian Bank Funding Costs Surging . I warned this could occur in WE SHOULD THANK THE RBA FOR HIGHER INTEREST RATES . What’s concerning is how quickly rates have surged and what impact expected, future interest rates decreases may have on Bank costs. If this trend continues, we will see our … Continue reading

THE FACTS ABOUT CONSTRUCTION LOANS

Recently I had a discussion with a broker who specialises in construction funding and he advised me of some of the problems he was having placing several of his construction loans. After listening to his complaints, I found myself questioning his experience; as it contradicted my own experiences of the past 5 years post the … Continue reading

WE SHOULD THANK THE RBA FOR HIGHER INTEREST RATES

Australia’s higher interest rates have been a huge draw card for foreign investment throughout  the past 5 years of the GFC. Despite certain media reports that Australia has now achieved the “safe haven” status among global investors (a statement that I don’t personally agree with), it’s the RBA’s sensible interest policy that has ensured that … Continue reading

GREEN SHOOTS IN COMMERCIAL FUNDING A POSITIVE SIGN FOR BORROWERS

The USA, is the centre of the investment Universe and what happens in the USA dictates the mode and tempo for markets all around the world. So it is impossible for a Global Recovery to occur if it does not include a recovery in Confidence, Growth and Economic Fundamentals in the USA. As far as … Continue reading

SOLD SOLD SOLD. PETROL STATION SITES SELLING LIKE HOT CAKES IN 2012.

Recently we have seen an almost unprecedented amount of activity in sales involving Service Stations, with $100m’s worth of Petrol Station Sites going under the hammer. More recently it was Woolworths who sold 8 of its Petrol Station Sites http://tinyurl.com/9qyd64e, although prior to this, it was 7 Eleven who sold many of the sites acquired … Continue reading

NEW PRODUCTS ARE MAKING IT EASIER FOR SME’S

SME’s have it tough when it comes to raising finance to help their business’s grow. Even when they are approved , its normally on a take it or leave it basis with facilities structured according to the Banks strict terms and conditions and without much flexibility. Many SME’s have Business Loans secured against residential property, … Continue reading

Beware of Banks Bearing Gifts

Recently I have come across many Borrowers who were pleased about the low Interest Rate they are currently paying on their Commercial Property Loans.  Many of them are paying between 6.00% and 6.50% which are historically low rates, actually lower than some current home loan rates . But these opinions completely contradict the many recent newspaper articles … Continue reading

FIRST IMPRESSIONS COUNT

Like in Business, first impressions are very important when applying for Commercial Property Finance. Many borrowers come to visit me for the first time only after they have unsuccessfully applied for finance on their own. This instantly creates negative sentiment around their proposal as no lenders like to take on business that their competitors have … Continue reading

Loyalty from your Bank and Commercial Property Finance – Do they really mix ? .

Banks often talk about a loyal customer relationships, but their definition of loyalty may be very different to yours. I’m constantly surprised at how many customers fall into the loyalty trap with their banks when trying to attain Commercial Finance. I’m sure the average Joe Blow would define loyalty as an unfaltering relationship between parties … Continue reading

TIGHT CREDIT, HIGHER COSTS, AND SME’S LEFT SCRATCHING THEIR HEADS ?

I am asked regularly why has it become so difficult to raise finance and why have things changed so drastically ? When I established Folio Finance 7 years ago, the economy was flush with cheap money and Banks, Commercial Lenders,  Mortgage Trusts and Private lenders in Australia, couldn’t push their funds out the door quick enough. Commercial … Continue reading