Commercial Property Loans

We give our clients access to a panel of over 50 lenders who offer a variety of commercial loan products.

We will help identify what structure is best for you and will depend on whether you are purchasing the property as an investor or business owner.

Different Types of Commercial Property Loans

Commercial property loans usually operate in the same way a normal home loan would.

You can choose between variable rate, fixed rate, split rate, principle and interest or interest only loan structures. Extra fee free features like redraw and offset facilities are usually still available.

We could also look at applying for a line of credit. Which would give you access to a predetermined amount or limit. In this circumstance you’d pay interest on the amount of money you’ve drawn down.

Get in contact with one of the brokers here at LennSure. We can help you find a commercial property loan solution suited to your needs and budget and will be able to give you a clear idea of how much you can borrow and what the repayments would look like.

The Facts

1) Commercial property loans will usually require a deposit of 30%.

2) Commercial property can be a great investment.

3) There is a massive range of commercial property loan products available.

4) Commercial property interest rates can be higher than consumer loan products.

5) GST (goods & services tax) does apply when purchasing commercial property. So allow for the extra 10%. You can claim this back as ‘input tax credit’ against GST charged on the rent.

6) Lessee’s pay the maintenance cost associated with the property. Unlike residential investment properties the cost of rates repairs and maintenance on a commercial property are paid by the tenant not the landlord. which means more of the rent goes toward your profit. Just make sure the contract outlines who is responsible for the ongoing and outgoing property expenses.

7) You’ll find a large number of commercial properties are zoned for a specific or limited purpose. Finding a property with multiple zonings will give you a wider number of potential tenants.

8) As with all property. Location, location, location. Think about where you are looking to buy. Look for areas with established or planned infrastructure upgrades.

Have further questions?

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Industrial Property Loans

If you are looking to purchase a factory, warehouse, yard or any industrial premise for your business or want to purchase one as an investment the loan itself would fall under the Commercial property category.

We have outlined above how commercial loans work but have included some industrial property information below as well.

There is a lot to be said about owning your business premises. If you are a business owner you will know how important it is for your customers and employees to associate the business with a specific location. Leasing can be more affordable short term but who goes into business for short term gain?

Owning your business premise gives you the added security and flexibility to build up the location as your business grows. There are a number of different ways to structure the purchase of your new business location.

You could decide to Purchase Under the Business Name, the property then becomes an asset of the business itself. You can then use the cash flow of the business to repay the loan and build up the equity of the property which can then be used as security for other business loans.

You could Purchase the Property Through a Trust (be that inside or outside of a SMSF) you can then rent the property from the trust “yourself” and keep the assets separate. This will allow you to build wealth outside of the business whilst still giving your business and long standing premise.

Get in contact with one of the brokers here at LennSure. We can help you find an industrial property loan solution that is suited to your needs and cashflow. We will be able to give you a clear idea of how much you can afford and what your monthly repayments would look like.

Residential Property investment

We are able to get our clients access to a panel of over 50 lenders who offer a variety of loan products and solutions.

We will help identify what structure and feature are best suited for you. This will depend on each individual or family’s specific circumstance and needs and objectives.

Different Types of Residential Property Loans

You’ll be able to choose between variable rate, fixed rate, split rate, principle and interest or interest only loan structures. Some additional features like redraw and offset facilities are usually available.

If you are looking to grow your investment portfolio the brokers here at LennSure can help you find a residential property loan solution suited to your needs and budget and will be able to give you a clear idea of how much you can borrow and what the repayments would look like.

Some of the Facts

1) There are a number of differences between a primary place of residence and an investment property you intend to rent out. Some lenders consider investment properties as a higher risk option and will charge higher interest rates as a result.

2) If you already have a primary place of residence you have the ability to use the equity as the deposit instead of needing the cash. As an example if you had a property worth $750,000 with $250,000 left owing on the mortgage the equity would be $500,000

3) As with all mortgages there are other fees and charges that will apply. Instead of coming up with the money again we can structure the loan to factor in these costs.

4) Positive gearing is when the investment income exceeds your interest, expenses and/or any deductions that are possible. Meaning the property is generating a profit. You may be subject to additional tax on any income earned from said property. This will change depending on the structure of the purchase.

5) Negative gearing is when the overall cost of the property. Eg interest on the loan, bank charges, maintenance, repairs, and capital depreciation exceeds the money generated by the property. You may then be able to claim against the loss again this will depend on the structure of the purchase.

Have further questions?

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SMSF Property Loans

Are classed as commercial loans however there is nowhere near the amount of lenders that offer products for Self Managed Super Funds. They can be some of the most complicated structures. Which is why it is important to find a broker with access to a large number of lenders ensuring you have the ability to get the best possible product.

We will help identify what structure is best for you.

Get in contact with one of the brokers here at LennSure. We can help you find a commercial property loan solution suited to your needs and budget and will be able to give you a clear idea of how much you can borrow and what the repayments would look like.

The Facts

1) SMSF property loans will usually require a deposit of 30%.

2) Property can be a great investment for your SMSF.

3) There is a finite amount of commercial property loan products available for SMSF’s.

4) SMSF property interest rates tend to be higher than consumer loan products.

5) Most lenders don’t offer any products for SMSF (Self Managed Super Funds) unless there is over $200,000 in available funds.

6) You can not purchase a property and receive any personal gain. Eg you cant buy a house and rent it out to yourself or a family member.

7) Because of the way SMSF’s are structured you are unable to use equity to purchase another property in the SMSF.

8) Properties purchased in an SMSF must be single title properties. Meaning you can not buy land and then build a house as they would have separate titles.

Have further questions?

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Bridging Loans

We pride ourselves on being able to help all of our clients through the entity of the finance journey.

If you are needing a short term loan solution whilst you are awaiting a build to be finished or you need the money to purchase a new property but you are still awaiting the sale of another asset. Bridging finance may be able to get you the cash now and help “bridge” the gap.

Get in contact with one of the brokers here at LennSure. We can help you find a Bridging loan solution suited to your needs and objectives. We should be able to give you a clear idea of how much you can borrow.

The Facts

1) With bridging loans the lender usually takes over both your current mortgage and the financing of the new property. This total of the debt is referred to as Peak Debt and will include the loan and purchase amounts as well as stamp duty, legal fees and the lender fees.

2) A bridging loan can allow you to borrow 100% of the purchase price of the new property. This can be helpful if you’ve purchased a property that is outside of your borrowing capacity. Assuming it would be affordable upon the sale of your existing property.

3) Where possible it is recommended to make extra repayments to stop the total amount owed growing as you will then also have to pay extra interest on that new amount.

4) Generally speaking the more equity you have the more the lenders will allow you borrow

5) Some lenders will require proof of sale prior to approving you for bridging finance.

Have further questions?

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Development Loans

Are you about to start a new project and need funds. The team at LennSure has extensive experience in the building industry in both residential and commercial settings.

Development finance could be the right solution for you. Whether you are starting a major project, building a luxury home, a housing estate, office blocks or apartment building. Development finance is for significant builds and not for the mum and dad “house flipper”

Get in contact with one of the brokers here at LennSure. We can help you find a Development loan solution tailored to your project’s needs and objectives. Let us give you clarity on how much you can borrow.

Some key points

1) Development finance is typically structured to be an interest only product and usually offer draw down facilities.

2) The loan terms are normally between 6 and 18 months, this does change depending on the nature and size of the project

3) Typically you’ll see the interest on development loans capitalised within the projects development window, it is common to see the total amount including interest charges being repaid upon the sale of the project. In some circumstances the interest can be rolled up into the loan itself meaning there are no monthly repayments.

4) Before applying for development finance it is crucial to have the projects plans and specs finalised. It is also advisable to have the documents proving this at hand. Lenders may be more lenient to borrowers with a proven track record of completed projects.

Have further questions?

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Business Finance

There are a number of factors to consider when looking at and comparing business loans. There are nearly countless products and differing structures with each offering different features, pros and cons. As with all loans the interest rate will have a large impact on how much your repayments will be. In saying this the interest rate is but one feature to be considered. Other things to consider is whether the rate is fixed or variable, what the total repayments could be over the life of the loan, or if the lender offers redraw facilities and if there are any additional fees to be paid for administration.

Are you wanting a business line of credit, equipment finance, working capital loans, business term loans, unsecured business loans, low doc, bad credit, and invoice finance.

Each of these options could be right for you thats why it's important to get this right so get in contact with one of the brokers here at LennSure. We can help you find a Business loan solution tailored to you and your businesses specific circumstance. Let us give you clarity on how much you can borrow and what structure most makes sense.

Business loans can move quite quick allowing you to inject the cash in a short period of time.

Have further questions?

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Equipment Finance

Whether you are looking at a new work vehicle, a tractor for the farm, a new truck, industrial machinery or even a drone for your photography business. The finance specialists here at LennSure will look for the best finance options. Let us know what the serial number is and we can get started for you.

Equipment Finance Lease allows your business to get access to the latest and greatest equipment with out having to dip into the companies capital. At the end of the lease term you can either renegotiate the contract and continue leasing that item or opt to lease a new item.

You can Hire Purchase which suits businesses that want to own the equipment out right at the end of the loan term.

Alternatively, a Chattel Mortgage (or equipment loan) with this loan being secured by a mortgage over the item. This can have tax advantages.

Have further questions?

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