Daniel Pym from Loan Market Double Bay has recently assisted a number of clients purchase and refinance commercial properties, including a petrol station, truck stop/cafe, block of apartments, pub, industrial premises, and SMSF commercial strata block of shops. He’s also had a number of clients pre-approved to purchase blocks of apartments and commercial/industrial properties for investment.
Here’s Daniel’s take on the current commercial lending market:
“We’ve been a little surprised in our conversation with clients, the difficulty they have faced renegotiating existing loans and the sometimes lack of support from existing lenders to assist additional purchases. There is no doubt finance can be harder to obtain today, sometimes taking longer to approve and we’re also seeing a discrepancy between lenders appetite.
Gone are the days when your existing lender will automatically assist, even if you have perfect loan conduct – with banks being very particular about the type of commercial asset they are prepared to lend on.
But it’s not all doom and gloom. The secret to our commercial lending success, even in today’s market, has been to get very clear instructions from clients on their requirements and research which bank have the appetite for the deal, and then negotiate the best terms from there.
What I hear in the market is there is a very strong desire to invest in commercial property right now, securing a property at the right price with a good yield and strong tenant is in high demand.”