Family Offices in Australia may be interested in a upcoming event being held on 6 December 2018 at The Westin Singapore.

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If you are a financial advisor SMSF finance is available now from Prudential Finance .  The Australian Financial Review today said: “Westpac has rocked the increasingly nervous property market by withdrawing new loan offers to self-managed superannuation funds looking to invest in property.  The bank, the nation’s second largest mortgage lender, and its subsidiaries, Bank of Melbourne, St George Bank and BankSA, will withdraw from lending to small super funds at the end of this month, following a review of funds’ prospects and its exposure.”

Call us today 1300 550 669 as Financial Advisor SMSF Finance Is Available Now!

Prudential Finance has investors and private lenders who will lend to SMSF and Companies for real estate purchases and refinances (subject to terms and conditions).

Interest rates start form 7.75% per annum to approved borrowers.

Australian Real Estate Yields

Residential, Commercial, Industrial and Retail across Sydney, Melbourne, and Brisbane.

• Sydney continues to perform in a balanced manner. Further supply expected for apartments. Overall rental market remains resilient with vacancy rates at the lows. Any pressure on growth or reduced demand for housing offset by further infrastructure investment scheduled.
• Melbourne’s momentum is impressive. Population growth continues to drive new investment. 2017 House price growth surpassed Sydney. Similar to Sydney Vacancy rates continue to compress. Supply will continue to grow over first half of the year. Plenty of activity in Melbourne’s real estate market.
• Brisbane market is operating with a stable tone. Similar with Sydney its expected to see a robust amount infrastructure investment that can offset any weakness in the housing market. Supply has been reduced as we have seen a vast amount of apartments built over last few years and the market is searching for the ideal supply/demand equilibrium point.

• Sydney yields continue to tighten with supply remaining low. Strong rental growth is a trend that will continue. Overseas demand remains strong and its expected to gather pace this pace.
• Melbourne forecasted rents are due to increase and remain well supported. Continued demand from domestic and overseas investors with supply unable to meet demand has seen further compression in yields.
• Brisbane Vacancy rates are seen to increase modestly this year. Similar to Sydney and Melbourne prime office supply has been thin. Further overseas demand seen for high quality assets with strong tenants.

• Sydney supply is low on a historical basis. There continues to be a need for larger size transactions. This creating an attraction for portfolio type opportunities. Infrastructure investment to drive higher valuations.
• Melbourne’s industrial construction levels are at a healthy level. Robust tenant demand continues to drive growth. Similar need for larger size investment opportunities is desired from domestic and overseas investors.
• Brisbane’s yield compression has been a common theme. Rental growth has been strong. Supply remains thin with similar demand from domestic and overseas investors.

• Sydney CBD Rents are at shockingly high levels. Development will be robust over the coming years. Yields have been somewhat resilient. Further superannuation and pension fund interest expected.
• Melbourne’s CBD rents seeing consistent growth with population boom being the driving force. Yields have been stable and expected to compress with investor demand for re-development to remain robust.
• Brisbane CBD leasing market remains volatile. Overall turnover has been less frequent for areas outside CBD. Further development will be closely watched by the market while investors take a cautious stance.

J.O.

Disclaimer

“Prudential Finance recommends that investors consider their own objectives, financial situation and needs before proceeding with any investment and seek professional advice. All information contained within this Website is specifically structured for corporate, business, commercial, construction clients, wholesale and professional investors.”

Melbournes New Suburbs

100,000 lots created by end 2018 with view of creating new affordable housing which is desperately required.

Treasurer Tim Pallas said the release of housing lots would help “make housing more affordable”.

“This increase in supply is also a boost to the construction industry, creating jobs in the growth corridors, as well as in established suburbs,” he said.

New Suburbs:

• North of Melbourne: Lindum Vale, Beveridge North West, Beveridge Central, Donnybrook and Woodstock, Wollert, Northern Quarries
• North-west of Melbourne: Lancefield Rd Sunbury, Sunbury South
• South-east of Melbourne: Minta Farm, Pakenham East, McPherson
• West of Melbourne: Quandong, Tarneit Plains, Kororoit, Mt Atkinson, Plumpton

The required Construction of housing for new suburbs is a developer’s dream indeed but at a cost. Growth Areas Infrastructure Contribution (GAIC) estimated to be $115m for just Donnybrook and Woodstock across Melbourne’s North.

Despite the forecasted lower growth expectation for Melbourne Property Market in 2018 we continue to see a strong amount of interest seeking debt and equity opportunities within the Melbourne real estate market.

For Prudential Finance Melbourne continues to be active region with at least one out of three funding enquires we receive will be for a Melbourne project. Current level of enquiries thus far this year from Melbourne Development companies is up over 75% vs previous year.

J.O.

Development Application Changes NSW

Some important changes that you should be up to speed across Staged and Concept Stage Development Applications. These changes detailed below has implications for any Developers and any related parties/Stakeholders of large scale projects who have pending, or proposed, applications for concept proposals in NSW.

Key changes

• Staged Development Applications will be renamed Concept Development Applications, to better reflect what they contain in practice,
• A Concept Development Application will be able to be followed by only ONE development application for the site, rather than the multiple applications currently required, and
• A new provision (section 83B(5)) will make it clear that the impacts of carrying out the development may be considered when the concept proposals are being assessed, but must be considered where approval to carry out works is sought.

 Reasons for the changes

“The Government proposes to amend the legislation, so it is explicitly clear that staged development applications can include only a concept approval and a single subsequent detailed application. Construction impacts will be fully assessed before any work can start.

“This two-stage approach has become common practice in the development industry. The Government is simply making the legislation clearer to ensure the current pipeline of DAs worth $8 billion can proceed without delay.

“Staged DAs tend to be for larger, more complex projects. A concept approval makes it clear what the high-level planning limits are for a development, including its use, shape and scale, and height which provides certainty to developers, financial backers, stakeholders, and the community.

“Having multiple DAs when one would suffice would create time delays and additional costs to the applicant, with no commercial, technical or community benefit.”

What’s the impact of these changes?

The Decision will terminate single stage concept DAs, and will mean that all concept DA’s need more detailed assessment of Construction Impacts for all stages of the development proposal at the Front End. This could potentially add further costs and time to the concept DA process.

Further information can be obtained from NSW Planning and Environment website below and or speak with your Planning Lawyer.

http://www.planning.nsw.gov.au/Policy-and-Legislation/Under-review-and-new-Policy-and-Legislation/Legislative-amendment-for-concept-proposals

James Okkerse

Disclaimer

“Prudential Finance are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories. Prudential Finance does not provide financial product advice and does not hold an Australian Financial Services Licence. Prudential Finance recommends that investors consider their own objectives, financial situation and needs before proceeding with any investment and seek professional advice. All information contained within this Website is specifically structured for corporate, business, commercial, construction clients, wholesale and professional investors.”

Dwelling Supply across Eastern Seaboard of Australia

We thought it would be useful to illustrate where dwelling supply is forecasted for NSW, VIC, QLD ACT and TAS. Each state has its own technicals (population growth, overseas migration, building approvals, for example) but it’s fair to say that there is a healthy level of Supply that the market will be eager to see how this is absorbed.

It will be interesting to closely monitor what effect excess supply along with potential increases in interest rates will have on the Australia’s House Price Growth. No doubt an increased amount of Volatility will be expected over next 12-18 months.

James Okkerse

Insolvency Legislation Reforms – Safe Harbour & Ipso Facto

Key Legislation changes have been introduced whereby ‘’safe harbour’’ protects company directors from personal liability for financially distressed/insolvent trading companies

Directors are to ensure they have developed a course of action which are reasonably likely to lead to a better outcome for the company and its creditors rather than triggering immediate administration or liquidation.

There is also another layer of legislation which prevents contractors terminating supply and other contracts with the business during the restructuring period, under what are called “ipso facto” clauses.

The objective for the reforms are to encourage company directors to engage early with financial hardship, keep control of their companies and take reasonable steps to pursue a corporate restructure.

It’s also intended to provide a better opportunity for companies to restructure and trade through financial difficulties, when they may have otherwise entered into liquidation or external administration.

Feel free to call us where we can run you through what type of Credit Impaired Loans / Debt Solutions we can offer.

Further Information on Safe Harbour and Ipso can be found on Australian Government legislation link below.

Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Act 2017

https://www.legislation.gov.au/Details/C2017A00112

J.O.

“Prudential Finance does not provide financial product advice and does not hold an Australian Financial Services Licence. Prudential Finance recommends that investors consider their own objectives, financial situation and needs before proceeding with any investment and seek professional advice. All information contained within this Website is specifically structured for corporate, business, commercial, construction clients, wholesale and professional investors.”