In the Australian Financial Review today, “Westpac has stopped lending to SMSFs wanting to buy property in response to growing credit and market risks, regulatory pressure and funding costs” and we are happy to confirm Prudential Finance has SMSF finance available through our investors and private lenders.
Self Managed Super Funds Funding
Call 1300 550 669 or complete to online form at the bottom of this page to discuss your SMSF funding requirements.
Prudential Finance has provided professional finance services for over 16 years and we look forward to hearing from you about your SMSF loan needs.
Once we have solved your SMSF funding, you may be interested in viewing our property investment video click here
Interest rates start from 7.75% per annum and we can lend up to 70% of the property valuation (terms & conditions apply).
Further industry reforms have taken effect 1 January 2018 (Building Bond Scheme) where Developers of residential Strata schemes will be required to execute Mandatory Defect Inspection Reports along with lodging a Building Bond equal to 2% of the final contracted construction cost of the building.
The building bond scheme applies to building work to construct residential or partially-residential strata properties that are four or more storeys. Buildings that are three storeys or under are covered under the Home Building Compensation Fund.
We thought it would be worthwhile to remind yourselves of these changes which I’m sure your already up to speed with these reforms, if not you can find more information on Fair Trading NSW website below and or speak with your property lawyer.
“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.”
Prudential Finance established 14 years has proven relationships with development finance lenders and investors who are interested in providing funds for property development finance Sydney Melbourne Brisbane.
Our private lenders/investors can lend up to $50M+ on senior debt (1st mortgage) and mezzanine (2nd mortgage) or preferred equity (Equity in development company). read more
Prudential Finance is also seeking opportunities to directly invest or loan funds in quality projects. If you have a development project or commercial real estate requiring funding call Prudential Finance.
Mezzanine finance is readily available for projects. Interest rates from 17% p.a. With Banks tightening their lending criteria and in general reducing loan to cost ratios (LCR) down to 70% or less has stressed the development finance market. read more
Investors interested in participating in property development projects or lending money secured by mortgages over real estate are invited to discuss their investment requirements. We have a number of property investment and lending opportunities coming up.
For for extraordinary property development finance Sydney Melbourne Brisbane call 1300 550 669
Development finance applications in Perth Western Australia, Adelaide South Australia, Darwin Northern Territory, Hobart Tasmania will also be accepted.
This was posted on Facebook by BRW. Very interesting reading!
Published 08 July 2014 10:53, Updated 08 July 2014 10:54
Source: Alexis Knight
If one or more of the following scenarios apply to your startup, you need to change them quickly or go back to the drawing board.
THE PRODUCT YOU’RE LAUNCHING HASN’T CHANGED FROM YOUR INITIAL IDEA
If you are launching a product that you sketched out on the back of a napkin and you haven’t deviated from your original idea, then you’re in trouble. It means that you haven’t listened to your market. It is very rare (I’d even say impossible) that someone will have an idea that has product/market fit from day one. Every company has to have a period where its soul aim is to find what that product/market fit is and you need to be obsessive until you get there. This can involve anything from rewriting your product, changing your team, moving into a different market, or saying yes to opportunities you had never considered.
THE ONLY FUNDING YOU’VE ATTRACTED IS FROM FAMILY AND FRIENDS
This might sound contentious, but the reality is if the only funding you can attract is from family and friends, then signs are not great. Sure, they know you well and believe in you, but unless they have direct experience in the industry you’re targeting, then you have nothing but fools’ money. Even at the angel stage you need to try and attract money that you have had to earn, money that validates both you (investors invest in people) and your idea. Early stage funding is not that hard to come by these days (if the people and idea are solid), if you’re not attracting that, then you need to think long and hard about what this might indicate.
YOU DON’T HAVE A CO-FOUNDER
Solo founders are weak founders. Your co-founder doesn’t have to be a tech person if you’re not one and vice versa, but you need a tight team with a solid vision, and skills that compliment each other. Finding the right founder is something that needs time and patience, but a strong team will beat a solopreneur any day. Paul Graham is well-known for famously listing the solo founder as one of the biggest mistakes a startup can make. A startup is simply too much work for one person
YOU’RE PURSUING MULTIPLE MARKETS AT THE SAME TIME
Small teams, on small budgets, need to focus. If you’re pursuing all your options at once then you are spreading yourself too thin and you will fail. You need to find a focus and nail it before you move on to other markets. If you’re having trouble getting traction in one area, fail fast and move on. But if you are focusing on one thing at a time, then when you find the right product/market fit you have a much better chance at success than if you were trying to establish other markets along with it.
YOUR MONETISATION ONLY KICKS IN AT SCALE
If the only way your BIG idea works is at scale, then … you’re stuffed. This is the easiest way to set a startup for failure from day one. Don’t do it. It makes your job twice as hard as it already is.
YOU HAVE NO DISTRIBUTION STRATEGY
So let’s say you have a great product, you have product/market fit and you have a fantastic co-founder. How are you going to get your “world-changing” product out there? Your distribution strategy has to be part of the product from day one. How many times do founders have to say that they failed because they “never got traction” before we wake up to the fact that their failure was a simple one: they had no distribution strategy. How are people going to find your product? If your answer is advertising, then consider it GAME OVER already. How people find your product is part of your product, social sharing should be a key part of that strategy.
YOUR PRODUCT IS NOT SOFTWARE DRIVEN (OR HAS NO PLANS TO BECOME SOFTWARE DRIVEN)
Innovation is accelerating and software is the reason. In the words of Marc Andreessen: “… the minute you can take something that was not software and make it software, you can change it much faster in the future. It’s much easier to change software than it is to change something with a big, physical, real-world footprint.”
You might not be software driven from day one (hell, it’s better if your minimum viable product is NOT) but that needs to be a temporary state.
Software implies one thing; that innovation is a driver. Remember in the future all companies will be technology companies.
*Alexis Knight (not her real name) has extensive startup experience in both running a startup, and working for an investment firm. This article originally appeared on pollenizer.com.
Rich foreigners with the equivalent of $405 million investment applications for visas were approved in April and May.
The “golden ticket” visas were issued to eighty-one successful applicants, the most issued since the program started in late 2012. Of those, eighty-five per cent were issued to Chinese nationals. So far, 255 visas have been issued by the Department of Immigration and Border Protection worth $1.28 billion sine the launch of the program.
To be eligible for the program, foreigners must invest a minimum of $5 million in government bonds, Australian proprietary companies or ASIC-regulated managed funds. The visa allows the receiver and their family to migrate to Australia and after four years they can apply for permanent residency.
Compared to other migrant visas the recipient has no age limit or standard English language proficiency requirements. Majority of the visas have been issued to people investing in NSW and Victoria schemes.
The NSW government’s Waratah Bond program is among those to have seen an uptick in investment. $1.5 million is the minimum investment over a four year, fixed rate with foreigners apply to be part of the program granted they have obtained a NSW government sponsorship.
Chief executive of ASX-listed Centuria’s, Jason Huljich says, “The vast majority of money is going into bonds. Investors want to put their money into something they believe will 100 per cent preserve their capital base. They don’t care that much about low returns”.
There has been a significant growth in interest in the visa program since the cancellation of long-running Canada’s immigrant investor program. It was cancelled in February with a waiting list of 59,000 people.
Michael Burstin of Oliver Hume Funds Management said “We now have over $30 million committed to our fund and expect a further $20 million once current visa applications are approved later this year.”
Bonds are considered an easy alternative for investors who are either unwilling or unable to identify worthwhile private funds to invest in.
Prudential Finance has available development finance – Sydney Melbourne, Brisbane & Perth.
STEINERT TIPS GOLDEN DECADE FOR SYDNEY Stockland chief executive Mark Steinert has denied claims national house prices have peaked, arguing some cities are on the cusp of a “golden decade” of price growth.
Mr Steinert the chief executive of Australia’s largest residential developer believes there is an undersupply of housing in capital cities and anticipates a 4 to 5 per cent compounded growth in house prices for the predicted future due to this demand-supply fundamental. Housing supply will increase with major roads and infrastructure projects, in conjunction with accelerated land releases and planning changes in specific areas.
Morgan Stanley economist Malcolm Wood told investors in a note the current housing cycle was in danger of being held back, if interest rates weren’t cut again. “If you’re an investor, you’ve missed the boat,” Mr Wood said, with a potential oversupply of apartments decreasing their value in inner-city areas and house price growth slowing down.
However Mr Steinert remains positive, with factors such as improved business confidence, greater job security and including migration flow (Australia’s population increases by approximately 34,000 in a month from migrant) adding to the demand of dwellings. Stockland delivers around 5000 homes a year.
The property market in Sydney, Melbourne and Brisbane should show positive growth for the foreseeable future. Property developers have a stable property and finance market to operate in at the moment. Prudential Finance will provide property developers with competitive development finance, mezzanine finance and also joint venture select property development projects.
Since the beginning of 2013 we have seen price gains of almost 50 per cent in some areas across Australia. Although the market is slowing, in-demand suburb prices will keep rising.
Amongst the biggest value shifts during this period are Sydney’s Waitara, North Sydney and Manly Vale, Melbourne’s Caulfield, Armadale and Camberwell. As well as Brisbane’s Hamilton and Healthwood.
Looking at the suburb-by-suburb price growth, gives us a good indication of the potential for future growth. RP Data research director Tim Lawless points out that areas filled with affordable family homes in suburbs dominated by owner-occupiers, are the sorts of areas with room to grow as they are high in demand.
He says there is still plenty of buyer enthusiasm as they sense with RP Data figures showing Sydney area Old Toongabbie in Parramatta, show homes are selling on average within 12 days of listing. In other Sydney areas, homes in Blacktown, Lane Cove and Willouhby are selling in less than 20 days with the median price between $600,000 and $900,000.
We take a look across Australia at each states Top 2 suburbs for both houses and units according to RP Data Research.
Median Price ($)
Median Price ($)
Property Investors, earn higher returns on your money by investing in development finance mortgages go to our Property Investment https://www.pru.com.au/property-investment page with Prudential Finance call 1300 550 669 to discuss current opportunities.
Fears of a housing price bubble have given way to modest expectations about future price rises. The growth forecasts have reduced from 6 and 10 per cent to between 5 and 8 per cent for this year. Experts say property value is unlikely to crash as demand continues to grow due to low interest rates and population growth.
After a consistent rise for over a year, RP Data recorded price falls in May with Sydney dropping 1.1 per cent, Melbourne 3.6 per cent, Brisbane 1.7 per cent and Perth 0.8 per cent. Growth has moderated in the country’s hottest market, Sydney, where prices increased by 15 per cent last year.
Auction clearance rates have decreased in Sydney and Melbourne from 80 per cent plus last year to high 60s and low 70s. However properties in high demand areas such as Sydney’s Western suburbs are selling within a fortnight of listing. Buyers are eager and competitive with sellers accepting offers before auctions.
RP Data research director Tim Lawless believes that market was slowing and prices haven’t peaked but demand exceeded supply. Low rental yield will most likely deter investors in areas such as Sydney and Melbourne where recently the yields have been the lowest and capital gains have been the highest.
With an expected 31 per cent rise in new housing in 2014-15 according to BIS Shrapnel senior manager Angie Zigomanis, prices would weaken in Melbourne but would take much longer to meet demand in Brisbane and Sydney. Reserve Bank interest rates could rise towards the end of 2015, having a negative affect on affordability in 2016.
RP Data’s Tim Lawless said Brisbane was better placed for growth compared to Sydney and Melbourne mainly because prices are 50 per cent lower and yields higher.