If you’re running a business and you’re in the market for a new piece of real estate, you should be forewarned – the market is competitive. Companies from all over the world are converging on Australia’s major cities, which is driving prices sky-high and making it tough for smaller businesses to compete.
It will take a great deal of diligence for today’s entrepreneurs to find office space that’s up to their standards and within their price range. It also might take some financial assistance – which, fortunately, is available in the form of low-doc loans.
A snapshot of the Australian commercial market
For an understanding of how the market is so competitive and why so many buyers need low-doc loans these days, you need to look at the macroeconomic trends behind real estate in Australia. According to research from Thomson Reuters, foreign investment has been a major factor, as China, Singapore, Malaysia, Hong Kong and Canada have all been buying up Australian office space.
In the last year, we’ve seen seven buildings sell for over $100 million in Australia, most of them in major cities like Sydney, Perth and Brisbane. This high level of activity is driving prices upward and making it difficult for other, more modest buyers to stay competitive.
Drawing up a strong investment strategy
Are you running a smaller business that’s still hoping to find suitable real estate at a good price? It’s not impossible. Investopedia recommends beginning with a very clear course of action. This includes knowing how much you can afford, what region you’re targeting and what specific parameters you’re looking for in a building.
If you know all of this in advance, you can look actively for motivated sellers and pounce quickly when you find them. There’s no time to hem and haw about your real estate prospects – if you see a good deal, it probably won’t be out there for long, so you need to act.
The loans you need for your big real estate buy
Of course, all of this is sidestepping one key question – what if you just don’t have enough funds to buy the commercial real estate of your dreams? If that’s the case, don’t worry – Redrock has a line of commercial loans available that can help you round up the cash.
Our financial arrangements are flexible and commercially secure. We have a long track record of providing bad credit mortgages at Redrock, which means even if your company doesn’t have a rock-solid credit history, we can still find a way to accommodate you. Just call us up today and find out what we can do for you.