In this edition, we cover the latest news on what's been happening in the finance industry as well as a snippet of our latest funding project which we are currently working on that are certain to be of interest to you.
We hope you enjoy the newsletter and as always, please contact us on 1300 728 796 if you have any questions or need our assistance with commercial finance.
RBA leaves cash rate on hold
The Reserve Bank of Australia (RBA) has left the cash interest rate unchanged, after its monthly board meeting on Tuesday.
The cash rate remains at 3.25 per cent, in a decision that breaks a series of interest rate reductions made by the RBA since September last year.
The central bank said while there was evidence of a weak economy, it believed recent policy actions taken by itself and the federal government would support domestic demand in the period ahead...read more
Source: Sydney Morning Herald 3 March 2009
Market of contrasts
The residential real estate market may seem mired in misery but property specialists say now could be the right time to buy for those investing for the long haul.
Low interest rates, lower dwelling prices and fewer buyers in the market mean buying conditions are the best they have been for some time, RP Data research director Tim Lawless says.
"I really think there are some good buying opportunities," he says. "In the grander scheme of things, even though we do expect property values to go backwards modestly during the first half of the year you've got to keep in mind that that's only 1 or 2 per cent...read more
Source: BRW 26 February 2009
Good-buy paradise
TOUGH FINANCIAL TIMES ADD UP TO FALLING PRICES IN THE QUEENSLAND HOLIDAY PROPERTY MARKET, WHERE BARGAINS BASK IN THE SUN.
Queensland's resort towns, the usual holiday investment havens of cashed-up southerners, have been hit hard by the financial downturn with apartment prices declining by more than 8 per cent in some regions.
Noosa apartment prices dropped by an average of 7.9 per cent, or $30,000, in the 12 months to November...read more
Source: BRW 26 February 2009
Banks lead by bad example
Australian banks have never been known for their humility, so it would serve no purpose to expect any now. They may be right to assert that they have avoided the worst excesses of their overseas counterparts, but they still have much to answer for.
In the shadow of looming high unemployment, highly geared Australians find themselves burdened with crushing home loans, credit card debt and investment loans thanks to more easygoing times when banks were of a very giving disposition. How times have changed...read more
Source: BRW 26 February 2009
Current Funding Project
Hamilton, Brisbane
The riverside and prestigious suburb of Hamilton is in easy reach of the CBD, Gateway Bridge and the airport. It is surrounded by landmarks of Brisbane's past and present including the famous Breakfast Creek Hotel and the international cruise terminal Portside complete with cinema. Hamilton is about 5 km from the Brisbane's CBD.
Hamilton has a mix of old and new architecture and one of the busiest connecting roads in Brisbane, Kingsford Smith Drive. The dwellings in this area include gracious and wonderfully renovated colonials on large blocks and large, more modern brick homes and unit blocks.
B2B Capital is assisting with the purchase and development of 3 luxury dwellings at Hamilton providing an GRV of $11,500,000.
B2B Capital has the ability to supply short term finance for acquisitions, refinance, development and construction for residential, commercial and industrial properties.
We can coordinate and structure finance packages to include the following:
- Senior debt
- Mezzanine funding
- Joint Ventures
This additional financial leverage can facilitate:
- Mergers and acquisitions financing
- An emerging growth opportunity
- A management or other leveraged buyout
- Corporate debt refinancing
- Recapitalization
- Commercial property development
Interest rates and fees associated with any loan approval will vary according to the type and complexity of the loan. All interest and fees will generally be capitalised within the loan facility.
