Tag Archives: looking

To Buy or To Rent Sydney Office Space? – Five considerations to help you decide

June 2, 2020   Loan Tips

Despite the economic downturn, the Sydney commercial property sector is still looking healthy. As Australia looks poised to come out of the financial slump strong, businesses are taking advantage of current depressed property and rental prices and looking towards the future.

The option of buying or leasing commercial property is certainly something that many small businesses will consider. The decision is something that will come to greatly affect the business in the long run and there are many questions to ask. The individual needs of your business will ultimately determine the best option for you, but here are a number of things that every small business should think about:

Upfront Costs: For some businesses, the most limiting factor to buying office space is the large upfront costs. Down payment on typical Sydney real estate is usually about 25%-30% of the total cost, in addition to fees, inspections and other expenditure. However, if you’re in a position where you can afford to, purchasing a commercial property can pay off in the long run and greatly reduce your future overheads.

Variability: Obviously, one of the most attractive incentives for buying is knowing more accurately the costs you will incur for a certain amount of time. Leasing leaves many businesses vulnerable to the whims of the property sector with some leases pegging rental prices to the Consumer Price Index. However, many areas, such as Grade A office spaces in Sydney CBD, experience much less market fluctuation. Consider the variability of the area and grade of the property you’re looking at.

Appreciation: If you decide to purchase commercial space, you’re adding a valuable asset to your business with the potential for appreciation. Of course, this means you’ll need to do some heavy research to find a property that has good potential and will suit your business’s needs.

Depreciation: With appreciation, comes depreciation and tax considerations. Costs incurred from repairs and renovations to tenanted property are handled differently than private property. Lease holders can claim improvements immediately while owners may be required to depreciate their expenses over time.

Potential Growth: Finding a space that suits your business is very exciting, but what about the future? For many newer businesses, leasing could be the preferred option as it allows them to expand their more readily and with fewer limitations. Keep in mind that if you do outgrow your space, you can always lease the premises to help with the cashflow. Or you can consider initially purchasing a larger space and leasing part of the premises to another business to help cover some of the overheads.

These are just some of the many considerations that will help you decide if buying or renting is right for your business. An attorney or financial consultant will also be able to provide more information that is more specific to your business needs.

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Auto Loans – Bad Credit Is Not A Problem

May 27, 2020   Auto Loans

Bad credit is a very prevalent problem, but that does not mean that people with bad credit do not get auto loans. Many lenders out there cater to people with bad credit. Yes, bad credit can mean that you would have to do extensive homework while looking for that loan for your car. It might also mean that you will have to pay higher interest rates on the loan as compared to interest rates offered to people with good credit.

Do not let bad credit stop you from getting that car that you want and need. However, you do need to be careful with your loan. This is because a single missed payment on the loan can further ruin your credit. Moreover, if you are working on building your credit back, you definitely do not want to miss a payment.

Secured Loans

Now let us talk about different types of auto loans available to people with bad credit scores. Almost every dealer and lender would provide secured bad credit car loans to their customers. As the name suggests, the customer has to provide collateral to get this type of car loan. The car itself can be used as a security. The lender would already know the value of the car, so deciding the amount that can be offered would not be a problem. However, as a borrower, you must take care that you do not miss a single payment. Missing a payment would mean loosing your car.

Unsecured Loans

You also have the option of going for unsecured bad credit auto loans. Again as the name suggest, the borrower is not required to offer collateral for unsecured car loans. To get unsecured loan for your car, you need to provide documents that would prove your financial credibility. Your bank statement and income proof would work. Identity proof and documents relating to your financial status are some other documents that the lender would like to see before he/she processes your application.

Avoiding The Middle Man

People with bad credit can also get auto loans from banks and other financial institutions. The dealer acts as the middle person in the auto loan process. By skipping the dealer and going directly to the bank, you can get a loan for your car at much lower rates. You would obviously need to convince the bank that despite your bad credit scores, you are in condition to repay the whole loan. Again, the bank will be looking at your financial status to determine whether you qualify for the loan or not. In addition, if you do qualify for the loan, the bank will determine for how much.

People with bad credit do need to spend some time looking at the various loan options available to them. You must not take any decision in haste. Carefully compare various loan offers. Furthermore, bad credit does not mean that there is no room for bargaining when it comes to auto loans. However, you can only bargain if you know how to shop for car loans and know what you are looking for.

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