THE Gold Coast's commercial property market is currently dominated by private investors and owner occupiers in search of quality products ranging between $1 million and $10 million, says Benjamin Heaney, of Drexel Financial Services.
As a finance professional for many of the Gold Coast's high-end property market participants, Mr Heaney says he has witnessed a noticeable shift in favour of commercial property acquisition in the past 12 months.
"Select lenders have followed this trend with interest, with some lenders opting to lead the race to introduce new and tailored products specifically for 'private' commercial property investors," he says.
"Previously, commercial finance was an onerous process, with the lender requiring two years' financials and tax returns to lend at a relatively low LVR (loan to value ratio) of 70 per cent. This meant that private investors were required to come up with a 30 per cent deposit.
"This was often seen as a drain on capital resources which could be more efficiently used elsewhere," he says.
Mr Heaney says the new wave of commercial loan products includes LVR positions to 85 per cent and LVR positions to 80 per cent LVR without having to verify income through financials.
"This has significantly facilitated commercial property acquisitions for private investors and owner occupiers," he says.
Drexel Financial Services has undertaken significant due diligence on a range of mainstream and boutique commercial products.
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