Our Advice? You can Bank on it
The low interest rate story continues… Investor interest in commercial property remains attractive, and rightly so! These rates are appealing and show no rumour of increasing soon. There is no question that New Zealand’s commercial property market is strong, with prices increasing over the past three years (at a faster rate than many other countries), and according to the Reserve Bank of New Zealand (RBNZ), commercial property lending now accounts for about 8 percent of total bank lending.
A robust New Zealand economy has encouraged owner-occupier and investor demand for commercial property, and rental returns are strong, especially when compared to other markets.
While this is good news in the main, and certainly an enticing environment to take advantage of, Viranda is here to guide our clients before any investment decisions are made.
Any commercial investment is significant, and our prudent approach ensures we identify the most suitable properties for you. Just because a commercial investment appears manageable, doesn’t make it right – we are here to shield you from over-leveraging, or an empty building scenario, unreliable tenants, or fluctuations in the market.
Any commercial investment (even in this ‘upbeat’ current lending environment) should be well-researched against market conditions, returns, risk, security coverage, cashflow – the list continues. Our service is comprehensive and tailored to your goals, please contact us if you would like to discuss further.