Blog
Case Study: Townhouses Construction Funding
Our client, an experienced residential developer was seeking funding solutions for a luxury townhouse development comprising 39 terrace homes and a recreational hub with a resort pool, BBQ, and outdoor dining precinct.
The biggest challenge currently facing developers, is rising construction costs. In this instance, the final negotiated construction cost came above the original feasibility studies.
Case Study: Keystone Residential Developments – Motif Bridgeman Downs
Keystone Urban Developments, a Brisbane-based residential developer, approached us to assist them in securing funding to complete a 70-townhouse project in the North Brisbane suburb of Bridgeman Downs.
Overview
Keystone were considering whether to construct the project in one go, or over the approved two stages, seeking STAC's assistance to structure and negotiate debt facilities that would allow them to drive the project forward efficiently, while maximise returns.
Yet More Interest Rate Rises to come – Why You should Do Something NOW (before it’s genuinely too late)
The latest rates forecast from one of the major banks (CBA) this week is that we can expect a further 1.25% of RBA interest rate rises over the next few months, bringing the target cash rate to 2.35%. This represents a 2.25% increase and can potentially take a low-risk commercial borrower, or your average home loan, to a rate of about 4.5 to 5% - roughly doubling the interest bill in a ridiculously short period.
Brisbane “Flood-Affected” Land Subdivision
Ever heard the saying "the thing about common sense, is it's not that common"? Also on this deal - a bank doing a 60% LVR for site finance - that's definitely pushing boundaries. Particularly for a site that was flood-affected with the "rain bomb" that hit Sotuh East Qld.
The Easiest Way to Reduce the Interest Rate on your Commercial Loan?
Many floating (variable) rate commercial loans with banks are priced based upon a market rate called the "Bank Bill Swap Rate", known as BBSY or BBSW (slight difference between the two, some banks quote one, some the other).
Four Property Investment Mistakes to Avoid
Learning how to invest in property like a pro takes time, and if you’re new to the game, it’s easy to make rookie errors.
Here are four common mistakes to avoid when buying your first investment property.
Pre-tax time checklist for property investors
If you’re like most property investors, trawling through boxes of receipts to tally up your allowable deductions is probably not your idea of fun. So, how can you make tax time a little easier?
Understanding the cash rate increases
News of the Reserve Bank of Australia’s (RBA) decision to again increase the official cash rate, although not unexpected, has left many homeowners feeling more uncertainty and worry than ever before. For some, it’s the first time they’ve experienced interest rates rising, let alone a few in succession.
Your Cash Rate Questions Answered
Lenders often pass on the rate rise to variable loan holders via an increase in their variable interest rates. Even a small increase in your variable interest rate could have an impact on your repayments.
Interest Rates Are Going Up Today – What’s Next?
Today’s the day – for the first time since 2010, interest rates are going up. Pretty rare for the RBA to move rates in the middle of an election – and of course both sides of politics are talking utter BS about their impact on rates (as usual!!). And no, Clive Palmer doesn’t have any ability whatsoever to keep rates below 3%, nor is it likely that either Labor or Liberal will have a better chance than either of controlling rates in between now and the next election.
How to Make a Pre-auction Offer
With auction clearance rates soaring above 80% in many markets in recent weeks, the competition amongst buyers for properties is often fierce.
Unlocking the Equity in your Home, to Invest in more Property
It's no secret – South East Queensland is currently one of the hottest property markets in Australia, with residential property values increasing by more than 30% per annum (and in some parts of the Gold & Sunshine Coasts it’s been much higher!). Have you missed the boat to buy more property
Thinking of Building a New Home? Read This First!
The home lending landscape has changed dramatically since we were first impacted by the COVID-19 outbreak, and the big question is, have you taken the timed to assess your current situation?
Right now, variable rates are more competitive than ever, and if you’re not leveraging and taking advantage of these rates, you could be doing yourself a serious financial disservice.
Case study: Bank vs Non-Bank Development Finance is NOT Clear-Cut
Keystone Urban Developments, a long-term client of STAC Capital, asked us to provide them with various development finance options for their next townhouse project, comparing key factors including the cost of debt, pre-sales requirements and gearing (LVR and LTC/LCR).
Case Study: Funding for 99.5% of TDC on a Townhouse Project
The developer’s capital was tied up in another project, impeding their ability to get into another project in the short- to medium-term. Actively looking at sites where he could engineer equity, through uplift by obtaining favourable terms - but with such a hot market for development sites, vendors are increasingly aware of their negotiating strength, making it very difficult to acquire sites on terms that allow for extended DD and for DA to be achieved prior to settlement.
Case Study: Apartment Development Site Acquisition
An experienced developer engaged STAC to seek site finance for their acquisition of a development site in a premium inner-city suburb.
The site “as is” was two industrial sheds with an overlapping DA for residential units. With a short WALE (weighted average lease expiry) on the shed leases, the holding income didn't tick banks' boxes. They also wanted to maximise leverage on the acquisition as they had several other developments requiring further capital injections.
Are industrial property investors cognisant of their property values in the current market?
With industrial property having been one of the best performing asset classes in Australia since COVID hit, we've seen too many examples to count recently, where a fresh valuation of industrial property has seen significant uplift from earlier valuations or investors expectations - and also where clients have sold a property well above what they thought it was worth.
The well documented increase in demand for industrial assets has compressed yields beyond anyone's expectations, with many investors are getting a pleasant surprise!
Don’t lose the house you love because your finance wasn’t approved on time
The home lending landscape has changed dramatically since we were first impacted by the COVID-19 outbreak, and the big question is, have you taken the timed to assess your current situation?
Right now, variable rates are more competitive than ever, and if you’re not leveraging and taking advantage of these rates, you could be doing yourself a serious financial disservice.
Keep your bank honest! It might be time to refinance your home loan
The home lending landscape has changed dramatically since we were first impacted by the COVID-19 outbreak, and the big question is, have you taken the timed to assess your current situation?
Right now, variable rates are more competitive than ever, and if you’re not leveraging and taking advantage of these rates, you could be doing yourself a serious financial disservice.
Case Study: Staged Development Finance
A residential developer sought STAC Capital's assistance with funding for 45 townhouses in McDowall over two stages.
The Challenge
Only six months into COVID, there was significant uncertainty in the market with respect to development funding, as sales in residential projects had slowed.
Banks' at this point were mostly focused on reviewing and assisting their back-book of clients who were going through tough times - new funding for large projects was not of too much interest. The client had fortunately staged this development into two stages, being 24 townhouses to be delivered in Stage 1, and 21 townhouses in Stage 2.
Case Study: Purchase & Fit-Out of Owner-Occupied Commercial Property
A prominent luxury residential developer & builder contracted to purchase a city-fringe light-industrial building, which they were going to fit-out to make their own office.
Banks will often structure this as a standard property loan for the purchase, with a separate Equipment Finance loan on a significantly shorter term of around 5 years for the fit-out - which can mean hefty repayments - e.g. a $500k fit-out would cost about $110k per year in repayments, PLUS the property loan interest/repayments.
Case Study: Funding a genuine 100% of TDC on $30m project
An established developer approached STAC asking how they could accelerate their project pipeline, with the limited capital they had already tied up in existing projects.
The client had proven to be a very capable developer over several projects that STAC had negotiated their construction finance for; they had delivered quality projects on time & budget, well received by buyers.
With a limited balance sheet but strong capabilities, we were willing to offer them a syndicated Preferential Equity structure that would have us backing the clients with our own personal funds.
Case Study: Over 96% of TDC with Pref Equity
An established developer approached STAC asking how they could accelerate their project pipeline, with the limited capital they had already tied up in existing projects.
The client had proven to be a very capable developer over several projects that STAC had negotiated their construction finance for; they had delivered quality projects on time & budget, well received by buyers.
With a limited balance sheet but strong capabilities, we were willing to offer them a syndicated Preferential Equity structure that would have us backing the clients with our own personal funds.
Case Study: Industrial Property Lending
Our client had a good relationship with their bank for their industrial property lending, but they weren't sure whether their loyalty was being rewarded with good rates.
Although they wanted to test the market to see if they could secure better terms, their preference was to not need to refinance.
On top of this, they also wanted a small increase to undertake upgrades to the property.
Case Study: Site Acquisition
Relatively young developers with solid experience but light on equity approached STAC Capital’s Dale Sparke for advice on how to increase their development pipeline with minimal equity
Case Study: Building Fittings & Fixtures Importer
Our client is a leading Australian importer of building fittings & fixtures (toilets, vanities etc.) from China, wholesaling to many of the household-name retailers across Australia. Growing rapidly at a CAGR (Compound Annual Growth Rate) of over 30%, their previous 12 months’ turnover was about $35m.
Case Study: Importer & Wholesaler
Our client, an auto parts wholesaling business with ~$100M turnover and nationwide operations, had been with their existing bank for about 10 years.
Although they had a relatively low level of gearing relative to the size of the business and their financial performance, after asking their bank for an additional $3m of funding, more than s months later they were still waiting. Furthermore, upon initial review by STAC, we were of the belief that the fair market interest rates & fees relative to their position was lower than they were being charged.
Case Study: Supermarkets Group $12m Acquisition Line
STAC Capital’s Dale Sparke was engaged by an owner of multiple IGA stores, seeking solutions to fund the acquisition of additional stores that fit within the acquisition parameters of the group.
100% LVRs for Owner-Occupied Commercial Property
100% LVRs for Owner-Occupied Commercial Property
This is genuinely possible – so listen up if your business is currently renting.
Case Study: Import/Wholesale business – Refinance, M&A funding
The owner of an industrial import/wholesale business had two leading priorities, (1) acquire "bolt-on" businesses to grow the size and product offerings of his business and (2) buy a new high-end family home.
Material shortages and the impact on Constructions Costs (and how to protect yourself)
If you haven’t heard that construction costs have gone through the roof, you must be living under a rock – or at least you must have been lucky enough to get your roof trusses before 2021!
HomeBuilder was a great idea to save the construction industry from certain collapse. Unfortunately, like so many government schemes, something goes wrong in between the concept and the aftermath.
Property Prices – who predicted that early last year?
I’ve always been a bit sceptical of economists, but I’ve completely given up listening to them now.
Imagine if you turned up to work everyday and got everything wrong, but that would be ok! If you asked your lawyer for advice and then you got sued by someone for heeding that advice, would you ask that same lawyer to defend you?
Repeal of “responsible lending laws” – what repeal?
Anyone who has had to go through the torment of applying for a home loan since the Royal Commission thought this was a great idea – immediately after the Libs made their intentions known in the media, the phones started ringing with people thinking it was a done deal.
Lender Risk Appetite – all over the place…
Non-banks have HEAPS more risk appetite – as noted above, we’re regularly writing property development finance around the 70-75% LVR (on GRV, which equates to 85+% on TDC) – and we’ve written a number of deals well over 90% of TDC (which yes, means the developer is putting in less than 10%, a fair bit less where there’s also site value uplift).
Cheap money – really really cheap
BBSY is pretty much zero, which means that all you’re paying a bank for commercial debt, is their margin & fees. Long-term commercial property lending, the norm is now 2.0 to 2.5%pa (and we regularly renegotiate clients’ loans into this bracket that were being charged more), really strong deals (low LVR, strong tenants with a long WALE) can be in the 1’s.
Case Study: Acquisition of Caravan Park / Future Development Site
Our client was seeking funding to assist with the acquisition of the 'Springtime Gardens Caravan Park', a strategic landholding with future development potential, fronting the M1, with a reliable holding income from permanently let tenants.
Case Study: 16 Lot Resi Subdivision with Builder Put & Call Options for Sales
STAC Capital was engaged by a developer following the issuance of DA to seek development finance for a 16-lot residential subdivision. is our standard process, we engaged a trusted valuer immediately, before approaching any lenders.
In this instance, the valuer could not support the projected sales prices the developer had used in their feasibility.
10 Things to Get Right, to Avoid Abysmal Failure when Buying a Business
Every day there are literally hundreds of new businesses opening their doors or new owners looking to taking over existing businesses. On the sale side, the number of businesses coming to market has undoubtedly been increasing, partially driven by a wave of SME owners being Baby Boomers wanting to retire – ABS stats from 2013 (now 8 years old) had a massive 38% of businesses being owned by people aged over 60!
Case Study: Mixed-Use Site Finance without DA – Burleigh Heads
Our client had a large site on the Gold Coast under contract for some time while they worked through the DA application for a mixed-use service centre & industrial development.
Although it was originally expected that they would have DA before settlement of the site became due, complications experienced with needing approvals from multiple local & state government departments meant that they were going to have to settle prior to achieving DA.
Case Study: Going-Concern Childcare Centre Development
This project was their foray into the childcare sector. In most cases, childcare developers will sign a long-term lease (10-15 years) with an established third-party operator. In this instance, however, our client sought to leverage our connections and experience to establish themselves as a successful operator as well as property owner, i.e. the full “going concern”.
Bank vs Non-Bank Solutions for Property Development Finance
“I want the cheapest rate” is one of the most common phrases heard in Banking & Finance. But, is the cheapest rate always the best option? Not always, and here’s an example why.
Case Study: Construction Funding
We regularly assist developers of all shapes and sizes by understanding their project goals and objectives, then structuring & negotiating optimal funding solutions.
Should you Invest in Personal Risk Insurances?
I had a client a number of years ago – only in his 30’s, was doing well for himself in business. He was one of those blokes that ordered the grilled fish & salad when everyone else ordered battered & chips, exercised every day and was fitter than most.
The Fundamentals – Financial Forecasting
When assessing business lending applications, financial forecasts are one of the key pieces of information that lenders will ask for.
Is Finance Killing the Viability of your Property Development?
Sometimes cheap bank debt is not actually so cheap. Sometimes non-bank finance that seems to be a great alternative can kill a project. At STAC we’ve written before about non-bank finance being a great alternative, but then we’ve negotiated plenty of bank development finance deals.
Case Study: Maison New Farm by GRAYA
GRAYA is one of Brisbane’s most high-profile residential building and development companies, having completed many iconic residences over the past few years. Headed up by brothers Rob and Andrew Gray they wanted to branch out and bring their construction and design pedigree into the multi-residential space.
Acquisition & Growth Funding for Independent Supermarket Group
A corporate privately-owned supermarket operator had already acquired a number of supermarkets in SE Qld and was seeking debt funding to continue expanding their footprint and take advantage of opportunities quickly and confidently.
Business on a Cliff Edge, worried about the Bank?
Based upon what we’re seeing thus far, we are expecting banking relationships to mean even less as we enter this economic recession. So what should you do, if you’re not absolutely 100% certain that your bank will look after you?
Banking & Finance COVID update (Aug-20)
LVRs pulling backs, increased interest rate margins, appetite reducing in general; all of the above have definitely happened since March, in some cases quite markedly. There’s plenty of talk about banks being closed for business, whilst all of the banks profess “we’re open for business”.
It’s pretty fair to say this has all been pretty typical – and the goal posts have been moving almost weekly – BUT… Whilst there absolutely are now some closed doors, this is NOT across the board. Our guess is that it’s not over yet though…
Development Finance deal examples amidst COVID19, with Everett Development Management
Mark Trayner was the guest presenter on Everett Property Development Management’s “Property Feed”, discussing development finance amidst COVID19, with a few live examples of deals recently financed, including: Luxury $3m Spec Home renovation & construction 5 Lot in-fill residential land subdivision with high LVR including Mezzanine debt Multi-Stage 45 Townhouse development with a Bank Commercial […]
Distressed Debt Restructure – Case Study
Industry: Professional Services Funding: $5m Leverage: >4x EBITDA, ~2x adjusted for WIP Term: 2 years Purpose: Refinance Bank, ATO, Unsecured Creditors Security: Charge over Firm entities, Personal Guarantee A professional services firm with gross revenues of circa $7m pa had found itself under significant financial pressure – not because of a lack of profitability, as […]
COVID-19 Support from Banks & Govt – for Individuals
In this incredibly daunting time, there’s plenty of confusion out there as to what help is available for businesses; we’re fielding so many calls & emails that we thought it best to lay it out (although please note that it may be a challenge to keep this up to date, given how fast this is moving).
COVID-19 Support from Banks – for Businesses
In this incredibly daunting time, there’s plenty of confusion out there as to what help is available for businesses; we’re fielding so many calls & emails that we thought it best to lay it out (although please note that it may be a challenge to keep this up to date, given how fast this is […]
Debt Strategies amidst the COVID-19 Crisis
I’ve been trying to put together an update of banking & finance as I see it for the last week, but the world is moving at such an incredible pace wherein 2 day old news is obsolete. As a perfect example, Westpac’s chief economist was just late last week forecasting unemployment of 7%, but just […]
Corporate Deal Case Study – UCG
Banks have become increasingly conservative, particularly for true cash-flow lends with no tangible assets as security. But STAC achieved an outcome far beyond that expected by its client.
4 Critical Factors to getting Commercial Finance Approved
Getting banks to approve commercial deals is no easy game anymore. Go back 10 years (actually, make that about 11 and a half to 12, before that dirty 3-letter word “GFC” came into existence), if a deal made sense, then just about every bank would write it. It came down to who you had a […]
Is Government Debt Good or Bad? (and did Kevin07 destroy Howard & Costello’s outstanding economic work?)
Is ScoMo right that that it would be irresponsible to rack up more debt now, by fast-tracking infrastructure spending? And did Kevin07’s government destroy all the good economic work that Howard & Costello did, by going on a typical Labor spending-spree racking up stupid amounts of debt after the slate had been wiped clear after […]
RBA’s hammer finds only screws, no nails: Parliament House full of tools, none of them screwdrivers
Lowering the RBA rate is no longer going to do what traditional economic theory expects, and Philip Lowe knows it. In fact, he’s shouting it (as best he knows how) at ScoMo & Frydenberg. But ScoMo has the latest noise-cancelling headphones on, with the volume turned up to the latest Christian Rock song, singing “everything’s […]
How Low can the AUD go?
There has been continued downward-pressure on the AUD recently, this morning sitting below 68c on what has been a consistent downward trend for about 18 months (late January 2018 was ~81c). Below is the 5 years chart for the AUD/USD (Source: OFX), which provides food for thought as to how much it has moved in the past. […]
Site Acquisition at 65% LVR
Banks are even more increasingly uncomfortable with providing finance terms on site acquisitions that developers want or need – on large sites there’s next to no appetite, on smaller sites the LVR will often be capped at 50% at best, or pulled back to around the 35% mark particularly if the development is not proceeding in the […]
Bank funding $8.8m for 32 Townhouses with less than 25% Debt Cover
Being an expert ONLY in Development Finance can be like having the blinkers on, particularly if the Developer’s wider Group includes other income sources. In this case, with the developer wishing to only have minimal pre-sales prior to commencing, the standard train of thought would have been that a non-bank lender would be the necessity. However, based […]
I have a Strong Relationship with my Bank
If we had a dollar for everytime we’ve heard this, particularly over the last 12 months… “I’ve been with my Bank for [insert big number here] years, I have a really strong relationship with them, my banker has always looked after me.” Good for you. Unfortunately, far too many times to count now, we’ve subsequently […]
In-Fill Subdivision Finance with No Pre-Sales
Small-lot in-fill subdivisions can be great little projects – getting in & out quickly with good profit margins can result in solid returns on an annualised basis (IRR, for the finance geeks!). For small projects and relatively inexperienced developers though, banks often aren’t keen; particularly when there aren’t yet any pre-sales (which are notoriously hard to get […]
Townhouse Development Finance with No Pre-Sales
With projects requiring less than $10m in debt, when we present our clients with the pros & cons of Bank vs Non-Bank development finance options, it is increasingly rare for developers to choose the cheaper bank option. Why? With this project, the developer “just wanted to get going” on this small townhouse project, with no […]
Think that a Commercial Interest Rate in the 4’s is cheap? Think Again…
In a record-low interest rate environment, if you’re not aware of where the market actually is, it’s very easy to think you’re getting a great deal, when you’re actually paying overs. Commercial Property Investment is a perfect example at the moment. Think that a rate in the 4’s is amazingly cheap? Depends. If your debt […]
Leigh Blain Joins STAC Capital
We’re really excited to announce that Property Finance expert, Leigh Blain, has joined the STAC team! Leigh is a leading expert in Property Finance, with over 15 years experience in development & commercial investment, having held Senior Management roles in Westpac and NAB. In the 5 years prior to joining STAC in 2019, Leigh was […]
2.5% Interest Rates creating opportunities for Developers & Investors
The RBA’s announcement today saw the cash rate drop to a historical low of 1.25%. Add (subtract?!) to that, many economists are tipping another cut, which does tend to be the RBA’s norm (the previous rate cuts being May & August 2016, February & May 2015, May & August 2013, October & December 2012…). Some […]
Credit Tightening & the need for Professional Debt Advice
Too often we’re seeing the goalposts getting moved when businesses and property developers/investors seek debt, as many funders have been changing their appetite. In business, you’re already juggling 100 things - can you afford to be doing 101, particularly when debt is such a high risk game these days? What opportunities are you missing out on by spending your time doing something that we've got the expertise and the time to do?
2 Common Major Mistakes in Business Finance
2 Common & Major Mistakes in Business Finance - (1) giving every asset as security for every loan to your bank; and (2) Not providing clear communication to your bank around the strategic direction of the business.
Opportunities & Risks in M&A
Mark recently presented on the opportunities and risks in using debt & equity for M&A (mergers & acquisitions) to grow a business. Have a flick through the slides and brief commentary…
So the Bank Declined your loan….. now what?
Often the “Declined” conversation is short and uncomfortable - after all most people hate bad news. But these events can be a rich source of information to build a better business & banking relationship…….
10 Questions your Banker Should be Asking
Do you have a good business banker? If they haven’t asked you these 10 questions, chances are you don’t have the right support on your finance team…
Smiddy Charity Ride – the brief story & pics (and WHY I did it)
As I write this now, I’m thankful for being lucky enough to be sitting in a warm and comfortable hotel room in Adelaide, injury free and off the saddle, as I think about what has just been a week of highs & lows on the Smiling for Smiddy charity fundraising ride in South Australia.
Time, Money & Missed Opportunities……
Are we there yet?”. This old chestnut from the kids in the backseat is increasingly heard from the mouths of Bank customers as they seek to navigate the paths to finance approval. This week we explain a little of why it’s taking so long to get finance & also why the finance you do get approved is likely for a shorter term…..
Tougher funding for business ahead
The Royal Commission handed down plenty of recommendations, many of which hit the headlines. But one that didn’t, relates to “small business” lending - which isn’t so small, and poses the risk of further credit tightening for businesses that nobody would call “small”.
Considering using Mezzanine Debt on your next Development, because your Equity is still tied up in the last one? There can be a better way…
With sales now taking longer to lock in and settle, property developers often have unsold stock when construction has completed, which can leave them either being unable to payout the construction debt, or having equity tied up that is needed for the next project. This is often a problem because equity and profits naturally lie […]
3 Questions Professional Advisers should ask when completing Client Reviews
Ponder this thought for a moment:
How often does a client hand you a detailed scope of required services, clearly defining exactly what it is that they want you to consider/analyse/produce/etc.?
The Danger of having One Bank & Cross-Collateralised Securities
Loyalty used to truly mean something in banking. Aside from questioning whether the loyalty is returned, being loyal to just one bank can actually be a dangerous game to play.
STAC secures Construction Funding with favourable FIRB terms for high-rise apartment project
STAC recently had quite an impressive achievement with a funding approval that, to be frank, we expect that many people may not believe – because it’s a good deal even in the good times, let alone the current funding environment. The developers of an inner-city project had recently completed stage 1, comprising more than 100 […]
Is Tightening Credit Creating a Risk of a Recession in the Australian Economy?
We’ve been discussing the increasing risk of a recession being triggered, as a result of continuing tightening of availability of debt funding from Banks to SMEs, for quite a while now (probably about a year or so); perhaps not publicly, but definitely on a weekly basis over coffees and by phone with many professionals in […]
Personal Reflection on 2018
New Year’s Resolutions Everyone does them – or everyone is “supposed to” do them, right? Our plans for being a better person or achieving more, which we’re so passionate about on the 31st December… But often by the time the 31st January comes around, they’re usually long forgotten! So this year, based upon some very […]
Buying your Home at Auction with Confidence
f 2019 is your year to buy a new home, the dream home you find may well be sold at auction… But do you have the confidence to buy at auction? “BUYER BEWARE” Thanks to the Royal Commission, the process and timeframes to get a home loan approved is causing problems in the market. But […]
Happy New Year!! (and brief 2018 reflections & 2019 forecasts)
2018 saw some pretty reasonable changes in the economy… What do we see for businesses and property in the Australian Economy for 2019?
“WHERE IS OUR $14,000,000??”, said the developer to their banker, for the umpteenth time.
Having gone around in circles with their existing banker for over 3 months, trying to lock in the consistently promised approval for construction of their 54 townhouse project, they were getting beyond frustrated. Well to be honest, having completed earthworks and a fair number of slabs – off the back of the promises that approval […]
Where is Brisbane’s Property Market heading in 2019?
We recently caught up with Brendan Whipps, CEO Harcourts Qld, and Martin Millard, MD Harcourts Solutions, to ask them what they see in store for Brisbane’s property market in 2019. Check out these two 50 second videos to find out what they see ahead! Video 1 of 2: Video 2 of 2:
What’s the REAL Cost of Business Debt?
Think that a “good deal” in business finance is all about the interest rate & fees? Think again. Before you sign on the dotted line, realise that business finance is rarely that simple…
We look at true cost of asset finance, working capital finance, as well as the VALUE OF EQUITY, and whether it pays to pay more.
How much does a mortgage broker cost you?
Have you avoided using a mortgage broker because you think you'll get a better deal by going directly to a bank? In this episode of Tom's Tips, Tom explains how most mortgage brokers don't charge anything to their clients - and that it doesn't cost you in any way, in fact you probably have a better chance of getting a better deal than if you went to a bank yourself!
Is your Home Loan Rate Over 4%?
What is your home loan rate? If it’s over 4%, LISTEN UP. Want to know whether you can get a better rate on your home loan? Here’s where you start. Check out your loan statement or your online banking and figure out what you’re paying right now. If it’s more than 4%, drop us a […]
Be careful what you believe
Disappointing to read yet more media fear mongering from a writer who either doesn’t understand what he’s talking about, or chooses to miss the facts. Whilst it can be difficult to see through BS, there are a range of points presented here that we have the insight to challenge.
Home Loan Myth Busting with Tom Kelly
There’s a lot of confusion about what’s involved in getting a home loan. Let’s kick things off with three of the biggest myths.
“Bricks and Slaughter”
Do we have a major economic problem in Australia? In our opinion, yes and no, which is exactly what we’ve been saying to people for a long time now. Here’s our perspective on the recent 60minutes episode, which ‘exposes’ Australia’s housing crises.
A Spring in Brisbane’s Property Market Step
Well, here we are…Spring. Where life begins, flowers blossom, days get warmer, and we start to think about how fast the year is going. Well at least that’s the case for most. I start to think about the real estate market.
Childcare – is it the cash cow it’s cracked up to be?
It’s safe to say there is a lot going on in the childcare sector at the moment. But is making good returns as easy as people would suggest? We explore the critical success factors to a successful business.
Mezzanine Debt. The Good. The Bad. The Ugly.
It's understandable that people are pretty confused about the difference between Mezzanine, Preferential Equity and Joint Ventures. Are they as bad as people say they are? Mark Trayner discusses.
Queensland Budget 2018
The Queensland State Government announced the budget for 2018 - 2019 earlier in June. Here’s our summary of the key announcements and changes that relate to property development, including a reduction to The First Home Buyers Grant.
Deal Breakers
Securing finance is one of the biggest and most important stages in the project lifecycle. And, it can be an extremely time consuming process, depending on the size and complexity of the project. But, it’s also one area that tends to be the least understood, and not given its due preparation, which can lead to negotiation breakdown.
1 July GST Changes
Disclaimer: GST is possibly the most boring topic known to man. We did our best to make this update bearable. We don't think we succeeded. However, it's none the less important to understand what is happening as it effects just about everyone operating in the property sector.
Budget in Review
STAC Capital had the pleasure of attending both Westpac’s & NAB’s Budget presentation last week. General consensus appears to be that the 2018 Federal Budget is very much a pre-election budget with nothing too exciting to write home about! But in any case, here’s our review.
Brisbane’s Premium Market Benefits From Cashed Up Retirees
Cashed-up downsizers are propelling Brisbane into a global list of top-performing cities for the first time. An article in last Friday’s edition of the Courier Mail outlined that increased demand has propelled Brisbane into a global list of top-performing cities for the first time. For the first time in the seven year history of Knight […]
All signs are pointing to credit tightening.
The Royal Commission is in full swing. The effect on the banks is not just scaremongering – down in the trenches, we’re very much seeing significant tightening by the banks, both in commercial lending as well as in home lending. Mark Trayner outlines the changes and their implications.
There’s no “I” in Property Development Team
Think that you can run a property development by yourself, in a simple logical order? Forget about it. The best developers leverage a strong team that works in harmony to achieve outstanding results thanks to well planned strategy. Here's some key pointers from us.
Brisbane Property Market – Bull or Bear?!
There seems to have been no hotter topic this year than that of Brisbane’s property market – particularly, what on earth is going on with all of these apartments?! The media is of course all over it, everyone's talking about it, so to see out 2017, we’re putting in our “no BS” two cents...
Cancer Is S#@%!
This ride involves travelling about 660km in 5 days. 45 riders, with a goal to raise at least $350,000 for cancer research.
Why Review Your Business Finance Package?
What usually triggers a CFO/CEO or business owner to conduct a financial review of their funding package? Some of the most common reasons are probably pretty obvious: Stumbling over hurdles when asking their existing bankers for more money, such as when undertaking an M&A (Merger & Acquisition), buying a property or needing funds to support […]
Capital Stack in Singapore
Earlier this month, Mark did the rounds in Singapore, seeing key players in Private Equity firms, Fund Managers, Family Offices, Private Banks, as well as some fintech players. With so much talk about capital in Asia, the question is – what’s the deal? The interest in Asia, particularly Singapore and Hong Kong, is well founded. […]
What does STAC Capital do?
Let’s cut to the chase – first call of business – a little be bit about STAC Capital…