Blue chip tenants are seeking rental relief, but boarding house tenants aren’t. Think about that for a moment. Has there been a mis-pricing of property risk for some asset classes, and if so, how will this be adjusted by market forces moving forward? The residential market seems to be taking it in it’s stride having already been through it’s own price adjustment in 2019, but commercial and industrial assets are yet to be seen.Generally, my advice to you at this time is to ensure you have as many lending options as you can. Get leverage when you can get it, and pay down the debt as hard, and as fast as you can while it’s so cheap. We have bank lenders that will provide equity release against your commercial and industrial assets with NO LINE FEE, and a rate in the early 3%’s. Unshackle yourself from the grips of just one lender that takes mortgages over all your assets and registers charges against your trading entities. These strategies are in the lender’s interests, not yours.
The financial disruption caused by the medical emergency has exposed vulnerabilities in some asset classes, whilst dispelling myths about others. Among the best performing asset classes that we’ve seen throughout this time are boarding houses. (Touch wood), not one boarding house loan we have arranged has sought to defer their loan repayments, or complained of issues with tenants not being able to pay their rent.
Boarding houses are also an asset class that Bank’s are still lending against. We have had much success, even throughout the Covid19 era of obtaining favourable finance terms for the development, and refinance of boarding houses.
If you own a boarding house, or a boarding house site, you should be dealing with us. We have a deep level of expertise in not only funding boarding houses, but planning and running them as well. We share information with our clients and provide a holistic approach to maximising returns.
We have been advocating for this asset class for many years and have assisted many clients over the years to incorporate a boarding house asset into their property portfolio. They provide a much needed and affordable housing solution to the community, and generate a great return for investors (provided they are done properly). A great example of responsible investing.
Here’s but a few examples of boarding houses we’ve arranged finance for throughout Sydney: