|
Finance BrokingBusiness Finance & Equity RaisingSourcing business finance is a complicated field and it is important to utilise a finance broker who has commercial lending experience and a proven history in arranging finance. The presentation and preparation of the proposal is critical and utilising the right person can assist greatly in achieving the right result. Strategic Planning Group Ltd is able to source and negotiate:
We work hard to reduce covenants required by lenders, we look to limit guarantees as much as possible and minimise or negate property security arrangements. We also add value in reviewing the ownership and trading structures you have and how taxation impacts upon you, your business, any trust or other entities you have in consultation with your accountant. Where suitable businesses require a component of equity funding we have access to a range of investors with money available for this purpose. When Strategic Planning Group Ltd arranges finance or equity raising for business we only charge on success. If we don't perform we don't get paid. Property Development & Commercial Property FinanceFrom our knowledge of the property finance marketplace, and a clear understanding of the advantages of varied approaches to funding property transactions, we can offer the right property financing solution at the appropriate stage. We are independent of all lending institutions and can arrange or advise on a wide range of financing methods and vehicles - including senior debt, mezzanine or equity based structures - for both development and investment projects. Our expertise is vital in advising our clients on adopting the most efficient loan structure, the most commercial and advantageous terms available, the most appropriate investment vehicle and the principles of taxation treatment (in conjunction with your taxation adviser). We are normally able to source property funding for commercial buildings on more advantageous terms than the borrower. Strategic Planning Group Limited generally tenders the larger finance facilities to approx three banks to ensure the most competitive offer is sourced. This competitive process can provide exceptional results for the borrower. Many of the property developments are funded to 100% of cost. This is possible when there is a reasonable development margin (20%), costs have been finalised, consents obtained and a reasonable level of presales obtained. Each project has different strengths and weaknesses so it is not possible to be specific on the level of funding available without receiving detailed information on the project. It is possible to raise money on investment projects up to 80% of cost, reducing equity requirements and improving returns for the investment. Debt finance is not always the answer to sourcing capital to undertake development or purchase investments. From our involvement with key lenders and property investors, we can introduce equity participants and structure the basis of involvement with them in creating the optimal funding mix for development opportunities or investment purchases. When Strategic Planning Group Ltd arranges finance or equity raising for property development or investment projects we only charge on success. If we don't perform we don't get paid. Home LoansWhere should I get my home loan?People, when shopping around for a home loan want choice and professional advice on the most suitable product. They can use one of two distribution channels - they can go directly to their bank (or have the bank come to them) and get information and advice about the home loans on offer from that one bank. In addition, they can also go to a mortgage broker, hopefully a member of the New Zealand Mortgage Brokers Association (NZMBA), and get information about a large range of home loans available in the market and advice about the ones most suitable for their needs. The advantages of using a mortgage broker are that you get: Advice - The broker is a filter to the main banks and other lenders. Mortgage brokers advise consumers on the suitability or appropriateness of a home loan and the structure of borrowings for the consumer's personal circumstances. No fees are paid - For home loans the mortgage broker is remunerated by the lender, the consumer does not pay the broker directly. The nature of the remuneration and commissions must be disclosed up front (by NZMBA brokers) to consumers before they enter a relationship with the broker. For arranging/broking finance commonly Strategic Planning Group Ltd receives a commission from the lender providing the loan. Notwithstanding this, if satisfactory loan terms are sourced, settlement occurs, and commission is not paid by the lender the broker reserves the right to charge the client a fee to recover time spent (based on the brokers current applicable rate; currently $100+gst per hour) and disbursements by the broker. In instances where the lender does not provide commission a suitable fee will be pre-agreed with the client before broking the finance. Choice - NZMBA registered mortgage brokers must represent at least 6 lenders and most represent considerably more than that number - 15 or 16 lenders. Expertise - the mortgage broker knows the terms and conditions of all the home loan products they deal with so they can advise on which may be the most suitable and how best to structure the transaction. Convenience - the mortgage broker processes the application and transaction. They take the hassle and stress out of the home buying process. Brokers have close working relationships with all the lenders and the consumer gets the benefits of this regular and personal contact. Ease - If consumers don't have the time or inclination to visit every lender or bank and sift through the often complex lending material, then the professional services of a mortgage broker will be the most efficient way to go. Price - A mortgage broker may be able to match or even better the rate subject to loan size and other borrowing criteria and often without an application fee being payable. Long term relationship - the broker will follow up the initial home loan application with regular client contact and service. Residential Property Investment FinanceIt is widely acknowledged that New Zealand has some of the most "investor friendly" property tax laws in the world. Provided you follow the advice of the likes of a Chartered Accountant that is familiar with New Zealand tax laws you may be able to take advantage of the following benefits:
There are some key components to ensuring you maximise the benefits of investing in property. Ownership StructureWhy would you establish a company or trust other than own the property in your personal name? We consider there are two main reasons:
To help you decide what's right for your situation talk to Strategic Planning Group Ltd and your accountant. Maximising Your Depreciation ClaimDepreciation is basically claiming for a loss in value through wear and tear. You can claim this on the house, any improvements you make to it and the chattels. But you need to be careful because if the real value goes up instead of down you could end up with a big tax bill (depreciation claw-back) when you sell or stop renting the property. Chattels tend to go down in value over the years, but buildings tend to go up in value. If you claim depreciation and then sell for more than the depreciated or 'book value' you'll pay tax on the gain. The key point here is that a higher rate may be applied in depreciating chattels in comparison to the building, so the objective is to maximise the value of chattels at the time of purchase in line with Inland Revenue requirements in order to maximise depreciation. This may provide significant cashflow benefits over the period of ownership. Depreciation is something you'll want to talk over carefully with Strategic Planning Group Ltd and your tax advisor. Appropriate Debt StructuringOur experience is whilst many investors take the time to consult advisers on ownership structures, they sometimes miss a key ingredient - how the debt itself is structured and whether it is clearly identified for taxation purposes as being tax deductible. Strategic Planning Group Ltd is able to provide specialist knowledge in ensuring your debt is appropriately structured while also talking to your accountant to tie it in correctly. Negative Gearing (or leveraging)Negative gearing is when the expenses for the property are more than the income it makes. You can claim the loss against other income you have - but basically you are still making a loss. It works in times of high inflation, when rising property values quickly cover the losses, but it's more risky when property prices are stable. Problems can arise if your other income goes down and you can no longer afford the loss - and if you can't sell at a profit to cover what you've lost you've really gone backwards. But if you're making a profit or breaking even, you can ride things out and wait for things to come right again. IndependenceOur ongoing, established relationships with a wide range of lenders (which includes banks, finance companies, and private lenders) mean that we are kept current with the different funding options that are available. This knowledge, together with our lender relationships, is a distinct advantage of dealing with Strategic Planning Group Ltd. As an independent finance broker we are able to present the proposal tailored for your funding requirements to the most suitable lender. Further InformationFor further advice on services offered by Strategic Planning Group Limited to help you create wealth or protect your wealth, please contact me: telephone: +64 9 815 1247 |