Jun 13 2018Add to Favorites
Balmain Private is enabling investors to consider stand-alone investments in individual first mortgage loans, via a unique online platform.
Via Balmain Discrete Mortgage Income Trusts, investors are able to build a commercial loan portfolio by investing in individual loans of their own choice.
All loans are backed by Balmain, Australia’s largest non-bank commercial loan manager.
The entire process is conducted online, meaning you select and manage your loan via a private Investor Control Console (ICC) which provides 24/7 transaction and reporting functionality.
Investors can move money from Cash Units to their bank account and vice versa, top-up and redeem Cash Units, invest in Loan Units and track the progress of your investments easily and securely, all via the paperless system.
The first step for those wanting to invest with Balmain Private is to complete the online application form.
Once complete, investors will invest a minimum of $50,000 in Cash Units, in turn held in a CMA with an AA rated Australian bank, currently the National Australia Bank (NAB).
Following this, investors will have the ability to have a detailed look at the underlying individual first mortgage investment Sub Trusts (Loan Units), allowing them to select one, or more, that best meets their return, term and risk requirements.
Once a selection has been made, investors simply click a button enter how much
they wish to invest and the ICC moves money from your Cash Units to the Loan Units you selected - no paperwork is required.
With the emergence of the growing “fintech” space, Balmain Private allows investors to build and control their own income-producing first mortgage loan portfolio – accessible from anywhere and all online.
The current investment landscape in Australia is driven by a range of factors, not least the 2019 federal election, and the view is that the result of the Wentworth by-election, a seat that has historically been monopolised by the Liberal Party, will be the foreshadowing of the federal outcome. The Australian equities market is experiencing volatility, with a 200 point drop last week in the S&P ASX index, the largest drop this year and potentially the result of sentiment surrounding geopolitical headwinds with the latest developments relating to the trade war between the USA and China. Global bond rates remain low, and despite incremental increases, interest rates are too low to be attractive from an investment perspective.
In an ongoing low-interest rate environment on savings and with banks withdrawing from property and construction financing, investment groups like Centennial Property Group are seeing value in providing first mortgage funding for property development, recently settling a $48m loan for a mixed-use retail/residential development in Sans Souci, NSW
With the combined influences of a cooling residential property market and heightened bank scrutiny on all aspects of real estate lending, traditional debt sources are, in many cases, closed to developers and commercial real estate investors, particularly where circumstances require a specific funding solution.
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