I think that the bridge of financial security taking the UK forward into a brighter future that Gordon rambled on about in his days at number 11 has just become a bridge too far for us to see any signs of a pin prick of light let alone a ray of sunshine.
Our pinkie press today talks about commercial property as being something that you may want to look at as a long term sound investment from which to run your business. Investors are being advised to look closely at the covenant provided by tenants as those in the A1 class are still providing good returns but tenants who are not high street names must be viewed very carefully.
The pity is that the appetite for commercial property is still strong with business owners looking to buy their own premises or move up market and investors still view commercial property as a good long term investment even in the absence of a high street mame as a tenant.
The stumbling block remains the lack of funds being made available to businesses who almost have to get out the begging bowl to have any chance of success. This maybe a little over the top but Commercial Mortgage Brokers have to make as many friends as possible in the banking world and then the raft of information that we have to put together to make a presentation to the lenders is way beyond what we have known in the past.
Some clients have found that they are on a very steep learning curve when their Commercial Mortgage Broker asks them to provide a mass of information which may even include your inside leg measurement, but if thats what the lender requires in order that we can get the green light then so be it.
A good Commercial Mortgage Broker can be worth their weight in gold in the current market where they have their finger on the pulse and know what the lender is looking for, and what to avoid. There are certain sectors of the market, particulary leisure, where the market has no enthusiam or appetite to lend. This will of course change when the general public feel confident about employment and interest rates and start spending again.
The housing market and the Commercial Mortgage markets are built on the very fragile foundations of confidence, take that away and people will not spend their hard earned money. Go back to any of our previous depressions or even the wartime years and you will find that people started saving their money for a rainy day.
History and our grandmothers tell us a great deal of wisdom its a shame that none of our bankers had a grandmother or had any commonsense otherwise we would not be in the mess that we are.
The banks have to start lending again if we are to get out of our current situation, businesses cannot survive and flourish without the life blood of industry, CASH FLOW, and access to COMMERCIAL MORTGAGES, FINANCE, AND BUSINESS LOANS, so stop talking about it Grey Gordon, take the proverbial financial bull by the horns and make things happen. You can be a sheep or a good shepherd, sheep we have in abundance, shepherds lead from the front as you should if you would like to be considered a leader of men.
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