WHAT IS PROPERTY DEVELOPMENT
Property development can involve various processes, including looking and buying a land, building and construction, and selling at a higher profit margin.
If you are going to develop, you will need someone who understands how property development financing works and the guys here at Financely have been experts in this field for years. We have helped so many property developers with borrowing capacity and have maximised their LVR on these Property Development Loans. Knowing how the Banks think and work is what makes us unique. So, to find out more, please contact us.
WIth Financely, we offer you more than 20 years of experience in financing various property development projects. However, it is critical to understand the two specific types of property project you may opt for:
DEVELOPMENT – Clients with experience in similar projects and a clear exit strategy is what Banks are looking for in the transaction. Serviceability not required in all cases where the Bank has comfort by way of presales in clearing the debt within a specific timeframe.
INVESTMENT – Where the development is for investment purposes. Once again, the Bank’s lending criteria apply, but the underlying requirement needs to be the ability to service the end debt.
PROPERTY DEVELOPMENT
Clients with experience in similar projects and a clear exit strategy is what Banks are looking for in this type of transaction. Serviceability not required in all cases where Bank has comfort by way of presales in clearing the debt within a certain timeframe.
PROPERTY INVESTMENT
Where the development is for investment purposes. Once again the Bank’s lendding criteria applies, but underlying requirement needs to be the ability to service the end debt.
RESIDUAL STOCK FUNDING
Ability to leverage off residual stock from a recent development to raise funds towards the next project, or support cashflow necessary to carry out planning for the next project. Serviceability needs to be evident.
LAND SUBDIVISION & LAND BANKING
Similar to a property development, needs to meet the Banks criteria for funding. Servicing, Pre sales, etc. are all relevant.