Are you looking for a loan to finance your development? Finding the right loan can be a tough decision. When it comes to property development or any construction projects, the return on your investments (ROI) is important. How you finance your development can have a significant impact on your ROI.
What loan type is most suitable to you may depend on:
- The size of your project
- Your credit history
- Your maximum loan size
- The gearing on loan to value ratio
- Postcode location
- Any pre sales
- Availability of supporting documentation (e.g. development applications (DA) and plans.
There are various types of development funding options available on the market. A popular method of funding larger projects is to use gross realisable value (GRV). This is based on the value of the completed sales, after taking into consideration the cost to complete the development. This approach may be suitable where there are limited or no pre-sales.
Some development funding relies solely on pre-sales in order to obtain construction finance. The issue with this method is that it may lead to discounting on the completed product in order to sell off the plan. Whereas, with GRV you would be able to maximise the end sale price of your product.
If you require any further information in relation to development finance, contact The Quinn Group on (02) 9223 9166 or submit an online enquiry form today.