Any project whether it is a
small residential dwelling or multi-million dollar plan, needs funding. The
term property development finance is generally used by the lenders and the
brokers to define the finance products employed for the project funding. A
simple way to learn about the procedure on your own is to log on to some
specialist website. Such sites will provide the needful information on how to
get the best deal. Moreover, one can also save his precious time and money by
contacting a broker. He will apprise you about the borrowing.
I was facing similar situation
when I was seeking for property development finance in Melbourne.The
commercial or residential loans can be taken depending on the project and
individual’s circumstances. A development finance specialist will assist
you in determining the loans and the evaluation of the property in which you
are interested. If you have done your homework well with the broker or the specialist
and the proposal has been set out and been validated, lenders will take no time
to provide you needful funding for the project.
Next it comes to lending you
amount. The loan amount will certainly be influenced by the gross property
development values which are estimated. One can expect around 70-75 percent of
the actual price of purchase and costs of building. Some of the lenders might
give you 100 percent funding but for that, you have to meet their strict
criteria like location or nature of the project and the brilliant track record of
the developer in the field. Property development finance in Melbourne
could be a mixture of debt and equity finance which means that the investor
will get share in the ownership and the dividends depending on the profit.
But to avoid all these complex
terms,a dealer is likely to have better knowledge of the different options
involved in the process. They are also skilled in current marketplace and will
ensure you that the deal is attractively presented to the prospective lenders. Even
if the property developer does not have good track record of accomplishment,
the dealer could skillfully negotiate for a quick deal. Other significant factors
on which you have to work on is to choose between fixed and variable interest
rates and also make sure that the extra costs is excludedfrom the costs of
borrowing.
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