Site Acquisition at 65% LVR

Banks are even more increasingly uncomfortable with providing finance terms on    site acquisitions    that developers want or need - on large sites there's next to no appetite, on smaller sites the LVR will often be capped at 50% at best, or pulled back to around the 35% mark particularly if the development is not proceeding in the short term.    STAC's client recently acquired a townhouse site in Brisbane's inner-south, but with equity still tied up in another project, they needed a higher LVR. The outcome of a 65% LVR meant that a few hundred thousand dollars less was required, whilst a rate still in the single digits (with no line fees) meant that the holding cost was still very reasonable.

Banks are even more increasingly uncomfortable with providing finance terms on site acquisitions that developers want or need - on large sites there's next to no appetite, on smaller sites the LVR will often be capped at 50% at best, or pulled back to around the 35% mark particularly if the development is not proceeding in the short term.

STAC's client recently acquired a townhouse site in Brisbane's inner-south, but with equity still tied up in another project, they needed a higher LVR. The outcome of a 65% LVR meant that a few hundred thousand dollars less was required, whilst a rate still in the single digits (with no line fees) meant that the holding cost was still very reasonable.