Site Acquisition at 65% LVR

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...
Bank funding $8.8m for 32 Townhouses with less than 25% Debt Cover

Bank funding $8.8m for 32 Townhouses with less than 25% Debt Cover

Being an expert ONLY in Development Finance can be like having the blinkers on, particularly if the Developer’s wider Group includes other income sources. In this case, with the developer wishing to only have minimal pre-sales prior to commencing, the...
I have a Strong Relationship with my Bank

I have a Strong Relationship with my Bank

If we had a dollar for everytime we’ve heard this, particularly over the last 12 months… “I’ve been with my Bank for [insert big number here] years, I have a really strong relationship with them, my banker has always looked after me.”...
In-Fill Subdivision Finance with No Pre-Sales

In-Fill Subdivision Finance with No Pre-Sales

Small-lot in-fill subdivisions can be great little projects – getting in & out quickly with good profit margins can result in solid returns on an annualised basis (IRR, for the finance geeks!). For small projects and relatively inexperienced...
Townhouse Development Finance with No Pre-Sales

Townhouse Development Finance with No Pre-Sales

With projects requiring less than $10m in debt, when we present our clients with the pros & cons of Bank vs Non-Bank development finance options, it is increasingly rare for developers to choose the cheaper bank option. Why? With this project, the developer...