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Property Development Finance
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What is Property Development Finance?
Property development finance is a type of business finance where you gain funding for a residential, commercial, or mix-use property development. It is a broad category that includes mortgages, bridging loans, term loans, and personal loans. Clients who need large-scale funding for a multi-residential project (e.g., apartment/unit complex), office space development, or any other expansion need property development finance.
Intellichoice helps clients who want to invest in property development. We understand that business operators who aim for ambitious projects need robust loans that will bring massive potential across industries. With our certified financial specialists, you can rest easy concentrating on the finer points of your commercial project, instead of being bogged down by loan concerns.
Considering property development finance?
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Property Development Finance Trends
Now is the time to be developing! The lull during the pandemic is over; the country is experiencing a more revitalized housing market. There is a projected increase in many areas of the industry, meaning construction will surge over the coming years. Clients who plan to be major players in property development can start building residential properties like apartment complexes and townhouses. Commercial spaces that support office-based and hybrid work styles are also in demand.
Clients who want to invest in a multi-residential property or a commercial space development can count on us. Intellichoice can make your loan application process much more likely to be convenient and approved in as little downtime as possible. We are certified brokers and are partnered with reputable lenders in Australia. We help you explore possibilities in your commercial investment and leverage today’s strengthening property development.
Want to enquire about property development finance?
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Where to Use Your Property Development Funds
Banks and private lenders provide two options for property development finance:
Total development costs (TDC). This comprises the total cost of your project. Fees on the property purchase price, construction costs, finance interest costs, property holding costs, and marketing or sales costs (e.g., advertising) are included. Depending on the lender, you can obtain a higher percentage of TDC – up to 90%. The higher the percentage, the less equity (deposit) you’re required, and the earlier you can roll out the development project.
Gross Realized Value (GRV). GRV refers to a property’s projected value once completed, excluding GST. Like with TDC, there will be non-bank lenders who are prepared to give a higher percentage of the GRV, granted that the proposed development is in a high-market location and is forecasted to be a high-demand property.
Let’s look at an actual example of property development finance:
- land is worth $2.2 million (M)
- land had a debt of $1M
- headworks and professional fees $1M
- build cost $1.2 M
- sale on completion $ 5.2M
- net was $ 1M and the original 1M already held as equity.
So, in this case, $1M was made for 2+ years work utilizing original equity, so it shows what can be achieved from essentials developments when the funding is managed correctly.
Businesses across industries revitalize projects with much-needed cash flow, but it is challenging to gain approval given the more stringent procedures in banks. We are here to offer expert solutions. Intellichoice specializes in helping large-scale business owners get financing that can leverage their decisions. Our proprietary knowledge and expertise assess the best loan products to expand your property development.
Curious about property development finance?
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WE ARE TRUSTWORTHY
Why Partner with Intellichoice?
It’s a great time to invest in multi-housing construction and commercial renovation projects, given that the market lull is over. We have been sourcing property development financing for over 20 years for clients like you. With us, you gain vital advantages:
- Best rates. You will only spend weeks researching bank and private lender options. We curate what type of agreement suits your property project.
- Get the best outcomes. Our finance specialists can design a robust application for you and source up to 75% loan-to-value ratio (LVR).
- Minimize rejection. We always set clients on a positive footing. We ensure approval by organizing documentation, from planning permission, and value estimation, to government permits.
Let us streamline your property financing