How much funding do you require?
Are you looking to invest in residential property development?
Developments finance could fall under the normal residential loan process if it is less than 4 dwellings. Anything more than 4 dwellings will fall under the commercial developments category.
2 - 4 dwellings - land subdivision or construction
Up to 95% LVR borrowing for building 2 houses
Up to 80% LVR borrowing for up to 4 houses
Medium size developments (anything over 5 dwellings)
Bank will lend up to 65% GRV(gross relisation value exclude GST) or 70% of costs whichever is lower
Non-Bank will lend up to 70% GRV (gross relisation value exclude GST) ot 85% of costs whichever is lower
You must meet 15% profit margin
Maximum loan term - 3 yrs
Developer requires to have some experience in property development or hires an experienced project manager
Interest rates are based on risk ratings
At Smarter Choice Finance Brokers, we have various banks and non-bank lenders that are specialised in development finance. Please contact one of our commercial broker for a funding table.