Article by Matt Traverso
Property Development Finance includes the construction of new buildings, refurbishing existing buildings, as well as land subdivisions and is considered to be the most complex area in property finance.
If you are planning a property development project then you are best advised to seek the services of an experienced commercial finance broker as opposed to a standard residential mortgage broker. A good commercial finance broker will have experience in structuring construction loans and can facilitate property development finance for land subdivisions, residential, commercial, office, industrial, retail and hospitality orientated property developments throughout Australia. They will be able to give you advice, information and guide you through the entire application process. Perhaps more importantly they will have a far greater knowledge, range of appropriate lenders and industry contacts than an individual developer would have. Using their knowledge and contacts they will be able to analyse your specific requirement and in turn structure a suitable funding package which would be the best fit for your project.
Property Development Finance can be structured in many ways, tailored to the specific needs of the project. Typical development funding structures fall into two main categories; Total Development