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On the 8th of Oct 2014, we published an article titled “Are Property Developer’s Prepared” foreshadowing the macro prudential credit squeeze that’s now occuring in the Australian Property and Construction Finance Market and the likely resulting consequence’s. The overheated Sydney and Melbourne property markets has been blamed as the primary causal factor. However, the trigger point was the volatility created by the recent Chinese Stock Market Crash, Greece’s game of russian roulette with the its creditors and the Eurozone, and […]
As Banks continue to place speed bumps and roadblocks to Developers seeking speed, consistency and flexibility in the approval process, Developers continually seek alternatives. Development Finance Partners (DFP) regularly receives calls from clients who’ve been disillusioned by an experience with a Bank, particularly where the front line sales team are offering one thing, only to have the credit hierarchy come back with another. DFP has established relationships with senior decision makers in financial institutions and understand what their requirements are. […]
By Development Finance Partners / Matthew Royal Funding Trends – Historical Background The diversification of funding sources in the private sector to support property development is continuing. Looking at today’s trends, it is worthwhile to review the changes that have occurred in the last 30 years, to provide an understanding of the fundamental shifts during this period. Such will help explain the dynamics of the current market place. Prior to the 1989/90 Property Crash, the Banking sector through their respective […]
Before you commence any development project or investment, it is obviously important to initially determine how much you can borrow and how you will be able to manage all associated costs of the development. The Australian economy has seen many of the major players really tighten their lending criteria. Most banks are only interested to lend to experienced developers. Development finance is so much different to any traditional investment finance. At usual terms, you can borrow the ongoing interest as […]
Most often, the mortgage economy prefers a lending system that can change as financing ideas evolve. We the consumers want some flexibility in the lending process because not every borrower is a letter-perfect loan applicant. Similarly, not too many lenders, or even mortgage investors, would want to play around with loans outside its safe harbour, because borrowers now have more rights than in the past and the legal protection for lenders that has long been assumed with high-risk mortgages is […]
What are the non-bank alternatives? Whether you’re a highly experienced Property Developer or not, getting the financing of your Property Development right from the outset is a vitally important element of any Property Development Strategy. In today’s post GFC environment failing to incorporate a well structured financing strategy from the very beginning into the total development strategy is a recipe for disaster. Investing in real estate is one of the most important financial decisions anyone can make and for the […]
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