If the bank says NO, DFS can get you a YES!
Many business owners find property development attractive due to the potential for capital growth and income yield. The nature of property development is complicated and complex, but funding doesn’t need to be. Raising capital to fund residential and commercial developments comes in many forms, including a property developer using their own capital.
Our below guide steps you through what you need to know about raising funds for property development in Australia.
Property development finance refers to the financial support utilised by property developers initiating development projects.
Property development financing may be used to acquire land or finance construction projects, such as loft conversions. However, the availability of finance for commercial properties and mixed-use developments may vary depending on the type of funding sought.
The eligibility criteria for development finance can vary widely since different lenders focus on different aspects, including personal circumstances, credit scores, and business plans. It is crucial to assess your eligibility and determine which source of property development finance is most suitable for your needs.
There is a vast array of property development financing options available in Australia. It’s common for property developers at every experience level to access funding to help finance their development plans, from first-time developers to experienced developers.
Here are some of the options for raising finance for property development:
Before obtaining a loan for financing, it is important to consider several factors:
Evaluate how long the project will take to complete, as it impacts the loan duration and associated costs.
Determine the amount required to complete the project, including construction, materials, and other associated expenses such as marketing, agents fees etc.
Assess the market demand for the completed project to ensure a market for it, which may affect the potential for selling or renting the property and generating returns.
Consider the potential profit that can be achieved from the property development project, considering the costs involved and the expected market value.
Determine if pre-sales of the property are necessary for obtaining financing, as this may impact your ability to secure the loan.
Did you know: At DFS, our range of property development finance options come with minimal (to no) pre-sale requirements!
Raising money for your real estate development project is easy when you speak to the team at Diverse Funding Solutions. We provide insight and financial expertise regarding your options for raising capital for property development. We have a proven track record of delivering fast turnaround times on all of our private funding options, meaning that you can apply with confidence that your application will be processed efficiently and effectively.
To begin the journey towards your property development project, talk to the DFS team about specialised property loans and how we can help you!
Amongst your property financing options, you may come across construction loans. A construction loan is designed to fund the construction of a building, whereas property development finance includes funding to cover the total costs of the development.
At DFS, most of our lending solutions don’t require a credit check as part of the application process. This means that in most instances, your personal credit score nor your business score will affect your loan application.
Yes, you can use your funds to help raise capital for property projects. Discuss what’s comfortable with the lending team at DFS. We can help you avoid personal loans or high-interest loans.
