There are two main methods a lender will look at when it comes to financing your development. The two options are:
65 per cent on land and building contract value
60 per cent of the completed valuation
All lenders are different, but they will generally take the lower of the two options. Major Banks will want to see a 25% net profit margin on the completion of the project (20 per cent – 25 per cent for experienced developers).
They will also want to have a number of off the plan sales to cover the funding to give them comfort. Speak to an acclaimed team member from Inovayt today for an in-depth walk through.