IT IS NO SURPRISE that banks are still rather coy about funding Developments, so maybe a few ideas on how to get your projects across the line could be helpful.
Here are the Top 5 Tips …
- Properly Assess Your Capital Requirements
Do a thorough feasibility before proceeding with any project, to ensure you have sufficient funds to complete the project based on 80% funding of total costs. Make sure you factor into your calculations capitalised interest, for least 12 months.
- Lock In Enough Pre-Sales
Make sure you are aware of the number of pre-sales you will require. And also properly research the market — so you are confident the properties in your development will sell off-the-plan. If your development is not suited to pre-sales, ensure that you are able to arrange finance without pre-sales (or with a lower pre-sale requirement through a non-bank) before proceeding. [Read more...]