Hunter Fleming

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

The thing that sets property development finance apart from other more traditional forms of finance is the fact that until the property has actually been designed and constructed, it may have very little value. The land the property is to be built upon will have some residual value, but will not cover the cost of repaying the full loan amount if it remains an empty piece of land.

For this reason, commercial finance lenders are extremely cautious when considering loan applications to finance new developments because the risks involved can far outweigh the potential gains and there is no guarantee that they will get their money back. Due to this increased risk, lender will usually apply a higher rate of interest to property development finance than they would for a typical residential mortgage.

A property developer can usually get 100% development finance both for large scale property development and renovations. For 100% development finance in