Does anyone know any concrete information on the line of loan called a devlopment loan where the bank lends 70% of the finished value of an intended development? If so how can i get more information on these loans?
GR lending is standard practise in the development market.
Those lenders that offer this will base the lending on a variety of factors including Directors Assets & Liabilities, income both from within and outside of the project, pre-sales dependant on the number of units in the development and total viability of the project.
70% GR should be readily available.
Richard Taylor | Australia's leading private lender
Ok thanks. I assume GR is gearing ratios?
GR = Gross Realisation
Richard Taylor | Australia's leading private lender
hi barney
If its any help.
For all my developments (through my Trust) I have been using EVL (End Value Loans) at 80% with nab, which is readily available if you (and the development) qualify.
HThere are such options where you can get a secured loan over a ongoing construction. Just find out with your local agent. He may tell you more in detail. Property Investment has lot of complication and its better to be safe
hutch, do you have to then pay GST on the sales if it is all through your trust?
barney
Yes I pay GST during the development (builders etc..) and collect GST on the sales at the other end (through the trust).cheers
hutch
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