Property Development Finance in Australia

What is the property Development Finance in Australia?

  • Property development finance refers to a short-term loan type which provides funding for the development of property.
  • Development of property extends to construction projects, land purchase, property renovation and much more.
  • Properties eligible for financing include residential and commercial in the context of respective property.

When is a property development finance appropriate to use?

  • Property development loans in Australia are more suited for large-scale projects and are less suited for smaller-scaled projects.
  • The funding only covers the 70% to 80% of the building/construction cost, the rest of the cost comes under the management of the individual borrowing for property development.

Property development features & benefits

- Maximum loan amount is 80% of LVR
- Only covers hard costs
- Maximum return on investment possibilities
- Land for which requires funding does not count as a collateral
- Stability is promised – no rental fluctuations
- Stays competitive by the rate of interest – monthly cost downslides
- Tax-deductible interest payments – cash flows stays managed

Recent Case Study:

Completed Land Subdivision

Amount: $650,000
Further Drawdown: $200,000
Terms: 6 + 3 months
Rate: 2.7%

Project: Client's construction project encounted certain unexpected obstacles which delayed completion, and requires extra $650,000 as cash flow injection to boost up the business vigour really fast

Role: Maxiron is able to use the unfinished project as security and provided full desired amount, and further approved a higher credit limit based on the completed property. The client performed a further drawdown of $200,000 later.

Can I borrow for property development?

Following criteria must be fulfilled in order to get qualification for borrowing for Property Development—

  • The borrower must not be a minor
  • Registered Mortgage in the context of property “to be developed”
  • The borrower must be an Australian Citizen, an Australian immigrant, or PR Holder
  • Property development must be commercial or residential
  • Proof of construction contract, land purchase contract
  • Provide build cost, preferred LVR, and security (in rare cases)
  • Presence of Australian Business Number (ABN)

How to get property development loans in Australia?

There are three steps to follow up for getting Property Development Loans Australia at quickest with us. Take a glimpse—

Step 1

Fill out our pre-approval form - it takes only 5 minutes!

Step 2

Receive an immediate decision - upload a few documents for verification

Step 3

Receive your funds in as quick as 1 working day

Why Maxiron Capital?

We have revised our application process, to be easy-to-complete in just 5 minutes. Our major focus is to continually work and make our property development finance as convenient as possible for our clients. Our rates of interest rests as low as 1% per month, so that our customers can focus on the principal amount rather than the interest owing. Alongside, we also offer the option for our customers to access their line of credit and redraw facility, making access to additional funding very easy and convenient. Finally, we are welcoming of businesses of all types – no matter the size, all businesses are welcome to obtain funding with us!

Property Equity Releaser - Frequently Asked Questions