Development finance Perth

It depends on the lender, the project size and your track record. Facilities are sized against total cost and end value rather than by a single rule. Bank funding generally requires more equity than private funding. We work out the realistic requirement for your specific project before approaching anyone.

Banks usually want presale cover, though the level varies by lender and project. Non-bank and private lenders will often fund without presales at a higher cost. For smaller projects, the cost of moving faster is sometimes less than the cost of waiting for contracts.

A construction loan funds one dwelling and is assessed largely on your income. Development finance funds multiple dwellings built for sale and is assessed on the project feasibility, cost, end value and exit. Interest is usually capitalised into the facility rather than paid monthly.

The lender engages a quantity surveyor to review your construction costs before approval and to certify progress claims during the build. They confirm the work claimed has actually been done and that the remaining budget still covers the remaining work. Their reports control the drawdowns.

Yes, though the terms reflect the lack of track record and lenders look harder at the builder and the site. A modest, conservative first project presented honestly funds far more easily than an ambitious one. Pairing with an experienced builder strengthens the application considerably.

You fund the overrun, usually from your contingency or your own equity, because the facility is sized at approval. Some lenders will consider an increase, though it involves a fresh assessment and takes time. This is why a genuine contingency belongs in every feasibility.

Yes, and it needs planning from the start. Retaining stock means refinancing that dwelling to a hold facility at the end, which requires serviceability rather than sale proceeds. Tell us at the outset so the facility and the exit are structured for it.

Small to mid residential and mixed-use, typically from a two lot subdivision through to a mid-sized apartment build in the Perth metro area. If a project sits outside what our panel will fund, we will say so early rather than shopping it around without result.

Off four numbers. Total development cost covers land, construction, professional fees, interest and contingency, and understating it is the most common feasibility error. Gross realisation value is what the finished stock should sell for net of selling costs, and an independent valuer checks it. Loan to cost sets how much equity you put in, and loan to value measures the debt against the end value.

Site details with zoning, the R-code and the yield; land cost including duty; construction cost from a fixed price contract or a quantity surveyor; professional fees for architect, engineer, surveyor, planning and legal; council contributions and headworks; finance costs including capitalised interest; selling and marketing costs; a contingency you would be comfortable defending; end values supported by comparable sales; and a programme from settlement to final sale.

It sits awkwardly between a construction loan and a full development facility, and some lenders will treat a two dwelling build as residential construction, which is cheaper and simpler if you qualify. What decides it is zoning and the R-code, whether the titles will be green title, survey strata or built strata, the subdivision approval conditions, and the service connections, drainage and retaining required.

Which lenders require presale cover and which will consider a project without it, whether related-party sales count towards the requirement, how deposits are held and whether they count as equity, the sunset clauses and how long your contracts stay binding, and the cost of a non-presale facility against the cost of waiting for contracts.