CASE STUDY

Construction Loans

We were approached to assist a client with purchase of 5 acres property in Kellyville. The property was land with a 4-bed residence on it. The client was seeking to purchase the property for its future development potential as a land subdivision so was seeking to use the highest & best value for the property as an englobe development site.

OUR SOLUTION

Loan was obtained at 65% on the highest and best use valuation through a Private Lender with interest capitalised for the initial 12 months.

During the initial 12 months the clients obtained the approval for residential subdivision and had secured pre-sales.

At the end of the initial 12-month term the client had the Development Approvals in place and the property was revalued with the Development Approval as a residential subdivision.

The Private Lender converted the existing loan into a development loan for the residential lot subdivision advancing 100% of the construction costs for the subdivision plus advanced capitalised interest for the construction period. This solution best suited the clients requirements where the focus was on overall project return on investment.

Speak to an expert >