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How To Weather The Property Development Finance Squeeze

How To Weather The Property Development Finance Squeeze

Property Development Finance Squeeze We Can Help

Property development finance squeeze is causing the smart property developer and the smart money to look more carefully. Aiming part of your development at the right niche brings all sorts of people onside from government to banks.

property development finance squeeze

The squeeze is starting to show

 

 

 

 

Small and medium property developers are starting to experiencing some issues with their banks. Lending to the sector is being reduced as the above graph shows.

MaxiLife’s MAcH 10 long term lease product is helping many developers overcome the need for pre-sales.

Property Development Finance Squeeze As Lenders Fly To Quality

Commercial lending in a ‘credit crisis’ – Mortgage Business

Equity-One managing director Dean Koutsoumidis told Mortgage Business that the current “stand out trend” in the commercial lending sector is the “lack of liquidity in institutional banking.”

He added that any loosening in commercial credit from the big banks could be more than 12 months away.  Via mortgagebusiness.com.au

A Property Development Finance Squeeze Is A “Flight To Quality”

pre-sales property development finance squeeze

 

A lot of property developers don’t understand that a pre-sale isn’t always a pre-sale. If you do you are way ahead in getting the funding you need.

 

Australia’s banks are under pressure from the regulator APRA to “clean up” their loan books. The easiest way to do this with property development lending is to demand a greater percentage and quality of pre-sales before advancing funds.

APRA warns on commercial property lending standards

Australia’s powerful banking regulator has fired another warning shot at the commercial property sector, saying it will further investigate lending standards and consider “additional guidance” if necessary.

Wayne Byres, chair of the Australian Prudential Regulation Authority, on Friday flagged “further tightening” from banks in the $1.5 trillion residential mortgage market, a crackdown some experts believe is behind a gentle slowdown in residential real estate in the past month.

“That should not be read to imply we have any less interest in the quality of commercial property lending,” Mr Byres said. Via smh.com.au

 

How Does MaxiLife Solve The Property Development Finance Squeeze?

We have worked with a number of major lenders to provide a quick and simple fix to the problem of pre-sales. The MAcH10 leases are accepted by our lenders as a pre-sale.

Why?

MAcH10 lessees are amongst the major housing providers in Australia. When they agree to lease your finished development the bank knows that your cash-flow is assured. We underwrite your development by leasing any unsold properties. That way your lender knows their loan can be serviced.

Contact us here and we can explain the details in a quick chat.

 

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