There are two main reasons why developers develop properties:

DEVELOP TO RETAIN
Many property investors buy blocks that are large enough to develop into multiple dwellings. The old property is demolished and normally replaced by two to four units. These units become part of the ‘buy-and-hold’ portfolio that the developer will retain long term.

Investors Direct can provide finance for the construction stage and the takeout finance on completion. Many of our clients are using this as a way of creating equity to reduce capital input and maximize the return on their investment.

Some lenders are uncomfortable with developers retaining the completed properties, as the lenders believe that developers are not familiar with the concept of holding for the long term. However many developers now realize that the money is in the holding and more and more are seeking finance to retain their finished properties.

Investors Direct understand what different lenders want and we can help you obtain the right finance for your purpose.

DEVELOP TO SELL
This is the more traditional way of developing properties in Australia. Many developers go for tradi- tional development finance where the profitability of the project is a critical part of the assessment. We can look at what works for you to help introduce the right finance to your project.

There is a multitude of financing issues that you need to consider as a developer including; initial site purchase, construction, takeout finance and you may have complicated structures involving multiple parties in the development. All of these issues should be investigated at the earliest possible stage.