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1.
Standard Draw Down
Funds
for the construction of either residential or commercial/industrial
properties are available to approved applicants subject to sighting the usual planning
permits, stamped building plans and (fixed price) building contracts if
applicable. Advances are to a maximum of 2/3rds of estimated end value (gross realisation) ex GST with draw downs
(progress payments) available in the usual way. All advances in excess of $1,000,000 require a QS report and that the lender will withhold the cost to complete (Retention Sum) from the advance at all times – usually with off-set interest credited – on the following basis, viz;
estimated end value (ex GST) x 66.6% less any prior advance less estimated cost to complete
but never more than 66.6% of the progressive (then current) value of the security
Various options exist for full
discharge of the loan following the construction period and some funders allow roll-over into a mortgage facility (with a rate reduction) after the issuance of a certificate of occupancy which therefore negates the necessity of refinancing and/or forced sales of the security.
See
Rate page for current interest
rates and loan criteria and/or email the Loan
Inquiry Form for a full written indicative offer/quotation
which includes: confirmation of amount, rate and term, applicable
fees, application forms and a procedure page outlining steps
to settlement.
2.
Joint Venture - this funding is presently suspended due to the current economic crisis
As
an alternative to the standard x% of end value progress payments
style of construction funding Fuss Free Finance offers (subject to availability) joint
venture funding to 100% of hard and soft costs. Based on the
Macquarie Bank model (the bank takes up to 50% of the estimated
profit and requires "financials") our J/V partner
only takes up to one third of the estimated profit (gross
realization less total debt) and whilst wanting to be satisfied
that the developer and builder have the experience to complete
the project, taxation returns are not required. Be reimbursed
for out of pocket expenses (land cost etc.) and pay no interest
payments during the period!
See
Rate page for current interest
rates and loan criteria and/or email the Loan
Inquiry Form for a full written indicative offer/quotation
which includes: confirmation of amount, rate and term, applicable
fees, application forms and a procedure page outlining steps
to settlement.
3.
Development Land
Prior
to beginning construction and approaching a construction lender
which requires stamped plans, permits, fixed price building
contract and sometimes pre-sales the land must be obtained
– this funding is usually not available via construction
lenders.
Fuss Free Finance has access to lenders who will advance funds
against vacant development land (usually to a maximum of 2/3rds
of valuation) in order to secure the land but prior to the
commencement of construction thus enabling time for relevant
documentation to be obtained. These funds are
interest only and have a fixed rates for a one
(1) year term with the right of early repayment so developers
can discharge the facility once the stamped plans, permits,
fixed price building contract and sometimes pre-sales are
obtained and approach a construction lender
See Rate page for current interest
rates on land financing and loan criteria and/or email the Loan
Inquiry Form for a full written indicative offer/quotation
which includes: confirmation of amount, rate and term, applicable
fees, application forms and a procedure page outlining steps
to settlement.
* Please note that at the current time due to the Global Financial Crisis 'fallout' the above loan to value ratios and the ability to fund development and construction projects is extremely limited. Accordingly we would advise that you contact us on 1300 131 876 in order to asses your particular proposal.
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