Property Finance Insights

Property development finance is rarely a question of finding one lender with the lowest headline rate. The lender category can affect leverage, equity requirements, presales, loan conditions, construction drawdowns, facility terms and the exit strategy. For a developer working to a settlement deadline or construction program, those differences can have a direct effect on whether … Continued

A development can be commercially sound and still lose time at the finance stage. The issue is often a gap between the project programme, lender assessment, valuation, legal work and the documents required before funding can move. For developers with land, planning approval or a project close to site start, development funding before construction starts … Continued

For a property developer, construction funding works very differently from a standard property loan. The lender does not usually provide the full construction facility at the start of the project. Funds are commonly released in stages as work is completed and agreed conditions are met. Valuations, quantity surveyor reports, presales, project costs, borrower equity and … Continued

Property development funding is assessed against far more than the value of a site. Lenders review the property, approval status, feasibility, construction costs, borrower position, builder, presales, equity contribution and proposed repayment pathway. Two projects with a similar loan amount can receive very different responses when these factors differ. For developers researching what lenders assess … Continued

Here at Blue Crane, we believe that we’ll begin to see a reset over the coming 12-18 months of the fuelled run-up of asset values we’ve experienced over the last couple of years. New entry points will be established at yields that reflect risk premiums adjusted to the new-normalised rate environment. The apparent slowdown of … Continued

Interest rates and its impact on households and the property market continue to be the popular topic of conversation around water coolers, in bars and at Sunday BBQs all around Australia. You may not be aware, but Blue Crane runs the entire credit market, from construction loans to mortgages. We see different credit policies and … Continued

The RBA’s first meeting of the year will be on Tuesday 7th February. Inflation unfortunately crept back up due to Christmas retail, cost of domestic travel and energy prices spiking, so many industry experts are predicting another cash rate rise for February. Blue Crane is expecting a 0.25% p.a. cash rate rise, with another increase … Continued