Development and construction loans

[Underway]

Hello to All

This is my first post so here goes,
Does anyone have opinions/knowledge/experience
on development and construction loans such as http://www.membersequitybank.com.au/bloan/residpropdev_bloan.html.
that they would care to share?
I am looking at doing a development using one of these type of loans
and will be talking to broker shortly.
Any info will be great fully accepted

Thanks

 

[JoannaK]

Hi Underway,

I don't have time now to respond in any sort of detail, so in the meantime can I respectfully suggest you do a search as there have been some good discussions about construction finance.

 

[APerry]

Hi Underway,

Please be aware that the "Base Rate" quoted is the Bank Bill rate, this is not what you would be paying, there would be a margin placed on top of this. In most cases you are best off using a bank for this kind of loan, if you need some flexibility in terms of things such as income verification or presales then there are numerous smaller lenders that can offer this, but usually at higher prices.

Regards
Alistair

 

[Hernan Crespo]

I dont like saying bad things about people but I guess i should share about my experience with members equity bank just so you guys are aware of it.

We had a development project that required construction funding and ME was one of the people we contacted. The manager was very positive about the project and said he would come to us with a proposal. We waited about 3 weeks and we chased him up quite frequently.

Eventually he just responded with an email (not even having the courtesy to call and explain) that they were not interested to fund the project, because 'it did not meet their criteria'. What a waste of time!

Anyway, that's just my experience. I'm sure other people would have had better ones otherwise they wouldnt still be in business.