I have a very lucrative house and land deal, only a small amount of $'s. so i ring a big 4 bank thru which i have previously done some dev funding.
I ask if they are still lending. he says yes. oh good i say. he says we need 100% presales plus equity in the project. ok... I say this is only a 1 off house and land deal that will have a final LVR of around 39% and yields 20% on cost. he says that's nice but you would need to presell it. I say ok, that wouldn't be hard. Then he says, well actually, there's more to it than that, you wouild also need to provide us with a full picture of all of your entities and your incomes etc.
so... now you need 100% presales, equity (30-40%??), serviceability. Can you imagine trying to do a 40 apartment development and demonstrating serviceability?
then he admits that he hasn't done a deal in 12 months and when I asked him if he was bored he said yes.
so I don't know how anythign will get built in this country. Still, Gail Kelly reckons it's business as usual so no need to worry.
thankfully I have found a couple of banks that are still interested in being banks rather than insurance salesmen
I ask if they are still lending. he says yes. oh good i say. he says we need 100% presales plus equity in the project. ok... I say this is only a 1 off house and land deal that will have a final LVR of around 39% and yields 20% on cost. he says that's nice but you would need to presell it. I say ok, that wouldn't be hard. Then he says, well actually, there's more to it than that, you wouild also need to provide us with a full picture of all of your entities and your incomes etc.
so... now you need 100% presales, equity (30-40%??), serviceability. Can you imagine trying to do a 40 apartment development and demonstrating serviceability?
then he admits that he hasn't done a deal in 12 months and when I asked him if he was bored he said yes.
so I don't know how anythign will get built in this country. Still, Gail Kelly reckons it's business as usual so no need to worry.
thankfully I have found a couple of banks that are still interested in being banks rather than insurance salesmen