Hey,
Just been thinking about a few scenario's lately and reading up on a couple of the developments around this forum. Just a couple of questions for the developers...
What is the finance structured like? Did you guys start with a couple of IP's, built some equity and then pulled the equity out to fund developments? I assume banks lend on builds, what is the criteria like?
What about servicing a development debt? If you are planning to build a 1Mil development can you borrow 80%? And do you have to have the income to service 800K w/out a rental income? Or do they look at it as if it were finished, and take an estimated rent into account?
Any decent reads to recommend about developing in Australia?
If you developed something in Sydney, and it was 6-8 apartments that you decided to keep, and the land value was over how do you mitigate land tax? or due to the development it makes it just a necessary expense?
Love to hear from you guys & girls!
Aaron
Just been thinking about a few scenario's lately and reading up on a couple of the developments around this forum. Just a couple of questions for the developers...
What is the finance structured like? Did you guys start with a couple of IP's, built some equity and then pulled the equity out to fund developments? I assume banks lend on builds, what is the criteria like?
What about servicing a development debt? If you are planning to build a 1Mil development can you borrow 80%? And do you have to have the income to service 800K w/out a rental income? Or do they look at it as if it were finished, and take an estimated rent into account?
Any decent reads to recommend about developing in Australia?
If you developed something in Sydney, and it was 6-8 apartments that you decided to keep, and the land value was over how do you mitigate land tax? or due to the development it makes it just a necessary expense?
Love to hear from you guys & girls!
Aaron