Property Development Financing
ZUNE TH
S AT TA R
Property Development Financing Zuneth Sattar
Financing for property development is a key aspect a first-time developer should consider. While an experienced company or individual will likely have a few options, first-time developers must consider whether to finance a project themselves or seek other sources. There are a lot of options, from unsecured loans to mortgages, so developers should take their time to assess what fits their need.
Buy-to-Let Mortgage Developers interested in purchasing a property for renting can consider a buy-to-let mortgage, which is different from the conventional mortgage offering. For starters, buy-to-let mortgages require larger deposits and attract higher interest rates.
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Bridging Loan A bridging loan is typically short term and charges high interest. People who commonly take out this loan want to purchase a property, renovate and sell it. The proceeds of the sale can then be used to clear the loan and interest amount.
Property Development Finance Property development finance covers loans targeted at established developers and loans used to undertake heavy refurbishment projects. A developer’s track record is one of the considerations used for assessment.
Unsecured Personal Loan If the financial need is for a small renovation project, then an unsecured personal loan can cater to this.
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