Prudential Finance is Sydney based and services all areas of Australia. Prudential Finance has been procuring development finance for property developer clients for 15 years here in Australia.
Call 1300 550 669 now to discuss your development finance needs.
Development finance from Banks is keenly priced at sub 6% for property developers with experience and good equity in projects. Loan to cost ratios are around 70%. Banks have significantly pulled back lending due to heavier regulation and capital adequacy requirements, although we are finding Bank development finance approvals are still occurring for high quality projects matched with experienced developers.
Mortgage Fund and Private Funds start at 8% p.a. and loan to value ratios are up to 70%.
Developers forced out of the Banking system due to harsher loan criteria are still getting their projects funded by mortgage funds and private lenders.
No Presales Construction Finance is available from 8% p.a.
The property boom is over and the slide in property prices has bottomed and we are now entering a stable real estate market in Australia which is an ideal time for property developers to capitalise on the very low interest rates. Finance commentators expect interest rates to drop again in the future.
Mezzanine finance is readily available for financially viable real estate projects. Interest rates start from 15% p.a. to 20% p.a.
Joint Ventures are available for projects located in capital cities or fringe areas (not regional). Terms are by negotiation.
Prudential Finance is always happy to discuss upcoming projects with investors who would like to achieve a higher interest rate than currently available from Banks or other institutions. Invest directly into property development projects for returns of 7% p.a. to 20% p.a.
This was posted on Facebook by BRW. Very interesting reading!
Published 08 July 2014 10:53, Updated 08 July 2014 10:54
Source: Alexis Knight
If one or more of the following scenarios apply to your startup, you need to change them quickly or go back to the drawing board.
THE PRODUCT YOU’RE LAUNCHING HASN’T CHANGED FROM YOUR INITIAL IDEA
If you are launching a product that you sketched out on the back of a napkin and you haven’t deviated from your original idea, then you’re in trouble. It means that you haven’t listened to your market. It is very rare (I’d even say impossible) that someone will have an idea that has product/market fit from day one. Every company has to have a period where its soul aim is to find what that product/market fit is and you need to be obsessive until you get there. This can involve anything from rewriting your product, changing your team, moving into a different market, or saying yes to opportunities you had never considered.
THE ONLY FUNDING YOU’VE ATTRACTED IS FROM FAMILY AND FRIENDS
This might sound contentious, but the reality is if the only funding you can attract is from family and friends, then signs are not great. Sure, they know you well and believe in you, but unless they have direct experience in the industry you’re targeting, then you have nothing but fools’ money. Even at the angel stage you need to try and attract money that you have had to earn, money that validates both you (investors invest in people) and your idea. Early stage funding is not that hard to come by these days (if the people and idea are solid), if you’re not attracting that, then you need to think long and hard about what this might indicate.
YOU DON’T HAVE A CO-FOUNDER
Solo founders are weak founders. Your co-founder doesn’t have to be a tech person if you’re not one and vice versa, but you need a tight team with a solid vision, and skills that compliment each other. Finding the right founder is something that needs time and patience, but a strong team will beat a solopreneur any day. Paul Graham is well-known for famously listing the solo founder as one of the biggest mistakes a startup can make. A startup is simply too much work for one person
YOU’RE PURSUING MULTIPLE MARKETS AT THE SAME TIME
Small teams, on small budgets, need to focus. If you’re pursuing all your options at once then you are spreading yourself too thin and you will fail. You need to find a focus and nail it before you move on to other markets. If you’re having trouble getting traction in one area, fail fast and move on. But if you are focusing on one thing at a time, then when you find the right product/market fit you have a much better chance at success than if you were trying to establish other markets along with it.
YOUR MONETISATION ONLY KICKS IN AT SCALE
If the only way your BIG idea works is at scale, then … you’re stuffed. This is the easiest way to set a startup for failure from day one. Don’t do it. It makes your job twice as hard as it already is.
YOU HAVE NO DISTRIBUTION STRATEGY
So let’s say you have a great product, you have product/market fit and you have a fantastic co-founder. How are you going to get your “world-changing” product out there? Your distribution strategy has to be part of the product from day one. How many times do founders have to say that they failed because they “never got traction” before we wake up to the fact that their failure was a simple one: they had no distribution strategy. How are people going to find your product? If your answer is advertising, then consider it GAME OVER already. How people find your product is part of your product, social sharing should be a key part of that strategy.
YOUR PRODUCT IS NOT SOFTWARE DRIVEN (OR HAS NO PLANS TO BECOME SOFTWARE DRIVEN)
Innovation is accelerating and software is the reason. In the words of Marc Andreessen: “… the minute you can take something that was not software and make it software, you can change it much faster in the future. It’s much easier to change software than it is to change something with a big, physical, real-world footprint.”
You might not be software driven from day one (hell, it’s better if your minimum viable product is NOT) but that needs to be a temporary state.
Software implies one thing; that innovation is a driver. Remember in the future all companies will be technology companies.
*Alexis Knight (not her real name) has extensive startup experience in both running a startup, and working for an investment firm. This article originally appeared on pollenizer.com.
Rich foreigners with the equivalent of $405 million investment applications for visas were approved in April and May.
The “golden ticket” visas were issued to eighty-one successful applicants, the most issued since the program started in late 2012. Of those, eighty-five per cent were issued to Chinese nationals. So far, 255 visas have been issued by the Department of Immigration and Border Protection worth $1.28 billion sine the launch of the program.
To be eligible for the program, foreigners must invest a minimum of $5 million in government bonds, Australian proprietary companies or ASIC-regulated managed funds. The visa allows the receiver and their family to migrate to Australia and after four years they can apply for permanent residency.
Compared to other migrant visas the recipient has no age limit or standard English language proficiency requirements. Majority of the visas have been issued to people investing in NSW and Victoria schemes.
The NSW government’s Waratah Bond program is among those to have seen an uptick in investment. $1.5 million is the minimum investment over a four year, fixed rate with foreigners apply to be part of the program granted they have obtained a NSW government sponsorship.
Chief executive of ASX-listed Centuria’s, Jason Huljich says, “The vast majority of money is going into bonds. Investors want to put their money into something they believe will 100 per cent preserve their capital base. They don’t care that much about low returns”.
There has been a significant growth in interest in the visa program since the cancellation of long-running Canada’s immigrant investor program. It was cancelled in February with a waiting list of 59,000 people.
Michael Burstin of Oliver Hume Funds Management said “We now have over $30 million committed to our fund and expect a further $20 million once current visa applications are approved later this year.”
Bonds are considered an easy alternative for investors who are either unwilling or unable to identify worthwhile private funds to invest in.
Since the beginning of 2013 we have seen price gains of almost 50 per cent in some areas across Australia. Although the market is slowing, in-demand suburb prices will keep rising.
Amongst the biggest value shifts during this period are Sydney’s Waitara, North Sydney and Manly Vale, Melbourne’s Caulfield, Armadale and Camberwell. As well as Brisbane’s Hamilton and Healthwood.
Looking at the suburb-by-suburb price growth, gives us a good indication of the potential for future growth. RP Data research director Tim Lawless points out that areas filled with affordable family homes in suburbs dominated by owner-occupiers, are the sorts of areas with room to grow as they are high in demand.
He says there is still plenty of buyer enthusiasm as they sense with RP Data figures showing Sydney area Old Toongabbie in Parramatta, show homes are selling on average within 12 days of listing. In other Sydney areas, homes in Blacktown, Lane Cove and Willouhby are selling in less than 20 days with the median price between $600,000 and $900,000.
We take a look across Australia at each states Top 2 suburbs for both houses and units according to RP Data Research.
Median Price ($)
Median Price ($)
Property Investors, earn higher returns on your money by investing in development finance mortgages go to our Property Investment https://www.pru.com.au/property-investment page with Prudential Finance call 1300 550 669 to discuss current opportunities.