balmain + commercial + big deals +
Brisbane Townhouse Development
October 09
| purpose | To fund the Construction of 28 Townhouses in Metropolitan Brisbane. |
| loan limit | $5,300,000 |
| lvr | 80% of Total Development Costs |
| loan term | 18 months |
| borrower type | development |
| facility type | construction facility |
| interest rate | 6.40% |
After successfully completing a development of 29 Townhouses in Brisbane with no pre sales, the borrowers went back to their existing financier expecting a similar facility for their current Brisbane project only to be told that 110% of the debt (which equates to approximately 14 townhouses) had to be covered by pre sales.
Balmain arranged highly geared 1st mortgage which required only 8 presales at a very low interest rate of 6.40%.
The need for less pre sales has allowed our clients to begin the project much earlier than anticipated. Now that project has begun several more units have been purchased at higher than presale prices by a mixture of owner occupiers and investors.
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