How To Finance Your Next Property Development


Financing your Project

Property development with its multitude of moving parts can be both rewarding and challenging; having the right financing solution in place is essential to success. For newer developers financing can be more difficult as lenders factor in experience and brand when it comes to funding approval. The process of financing your next project and property development is further complicated by the myriad of lenders and range of lending structures in the marketplace.

For developers the imperative is find the right match for their financing requirements so that the needs, particulars and risk profile of each project are catered for. An impartial, independent adviser is an immensely valuable conduit to this process.

First time developing can be difficult. It can often be overwhelming putting in place all the requirements such as builders, quantity surveyors and financiers. Obtaining financing is a critical part of the process, and as a new developer can often prove difficult, many lenders will simply not fund developers with limited experience. It is arduous talking with lenders when you don’t know those who will suit your situation and risk profile best. That is why it can be valuable to let someone else run the financing process for you.

Lending Options

Property development in Australia is financed by a lenders and financers who source capital locally and internationally. Stamford Capital allows clients to access multiple sources of capital including the major banks, 2nd tier and regional banks, non-bank lenders and structured capital providers. We work with developers who are ASX listed companies to smaller niche developers.

In the table below we take a look at some of the key benefits associated with each lender type.


The major banks generally offer the most competitive rates, however 2nd tier banks, regional banks and non-bank lenders often offer greater flexibility. The choice of lender and finance structure is determined by your needs in respect to leverage, pre-sales requirements, and development experience.

A developer will typically start with the major lenders as they will produce the best rates on debt. You will potentially move down to 2nd tier lenders and non-bank or private lenders if you don’t qualify for the majors. There are multiple factors that can contribute to this, limited developing experience or lack of pre-saless are two prevalent issues.

More often than not 2nd tier or non-bank private lenders can provide developers greater flexibility with respect to pre-sales requirements, leverage and importantly in relation to funding those with limited experience.


Current Market Trends

The last 6 months has seen a positive shift in the commercial and residential property market. More liquid capital markets mean lenders are increasing their gearing levels and relaxing their loan covenants, especially for smaller scale loans (loans under $20M).

We have seen an increase in alternative capital sources (2nd tier and private lenders) coming into the market vying for senior debt funding. There has been a broadening of general lending terms and conditions and this has allowed a number of non-bank lenders to become increasingly competitive from an interest rate perspective. For more information Stamford Capital is specialist provider and arranger of capital for property investors and developers.

To find out more about the funding options available to you and to discuss the capital requirements for your next development, contact Domenic on 0411 879 398 or via email or visit Stamford Capital


Setting up a New Owners Corporation?

We work with Property Developers right across Melbourne in setting up their new owners corporation / new body corporates. We work with developers from project inception all the way through to the registration of the plan of subdivision, we cover off on:

  1. Ensuring the Plan of Subdivision is optimal for shared living;
  2. Ensuring all the owners corporation rules are appropriate and ready for your off-the-plan sales agent;
  3. Ensuring the owners corporation budget and apartment levies are ready for your off-the-plan sales agent;
  4. Getting you ready for settlement including the owners corporation certifications needed for settlement to take place.

Speak to a Strata Management Consultant


The content in this paper is intended only to provide a general overview. It is not intended to be comprehensive nor does it constitute financial advice. You should seek professional advice before acting or relying on any of the content.

The contents of this article or website are only intended to provide a general overview of the topics discussed. The author of this article makes no representations as to the accuracy or completeness of any information and the information is not intended to constitute investment, legal or professional advice. You should seek professional advice before acting or relying on any of the content. This article does not contain references to any specific company, organisation or individual, unless expressly specified.
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