Development finance and loans

Development finance and loans

CrowdProperty offers specialist development finance for small-to-medium (SME) development application (DA) approved property projects with speed, expertise, and certainty.

Apply now

What is development finance and how does it work?

  • Property development finance and property development loans in property projects provide essential, specialist funding for the acquisition, construction, or renovation of property projects, overcoming capital shortages.

  • This type of development loan is instrumental during the construction phase of projects, enabling developers to commence and continue their developments without financial strain. It caters to needs for DA-approved projects, such as purchasing land, construction costs, and managing cash flow efficiently.

  • Development finance is a lifeline for developers, ensuring project continuity, reducing the risk of delays, and facilitating the successful completion of property development projects.

Why trust CrowdProperty with development financing and loans?

  • CrowdProperty's value proposition for DA-approved property investments is centred on providing streamlined, expert finance solutions. Our approach benefits SME developers by offering fast, certain funding for projects already holding DA approval, ensuring a quicker start to development. The meticulous due diligence process and first mortgage security provide confidence and safety to investors.

  • With a strong track record of successful project loans and returns, we provide a secure and market-leading platform for lending to SME property developers.

For all loans, we offer:

  • First mortgage security
  • Up to 70% LVR
  • Minimum six-month loan term
  • No hidden fees (just a single establishment fee)
  • No early exit fees
  • Comprehensive due diligence from an expert team
Apply now

Features and benefits of development finance

  • Streamlined application process
    CrowdProperty offers a user-friendly application process, ensuring quick and efficient access to funds for property developers.

  • Expert due diligence and appraisal
    Benefit from CrowdProperty's rigorous project appraisal by experienced property experts.

How it works and things to know

  • The process for obtaining development finance through CrowdProperty is distinctively straightforward and focused.

  • Initially, developers submit their project details online, which are then rigorously assessed for feasibility by a team of property experts. Unlike other property investment opportunities, which might have broader criteria, CrowdProperty specifically scrutinises projects for development potential, ensuring alignment with stringent standards.

  • Once approved, the project is listed for funding, often faster than traditional methods. This approach offers a more tailored and efficient route to funding, focusing on the unique needs of property development, from land acquisition to construction, thereby streamlining the investment journey for both developers and investors.

How to apply

The application process at CrowdProperty is straightforward and user-friendly.

  • Prospective borrowers fill out a simple online form in less than five minutes.

  • They then discuss their project with a decision-maker at CrowdProperty.

  • If the project meets CrowdProperty's requirements, the borrower receives a decision-in-principle offer before the full due diligence process is run.

  • Finally, a credit-backed offer is made and agreed with the borrower.

  • The funding is then raised on the CrowdProperty platform from our community of investors.

  • Throughout the process, CrowdProperty's team of experts provides guidance and support.

Apply now

Frequently asked questions

  • What are the eligibility criteria for obtaining development finance?
    To obtain development finance, applicants typically need to demonstrate a viable property project, a solid development plan, and a credible track record in property development. Financial stability, the project's profitability potential, and alignment with the lender's loan-to-value ratios are also crucial.
    A clear exit strategy is often required to ensure loan repayment.

  • What are the key factors that lenders consider when approving development finance?

    Lenders approving development finance consider several key factors:

    • The viability and profitability of the property project demonstrated in your detailed feasibility study,
    • The developer's experience, track record, builder, and broader team.
    • Financial stability and creditworthiness of the borrower,
    • And a clear, realistic exit strategy for loan repayment.

    They also assess the project's risk profile and market conditions to ensure a secure investment.

  • Can I use development finance for residential as well as commercial projects?

    No, CrowdPropeprty only provides finance for residential development projects. However, we will review mixed-use projects where the commercial aspect of the project is up to 30% of the development.

  • What are the risks associated with development finance?

    • Market fluctuations: changes in property market conditions can affect project viability and profitability.
    • Project delays: construction or planning delays can lead to increased costs and extended loan terms.
    • Cost overruns: unexpected expenses in development projects can impact financial planning.
    • Regulatory changes: Amendments in planning laws or building regulations can affect project completion.
    • Interest rate risks: fluctuations in interest rates can affect loan repayments.
    • Sales risks: challenges in selling or leasing the developed property at expected values.
    • Developer's performance: risks related to the developer's ability to complete the project as planned.
    • Environmental issues: unforeseen environmental problems can delay or halt development.