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Follow on Google News | Understanding Development Finance: Financing Your Property DevelopmentIf you're considering funding your next property development, it's important to address your initial questions and plan ahead. Whether you're aiming for long-term rental income or seeking opportunities to maximize your investment, there are solutions available to simplify the process. Here are some steps to set you on the right path from the beginning. Funding levels will vary at each stage of development due to the distinct nature of each project. Steps to Get Started with Property Development:
30% Deposit Requirement: Example of Property Development: Loan-to-Value Ratio (LVR) and Capacity: Lenders' capacity for development loans is generally influenced by the number of dwellings in the planned development. More dwellings typically require a larger deposit. The larger the quantity of dwellings, the higher the borrowing capacity. Consider Goods and Services Tax (GST): When calculating your development project costs, don't forget to account for GST. You'll need to claim it on building expenses and factor it in upon completion. Lenders fund based on GST-exclusive amounts. https://www.outsideaccounting.co.nz End
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