How Can Property Development Finance Help?
Property development finance is a type of finance that focuses on the world of property. It is designed to help support developers when it comes to residential property or commercial property.
There is a range of types of development finance that can help support you financially during a development project.
In the UK, property development remains a viable market that attracts new investors to begin their property portfolio. In fact, the number of first-time buyers in 2019 is expected to rise. This has gotten property developers excited about the prospect of a highly-profitable year.
R.A Property looks at how property development finance can provide you with the funds you need to help begin your career as a property developer.
What is Property Development Finance?
Property development finance is specialist finance for developers who are looking to build new buildings or homes and sell for a profit.
It’s a great, viable path for funding for property developers who may need extra or fast funding in securing land or to help cover building costs. Read more.
What are the Advantages of Property Development Finance?
There is a range of advantages that makes property development finance an attractive option for experienced and new developers. These include:
- Freedom to pursue bigger projects. Development finance gives you the ability to focus on larger projects that you may not have been able to achieve with your current finances. By providing funds to potentially cover costs of purchasing land or build costs, you can invest your money elsewhere into the project.
- Improves your cash flow. For property developers, especially new owners, managing cash flow can be difficult when funds are tied up in assets. Development finance helps improves cash flow and gives you larger cash reserves throughout the project.
- Reduced financial risk. Ultimately, development finance can help greatly reduce the financial risk when beginning property development. With the extra funds covering other expenses, you can minimise the chances of losing money if things took a turn for the worse.
Always do your research when it comes to property development. Have you already got a property ready to sell? Make sure it remains clean throughout its time on the selling ladder.