Sell/Rent Strategy Could Increase Bridging Loan Applications
I hate to tell you but the property markets probably have some way to go before they hit the floor. The in vogue sell and rent phenomenon seems to be creating more repossession opportunities too. If there is anything to be excited about it is that when the market does reach the bottom there will be some awesome deals available. If you’re considering getting into property development now would be a great time to start planning your tactical move.
First-time developers will need to think about getting bridging loans for the all-important “get off the ground” project. There are still quite a few lenders prepared to lend you money for your property development undertaking. You might have to work harder to convince them to provide the funds but nobody said it was going to be effortless!
Property development finance is often easier to secure than a regular mortgage because the lenders can be more sure that you’re approaching it as a business and if you’ve done your due dilligence properly it will be obvious for them to see that lending money to you is apparently safer than lending to a customer who doesn’t have the same goals.
Having said that there are an increasing number of banks who will not touch you with a bargepole even if your business plan realistically indicates that you’re going to make a million in profit! Many financial institutions really have got the ab dabs at the moment and with good reason!
If your credit report has the slightest shortcoming on it you may find it more difficult to get finance of any kind let alone a property development finance loan. No more are the heady days where you could merely walk into your high street broker, claim that you earn 40 big ones a year even if you didn’t and they would line up to give you the cash. Now they are shivering in fright like an abused puppy!
These insecure financial times have led to an exceptional number of people trawling cyberspace trying to find work. Thousands of people Google for data entry at home work in an attempt to supplement their pay. If this is you be wary. There are hundreds of scammers waiting to separate you from your hard earned cash! I would stick to property development if I were you.
This entry was posted on Monday, August 31st, 2009 at 6:11 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.