siliconindia | | April 20228In FOCUSProperty development industry can be a very lucrative sector. But property development is no easy task. Far from it. Developers continuously face several challenges, from bad weather conditions to shortages of skilled workers, long delivery times and even rising fuel prices. As a developer, these issues can disrupt planning and budgets.Here is a basic guide to property development financ-ing.What Is Development Finance?Development finance is a short-term financial loan suit-able for first time and experienced developers and build-ers. Generally, development finance affords developers fast access to finance and convenient repayment terms. Often, this type of financing comes with an 3-24 month duration. Even though valuation is important to loan ac-quisition, determining property value varies depending on the type of loan and unique requirements established by the lenders.For instance, mortgage lenders may consider a prop-erty's value at different stages of a project's life cycle. In contrast, development finance can consider property valuation after completion affording you a huge lead time to accrue profits and repay your loans. Property develop-ment finance is a quick-fix financial solution for develop-ers to raise more capital, helping them finance construc-tion material costs and fees for project professionals.When To Consider Development FinanceDevelopment finance has existed in the real estate indus-try for years but it has become popular now more than ever due to uncertainties in the global real estate market presented by the COVID-19 pandemic and other political PROPERTY DEVELOPMENT FINANCE IS A QUICK-FIX FINANCIAL SOLUTION FOR DEVELOPERS TO RAISE MORE CAPITAL, HELPING THEM FINANCE CONSTRUCTION MATERIAL COSTS AND FEES FOR PROJECT PROFESSIONALS THE BASIC GUIDE TO PROPERTY DEVELOPMENT FINANCINGBY si TEAM
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