Unlocking the Best Finance Solutions for Your Renovation and Build Projects: Expert Tips and Strategies

Securing financing for a renovation or build project can be a complex process, but with the right knowledge and resources, you can navigate it successfully!

Finding the right lending solution

If you’re considering a construction loan, it’s crucial to understand the various lending solutions available and what might best suit your needs.

There is a myriad of products and solutions available, but not all will align with your specific goals and financial circumstances.

A great resource is Episode 230 of the Property Trio podcast “Equity Unleashed: Property Planning & Borrowing for Renovations & Wealth Creation,” where we thoroughly dive into the pros, cons, and eligibility requirements of various lending solutions in detail.

Consulting with a Strategic Mortgage Broker is also advisable to explore whether you can draw from your equity to fund the construction or if you need a valuation based on the completed project and a fixed price build contract.

Tips from the Property Planning Australia Team

Tip #1: Recently, we’ve observed that builders have become choosier, often requiring evidence of pre-approval before progressing to the contract stage.  

To navigate this, it’s wise to request a draft contract and secure the required ‘as if complete’ valuation beforehand to ensure the figures align and you can borrow the necessary funds.  

Tip #2: Opting for a fixed price build contract can safeguard you against rising costs in materials and labour.  

However, be vigilant as builders might include clauses that allow for these increases, so reviewing the contract thoroughly is essential. 

Tip #3: Once you’ve chosen a lender, make sure to understand their specific requirements, especially if opting for a progressive drawdown loan.  

Lenders often have stipulations about how the payment schedule should be structured, typically mandating that each stage of construction corresponds to a certain percentage of the total build cost.  

Also, be aware that some builders may attempt to front-load contracts, charging more in the initial stages to cover increased costs, a practice that might not align with your lender’s guidelines and could potentially lead to funding issues. 

Listen to the Property Trio podcast 

For more in-depth insights on financing your construction project and developing an effective mortgage strategy, tune into the Property Trio Podcast, where numerous episodes are dedicated to these essential topics. 

Reach out to us 

For expert guidance on construction financing and lending solutions, reach out to us and let our team help you navigate your next project with confidence. 

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