Are you a property investor looking for refurbishment finance? Read our 5 top tips
Wharf Financial Services sources refurbishment finance for property investors. The following tips will help your project secure the financing it needs to succeed.
- Look at the current value of the asset you are purchasing and assess the value upon completion of
the refurbishment. Talk with independent valuers and obtain a variety of views rather than relying
on one assessor.
- It’s all about the detail. Having a plan in place with an itemised list of the refurbishment work
required and a timeline of when the work will take place gives confidence to the finance lender and
increases the likelihood of your finance broker securing you a good deal.
The plan needs to include:
i) the current cost of materials, (recent price increases have impacted heavily on project costs and
lenders will be looking at this carefully)
ii) The availability and cost of the builders and trades. Recent shortages of trades have caused delays
in project completion. Securing your labour force and factoring in labour cost price rises into your
plan, will help with project approval.
- Seek expert advice from a reputable NACFB registered finance adviser with experienced brokers.
They will understand the mechanics of bridging, ensure your finance will meet your individual needs,
and aid the success of your project. At Wharf Financial Services our brokers are ex commercial
bankers with many years of expertise in helping property developers achieve successful property
- Add between a 10-15% safety net to the financing requirements of your project. Further sharp
increases in the cost of materials and labour and/or unanticipated problems with a property
refurbishment, can all put a strain on your finances and even delay your project. Factoring this into
your finance needs at the beginning of the project will reduce these risks.
- Plan ahead and decide how you will repay the loan. Consider how you will exit the project and
also look at what might need to change with that plan, so that you have alternative exits.