PropertySensor

Non-bank financing has become an increasingly important option for property developers in Australia, offering greater flexibility, quicker approvals and access to higher-risk funding than traditional banks. Read our quick article to understand the benefits and risks of raising funds from investment banks, family offices, mortgage funds, high-net-worth individuals or hybrid models. #propertyfunding #propertydevelopment #propertyfinancing https://lnkd.in/gCyWwqZA

Buying a property can be daunting, especially if it’s your first home. The options of whether to buy a house and land package, build a home from scratch or buy an established home is often one of the first questions asked by prospective buyers. We've put together a quick guide, looking at the pros and cons of each option, helping you make the best-informed choice. https://lnkd.in/g4fCcVHS #property #propertyinvestment #firsthomebuyers

Australia's major banks have pre-emptively slashed term deposit rates by up to 80 basis points, anticipating Reserve Bank rate cuts. CBA, NAB and ANZ are making these significant reductions to safeguard their profit margins as interest rates are expected to fall. This move comes as banks face government scrutiny over transparency in deposit pricing following an ACCC review. Despite potential benefits to bank profitability, these cuts diminish returns for Australian savers. The government will nevertheless watch closely how the sector manages these shifts, ensuring compliance with improved disclosure requirements for deposit products. Follow PropertySensor if you want to learn more on interest rates and the property market. #InterestRates #RBACashRate

Australia’s population is growing faster than expected which puts additional pressure on the unique environmental challenges the country faces, including climate change, water scarcity and biodiversity loss. In response to these issues, sustainable property developments have emerged as a vital component of the nation's strategy to mitigate environmental impact and promote long-term population and economic growth. Sustainable developments not only address pressing environmental concerns but also offer economic and social benefits, making them essential for Australia’s future. Read the full article on our website to discover more about the benefits of sustainable property development and learn about four projects in Victoria which are bringing these ideas to life. #propertydevelopment #sustainability https://lnkd.in/guUvWaJQ

Capitalised interest, interest in advance and prepaid interest are three common types of interest payment structures popular amongst property investors and real estate developers. Capitalised interest eases cash flow during the project's non-revenue generating phase but may result in higher debt levels. Whereas interest in advance simplifies budgeting, as interest costs are known and withheld upfront, but may require higher initial cash outlay. Prepaid interest is great for ensuring that the borrower only pays for the actual time they have access to the loan funds, but can incur higher upfront costs. Knowing which structure to choose can vastly impact the success and profitability of your project. Follow PropertySensor for more property news and finance updates. https://lnkd.in/gqJQM-H8 #propertyfinance #propertyinvesting #propertydevelopers

Reserve Bank governor Michele Bullock notes the economic outlook is increasingly uncertain as the path to a soft landing narrows. Despite holding rates at 4.35 per cent, the RBA discussed potential rate hikes. Upcoming inflation data on July 31 will significantly influence future rate decisions amid current economic challenges. If you like news on the Australian economy and the property market, follow us for more. #cashratedecision #RBA

Negative gearing is a prevalent financial strategy in the Australian property market, allowing investors to deduct losses on property investments from their taxable income. This approach involves purchasing property with borrowed funds where expenses exceed rental income, offering potential tax benefits and capital gains. However, it carries risks such as cash flow challenges and dependence on market appreciation. The article provides a quick guide on how to effectively implement and manage negative gearing, highlighting the importance of thorough research, sound financial planning, and regular investment review. If you like news on real estate and property, follow us for more. #negativegearing #investmentproperty #financialplanning

The role of quantity surveyors in construction and property development cannot be overstated; they are crucial from the pre-construction phase through to completion, overseeing cost estimates, tender documentation, and contract administration. They ensure projects remain on budget and schedule, contribute to dispute resolution, and safeguard financial interests across various construction phases, demonstrating their essential function in maintaining project efficiency and financial integrity. Find out more about quantity surveyors and follow us if you like news on real estate development. #quantitysurveyor #propertydevelopment #projectmanagement

Understanding the complexities of milestone payments and cost-to-complete (CTC) methodologies in construction project management is crucial to manage expectation. Milestone payments, structured around predefined work benchmarks, boost cash flow but may compromise quality due to their focus on rapid progress. In contrast, CTC ensures a predictable financial trajectory and consistent payments, prioritising comprehensive project completion over speed. Each strategy presents unique benefits and challenges, significantly impacting project execution and financial management. Follow us to find out more if you like property development. #construction #propertydevelopment #propertymanagement

Construction contracts form the foundation for establishing the roles and expectations of all parties involved in a building project, tailored specifically to the unique demands of each venture, be it residential or commercial. These agreements incorporate detailed cost structures and robust dispute resolution frameworks, ensuring clarity, fairness, and adaptability through provisions for variations, extensions, and liquidated damages to address potential breaches and delays effectively. A thorough understanding of these contracts is imperative in today's construction landscape, characterized by an increase in builder bankruptcies and the rising occurrence of substandard new builds. Explore our detailed article on construction contracts and follow us for more insights into real estate development. #RealEstateDevelopment #PropertyDevelopment