56 – Money markets, construction funding and property development finance outlook for 2019

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By Justin Gehde. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.
The current property and finance markets are very dynamic, which creates uncertainty and opportunity. To give you the latest update on the lending landscape and an outlook for 2019, I speak with two very experienced financiers about what to expect. I chat with past guest Dan Holden from Holden Capital about the state of the lending market and what’s ahead for 2019, Dan is joined by his chairman Steve Wiltshire, and together they bring an enormous amount of finance experience to the discussion. I know you love a finance conversation and this one is chock full of tips and ideas. Given the dynamic nature of the current lending market I thought it would be helpful to speak with them about what they are seeing in the money markets, the impact of the banking royal commission and what they expect for the remainder of 2019 from a finance perspective. We also talk about what developers can do to thrive in this environment, and some great tips for how to set your developing business up for success. This is another fruitful trip down the gold mine, so get ready to pick up all the nuggets that Dan and Steve offer up. Tips for Property Developers Here’s three things I took out of our conversation. 1. Really understand your property developing business Steve mentioned that the successful developers he has worked with really knew their business and their product. They undertook extensive and ongoing market research to ensure their offering was in line with what the buyers want, they didn’t just stick to what worked last time. They also understood their business model and didn’t tinker with it every few days based on bad media stories, and importantly they clearly focused on conserving and sustaining their capital. 2. Consider factoring higher funding costs into your property development feasibility Rather than hang around waiting for the cheapest finance deal, it may be worth including additional funding costs into your feasibility. It might cost you more in the long run waiting around for those pre-sales and for the bank to assess your application. So what funding changes could you absorb in order to get started or finished sooner? 3. Be prepared to adapt and act in a changing property market Property and funding markets are dynamic, at any stage usually, so sitting around looking over your shoulder and waiting for things to get back to what they were is not going to change what you are facing, so I think it is wiser to weigh up your options, consider if you need a different finance deal and take some action to get your projects underway. Be proactive and decisive. Okay, if you enjoyed that chat with Dan and Steve then you may enjoy my earlier chats with Dan in episode 35 where we discussed the funding secrets of elite developers and episode 14 where we covered clever property development funding tips like how to use your capital effectively. The content is still highly relevant today. Remember to drop a comment in iTunes if you are enjoying the show. Thank you to those legends that have already done so... If you are pumped up and want to take action on learning how to develop property, then email me, justin@propertydeveloperpodcast.com to find out more about the property developing mentoring program. Links Holden Capital - http://www.holdencapital.com.au

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