More profit holding than Development

Just started a 3 unit project. Been on market for 4 months and no presales. Have to fund this one with own cash for bank wont lend without presales.

Hopefully I come out with profit at the end. But you never know. Back in 2012 i developed 2 projects and only made 50k for 6 units. Ouch!!!!

 

It seems the Melbourne market has slowed down substantially. Properties are not selling nearly as quickly as they were earlier in the year, lots are being sold by private treaty and not auction, prices coming down etc etc.

Are you talking about commercial finance for this as you require presales? Is residential finance an option?

 

Is it a commercial development or residential development category?

From what I understand, even if you are building 3 townhouses you can still be classified as residential category and not have the conditions of presales to get financing from banks

Cheers

 

It comes back to the old saying 'you make your money when you buy'. Wannabe developers just don't get this.

 

@leicachamp interested to see how the development is going. Did you sell any?