The state of development financing in SEQ

Discussion in 'Development' started by wombat777, 5th Dec, 2016.

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  1. wombat777

    wombat777 Well-Known Member

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    Some quite interesting insights in this article:

    What Projects ‘ARE’ Getting Funded In South East QLD? - TheUrbanDeveloper.com

    • Smaller boutique developments are getting the funding
    • Banks have a blacklist of contractors it seems so choose the right builder
    • Developers are locking in the good builders via design & contruct contracts
    • Smaller developer owner-builders are able to make projects stack up where there are lower margins
    Suggests to me there will be increasing competition for good boutique development sites.
     
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  2. Whitecat

    Whitecat Well-Known Member

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    On what basis are they blacklisting contractors?
     
  3. wombat777

    wombat777 Well-Known Member

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    The article states:


    I would read unknown as exactly that or having a poor track record. I would guess that primarily means contractors with quality, significant cashflow or reliability problems or issues such as excessive delays. Builders very quickly lose street cred with the subcontractors and would develop a bad reputation in the wider industry (including financing industry) when they have significant issues with cashflow or completing projects.