2024 Property Finance Outlook: Cutting Towards Positivity
2023 has been a year full of challenges (and opportunities). As we approach end of the year, Formation Finance Partners would like to thank you for your ongoing support. Looking ahead into 2024, we see strong positivity in the property and lending markets for three key reasons. 1) Strong property fundamentals All states and territories […]
Funding case study: ‘leveraged buyout’ for development project made easy
At Formation Finance, we’re all about providing tailored and straightforward funding solutions. Recently, we had the pleasure of assisting a property developer in South Australia to refinance an existing maturing loan and purchase the adjoining vacant land from a JV partner who wanted out. Our solution? A simple 12-month loan with prepaid interest, no minimum […]
Funding Case Study: Simple Problem, Simple Solution
At Formation Finance, we’re all about providing tailored and straightforward finance solutions. We take a holistic view of each case, avoiding unnecessary complexities and serviceability assessments. By doing so, we keep costs low for our clients while offering competitive rates and terms. Recently, we had the pleasure of assisting a community-owned not-for-profit organisation facing short-term […]
A Big Revelation from a Small Move by Australian Banks
In recent days (June 2023), two major Australian banks, Westpac and CBA, have announced reductions in the serviceability buffer, from 3% to 1%. This is a small move by banks that most people haven’t noticed, but it carries a significant revelation. So, what is a serviceability buffer? Let’s give an example. Suppose the loan interest […]
How do Residual Stock Loans help property developers?
Most property development projects entail a substantial amount of construction debt funding that must be repaid upon completion. Specifically, for residential projects like townhouses and land subdivisions, the objective is usually to sell enough units to cover the construction debt. However, if the developer falls short of achieving sufficient sales, they may need to refinance […]
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Welcome to WordPress. This is your first post. Edit or delete it, then start writing!
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