If you are thinking of applying property development finance, don’t rush into it. Before you go ahead and sign that contract, make sure you know what you are agreeing to. The following are some of the things you will have to consider before financing for development:
Decide if the financing is really necessary. If you have alternative sources of finance, it wouldn’t be necessary to take on more debt. What’s it you need property development finance for? If there’s a need, don’t hesitate to go for it.
Short-term or long-term? This is all about the length of time you can take to comfortably repay your debts.
The amount of money you need. Make sure you know exactly how much your project is going to cost to avoid under-funding or your application being declined due to inflated estimates.
Know the attendant costs. Financing for development comes with costs such as fee, commissions, and interest rates. Can you afford all these?
What are the options? Don’t just narrow down to one financial institution before doing your homework on the others in the industry. The cheapest option should best serve your needs.
Once you are sure you have checked all the right boxes, you can go ahead and sign that contract for development finance.