Estimating Project Timeline
Determine the Holding Period
Identify the time between purchasing the land and starting construction. This period includes obtaining planning approvals and consulting with professionals. 00:00
Finance for Land Holding
Understand the financing options for holding the land before construction begins. Different loans may apply for land purchase versus construction. 65
Leverage and Loan-to-Value Ratio (LVR)
Consider borrowing money to maximize the return on equity by leveraging, which involves using loans to finance part of the project. 128
Construction Loan and Utilisation
Determine the maximum amount of money you can borrow for construction and how it will be drawn progressively during the project. 285
Calculate Interest During Construction
Include the time taken for construction and the period required to repay the lender, typically upon the sale of the completed units. 469
Buffer for Construction Time
Allow for extra time in your construction timeline to account for unexpected delays, ensuring accurate finance calculations. 532