New Zealand Developers: Save on Financing Costs with Under 8% Interest Rates

Introduction

A bank has introduced an excellent loan product to help developers in New Zealand refinance completed residential developments. This new product aims to help developers hold residual stock until the market improves for better sale prices. 

The past couple of years have been tough for developers. Since the COVID-19 pandemic, development loans have become extremely difficult to obtain, with interest rates remaining high. Even when developers manage to complete their projects, market conditions have declined. Many have had to sell their properties at a loss, while others who want to sell slowly find it hard to secure bank loans. Additionally, private lender rates are extraordinarily high, creating immense pressure on developers. 

New Loan Product Advantages

If you or any friends you know are experiencing these challenges, please keep reading. Today, I am sharing a loan product that can save you tens of thousands of dollars in financing costs annually. 

Refinancing Completed Projects 

If you have already completed your residential property development project but do not wish to sell immediately or cannot sell at your desired price, and banks are not approving your loans, we can help you secure a financing plan through a reputable bank. The combined interest and fees are less than 10%, which is at least 3% lower than other lenders. In just the first year, you could save at least tens of thousands in loan costs.

Housing Price Increase Predictions

Economists from major banks predict that New Zealand's housing prices will increase by 4%-7% in the next one to two years. If you are not in a hurry to sell, you can observe the market for another year and potentially sell each property for tens of thousands more. If your loan remains with other lending companies, even if they agree to extend it, you will still have to pay an additional 2% application fee.

However, the bank I am sharing today offers a two-year loan term upfront. After one year, you will not need to pay for an extension; you just pay the interest, which is under 8%. This significantly reduces financing costs, allowing you to handle market changes better.

Professional Advice for Developers

I suggest that New Zealand developers, regardless of the difficulties you encounter, should contact us. Our extensive experience and professional advice may help solve your problems. Do not let high financing costs become a burden. I hope that with our assistance, you can successfully overcome these challenges. 

If you have any questions or need assistance, please feel free to contact us at 09 930 8999 or add the WeChat QR code below. We are more than happy to help you with any inquiries you may have.

Disclaimer: The content in this article are provided for general situation purpose only. To the extent that any such information, opinions, views and recommendations constitute advice, they do not take into account any person’s particular financial situation or goals and, accordingly, do not constitute personalised financial advice. We therefore recommend that you seek advice from your adviser before taking any action.