Refinance for 12 Apartments
Red & Co. Finance recently conducted the refinance of all the apartments (10 units and 2 houses) in a recently completed complex in the inner northern suburb of Kedron in Brisbane.
We call this deal a residual stock refinance (take out finance). This is where a developer has existing unsold stock in their project where they either need to repay the construction lender, or release equity for other investment purposes.
The client was a self employed builder-developer with a complex existing financial and income structure. This client had banked with Westpac his whole life but was keen to diversify his funding channels. We secured a prominent non-bank lender to fund the deal on a variable interest only rate of 6%. This was only slightly more expensive than where the major banks were pricing the deal. The new funding paid out Westpac’s construction loan and provided significant cash out to the developer.
- LVR up to 65% available
- Variable interest only rate of 6%
- Interest can be serviced or capitalised for flexibility of cash flow
- No early repayment fees
- Low doc with flexible servicing requirements
On top of this, settlement was effected in a prompt manner and prior to individual titles being issued.
We are doing a high volume of residual stock facilities at the moment of all shapes and sizes. Call Greg Turner on 0417 698 345 or email your scenario to [email protected].
Whether you require only 1 property to be refinanced, or 50 – we have a debt solution to suit. We have access to cheap bank and private funding. We also have access to more sophisticated lenders through our relationships with financiers from Sydney and Melbourne.