Every property developer knows you can’t pick the bottom or the top of the market.
While some pessimists are calling this is a “dead cat bounce” others are starting to see sunshine over the horizon.
We believe the market is in the early recovery mode and it is time to start planning for the next upcycle.
The roadblock at the moment is the banks (still!) who won’t lend on anything without 110% sales. (That’s 100 per cent sales plus GST plus sales commission.)
This is compounded by the valuation industry still taking a grim view of the prices paid over the past 2-3 years and the banks enforcing their LVRs.
So where is the upturn going to come from?
I know a number of major developers that are seeking sites again – a clear sign the market is setting the foundations for the 2020s.
Plus there is a finite amount of stock in the market and underlying demand is starting to accelerate again.
Once this stock is whittled down prices will stabilise and then start to climb again.
It is time to start planning for the upturn.
If you are seeking construction finance Windsor Capital is offering No Presale Construction Finance on terms up to 24 months.
This is designed to allow developers with quality sites the chance to return to the market and position themselves for the recovery.
If you wait too long you will miss this key opportunity.
Will you be ready to cash in?