Finance for residential developments
Residential development finance
Townhouses and groups of homes, built modular.
Woolong Capital finances modular residential developments, townhouses and groups of factory-built homes on land your company owns, for companies that keep the homes and rent them out. Your builder is paid as each stage is certified, and at handover the facility becomes a principal and interest loan of up to 10 years.
At a glance
Proposed terms, indicative and subject to credit assessment.
Who borrows
An Australian company, or a super fund's company trustee, that owns the homes and rents them out
The site
Land your company owns, with a registered mortgage to Woolong
Your equity
20% of the contract price or more, paid before the first draw
Loan size
70% of the security or less, with the land and the finished homes valued together
The build
Up to 6 months, every stage certified before it is paid, with interest added to the facility
Repayments
Monthly principal and interest for up to 10 years from handover
How a modular development is funded
Your builder makes the homes in the factory while the land is prepared, and each stage is certified by an independent quantity surveyor before Woolong pays your builder. Title to each stage passes to your company the same day. Your letter of offer sets out the draw schedule for the development.
Interest is added to the facility during the build. From handover the homes earn rent, and the facility is repaid monthly, principal and interest, for up to 10 years.
Security on your company's land
The valuer reports the land and the finished homes together, and Woolong takes a registered mortgage over the land. With equity in a property a director owns, that makes up the security, and the loan stays at 70% of it or less. Every facility carries the same 5 pieces of security, all in place before the first draw. They are listed with the full terms.
Questions people ask
Is Modular Build Finance for build to sell developments?
Modular Build Finance is made for companies that keep the homes and rent them out. Talk to us about your plans for the development.
Who values the development?
An independent valuer reports the land and the finished homes together, at the start and every 2 years.
Who can borrow?
Australian proprietary companies, and self-managed super funds with a company as trustee, that will own and rent the homes. Every director guarantees the loan.
Got land to build on?
Send us the site and your builder's plans, and we'll shape a facility around your development.