Land Banking

If you’re a property developer seeking to expand your portfolio through a land banking venture, our lending experts can assist you with a competitive solution. We collaborate closely with number of private funders to provide you a cost effective bespoke solution, high loan-to-value ratios (LVRs), flexible terms, and serviceability criteria to align with your needs. See below some of the reasons why our clients love us for their Land Banking loan needs.

No Doc Loans

We have products that are funded without requiring any serviceability and are based on your exit strategy and plan

Reliable Terms

Solutions that offer 12 to 36 month terms generally sufficient for executing a complete subdivision project

Quick Turn Around

Lenders that offer approval within days for urgent settlements

Hight LVRs

Our panels offer industry leading Loan to Value ratios to help you maximise the investment potential

Experienced Team

We have over 20 years of combined investment experience in the management team

Competitive Rates

With a range of Private Lenders on our panel, we ensure you get the most competitive interest rates

Top 5 reasons why investors do Land Banking?

  • Investment Diversification – Land Banking is part of most seasoned investors that are ready to explore additional strategies as part of their wealth creation journey, in addition to the traditional residential property investment option. Given the limited supply of land, it has proven to be very rewarding historically if proper due diligence is done for the project.
  • Appreciation Over Time - Land banking mostly involves acquisition of undeveloped land in areas with significant growth potential. Over the course of time, as the region experiences economic development due to various factors, demand for land rises and creates wealth for the investor.
  • Control Over Development – The investors can fully control the development process of the land held. During the holding period, investors can seek approvals and permits for development based on their project needs and vision to manufacture equity through the process.
  • Long Term Investment – Over the long-term Land Development can drive strong profitability and growth if planned carefully. It does require patience and careful planning to ensure project success. It is suitable for investors that have holding capacity which can be through an outright investment or being able to afford monthly repayments for a loan facility. Lending facilities for Land Bank have higher constraints compared to a regular residential investment loan. Our team of experts can help you find the most affordable solution.
  • Strategic Buying – Location is the key for land banking projects and successful investors strategically buy large parcels of land based on upcoming developments in the area. It requires extensive research and deep understanding of the local government policies and plans.

Top 5 areas to be mindful when getting in Land Banking?

  • Financing Options and Terms:  Lending for Land Banking generally comes at a higher cost compared to traditional lending due to the level of risk involves for funders. Traditional lenders, private lenders, and even specialised lenders that only focus on land banking may offer different terms and interest rates. It is important to understand the terms upfront, down payment or deposit requirements, and interest rates. Speak to one of our Experienced Land Banking experts upfront before you commit to any project.
  • Creditworthiness and Financial Stability:  Lenders will need to be comfortable with your financial stability even for a No Doc loan through a private lender. For No Doc loans having a robust exit strategy is also the key as the funders want to know how the loan is going to be repaid at the end of the loan term if there is no evidence of serviceability. The funders want to see a good balance sheet to be comfortable in lending at a competitive rate. Unlike traditional lending, premium interest rate gets charged if the funder is not comfortable with the overall financial position of the borrower. Discuss your personal and business finances with one of our specialists before starting the process
  • Land Zoning and Approvals: Investigate the zoning regulations and local govt land-use policies in the area where you plan to acquire land. It is also important to understand the approval timeline and associated costs in order to work out the total holding budget. First time investors often ignore the holding cost when working out project feasibility only to be disheartened at the end.
  • Due Diligence and Feasibility Studies: Conduct thorough due diligence and feasibility studies before acquiring the land. Engage professionals such as an architect, town planner or mortgage broker as part of this process. Not every block of land has the potential for growth for eg land that is listed as heritage or is allocate to protected habitats or prone to natural hazards will not get approved for development. Assess factors such as market demand, infrastructure development, environmental concerns, and potential legal restrictions.
  • Exit Strategy: Develop a clear exit strategy. Lenders want to see how you plan to generate returns on the proposed investment. Whether it's through selling, subdividing, or developing, a solid exit plan enhances your ability to secure financing.