Why use development finance?
If you are looking at property development, then the method of financing will be a key consideration. Here at Hank Zarihs, our customers invariably prefer to take out development finance rather than use their own cash - but why is this a beneficial approach?
1. Development finance is a tax efficient means of borrowing, as business loan interest payments are tax deductible.
2. By choosing to progress your project with development finance, you free up your cash reserves for future or additional projects, rather than committing them entirely to your current project. This allows you to invest further as you wish or to keep a contingency fund. When you use up your cash, there is both a risk and an opportunity cost attached; both of which are prevented by choosing a competitive finance offer.
3. The rates of development finance can be very attractive in the low-interest rate climate. This offers you the chance to invest your cash into other asset classes that may potentially earn more.
Some of our customers also look to enter into Joint Venture arrangements, whereby financial investment and returns are shared in order to spread risk and partner with strategically complementary bodies or individuals who can help to strengthen the success of a development project.
At Hank Zarihs, we work with a large and trusted pool of development mortgage providers who offer a range of specialist lending products.
Contact us to find out more:
Email: [email protected]
Call: 0203 889 4404