Link to a Good Development Finance Blog Article: 7 February 2022
A good blog article on development finance:
Note: the article I am linking here has been written by Sam Oughton of Lateral Partners – I have had no dealings with the company. I merely like the content they have offered and this article is highly relevant to new developers. The article is not dated, but I think it is extremely recent. I have already shared it with some developer friends but I think it may be valuable to more people.
I have mentioned before that development finance is one of my weak areas. Overall, I love finance – in particular the international sharemarkets. However, for me, the finer intricacies of working out if a project is a worthy investment was challenging at the beginning. Information was not freely available and what information I could find was behind the closed curtains. In fact, one group would not give me the time of day and wanted me to sign up spending $25 to see their introductory information – yeah, nah! Not good for relationships.
Eventually, I learned enough and began to standardise my own numbers so that I wasn’t caught with the common margin and per square metre rate talk – some of which could have lead to less than ideal decisions (e.g. a high gross margin but a four year project or a super cheap per square metre build rate that excludes many items or is of a lesser quality).
