RESIDUAL STOCK FINANCE

Need time to sell your unsold stock or recapitalise

Residual stock finance, allows completed but unsold stock in the development to be refinanced for a specified period of time allowing the developer time to sell the stock or use the equity to fund the next project.

General situations for Residual stock facilities are:

  • LVR range will depend on the location of the project
  • LVR dependent on the number of units/Lots unsold to the number of sold in the development
  • units are either assessed as an inline value (All combined in one value) or all individually
  • more time to sell stock
  • allow for re-capitalisation to start another project
  • cheaper rate then a construction facility
  • existing lender (Construction) needs to be paid out