Author: Ben Frietlander

The loan-to-value ratio (LVR) is one of the most common and widely used metrics in the world of property finance. For financiers, it is broadly used to manage and mitigate credit risk when creating a loan facility. For property developers and investors, understanding LVRs and their application in credit analysis will provide insight as to the likely challenges you will face when seeking a loan, as well as assist in identifying the best finance partner for your project.   It is important to remember that the simple loan-to-value […]

When developers are looking for a new build partner, they put their project out to tender. The evaluation process that proceeds is an intense and in-depth review of pricing, relevant experience, past performance, technical skills, resourcing, and other relevant factors. It is these factors that ultimately drive the decision-making process for the developer, ensuring that the right builder is chosen for the job.   Unfortunately, many developers forget to apply a similar […]

At ASAP Finance, we work closely with our clients to understand their development finance needs, then craft bespoke funding solutions that transform property ideas to reality.   When we create a loan facility, we analyse each ‘input’ required to complete a project—considering elements such as planning, design, construction and delivery. In addition, we take into […]

Whether you’re seeking a bare land loan or looking for a comprehensive development finance solution, structuring your loan repayments to meet your cash flow requirements will enable you to control your risk and maximise your return. Below is a comprehensive breakdown of the three repayment types; principal & interest, interest-only, and capitalised interest, and the […]

ASAP Finance is an example of a reputable non-bank lender with strong business acumen and a history as a responsible lender. Our financial institution is the ideal place for those who want to accelerate development time frames and maximise return on equity. Unlike banks, we break down the barriers preventing your next project from getting […]

Amid a widespread pandemic, the global economy is caught between cushioning the blow of a recession and planning for recovery. The impact on the property finance market will be significant, albeit mitigated by early policy responses from the NZ government and Reserve Bank. Comprehensive post-lockdown data is yet to be reported, and clarity as to […]

The COVID-19 outbreak will continue to cause significant adverse economic effects that will almost inevitably impair borrowers’ abilities to obtain and service mortgages. And unlike the mainstream banks – which can access new NZ Reserve Bank liquidity and funding support – non-bank lenders have a much more restrictive toolset to combat economic shocks. Billion dollar […]

The impact of the four-week COVID-19 lockdown imposed by the NZ Government on non-essential services will be far reaching for Kiwi developers. We continue to urge our developers in NZ to focus on ensuring the success of their commercial development projects during these uncertain times. At a high level, property developers in NZ will be facing increased […]

When attaining development finance, a key but often underestimated consideration for developers is accounting for Development Contributions (DCs). These costs are confirmed by a local council after lodging for Resource Consent. Getting a handle on what these costs will be prior to lodging for resource consent is key to understanding the profitability of your property project. Furthermore, for land bankers, understanding future DC […]

Property finance in New Zealand has been a difficult market for the past few months owing to the current market conditions. However, there are now signs of renewed life in the New Zealand property market, with Auckland house prices rebounding quite strongly in the last quarter and average values now back above $1 million, according […]