For many developers, the end of the construction phase doesn't immediately lead to selling the developed properties. Holding properties can be a strategic choice, but it requires careful financial planning.
Holding properties can serve as a means to generate rental income, providing a stable cash flow, though this comes with its own set of management responsibilities and associated costs. Additionally, this approach allows developers the flexibility to time the market, potentially waiting for more favourable conditions that could maximise sale profits. However, it's imperative to thoroughly understand the financial implications of holding properties, such as the impact on cash flow and the nuances of tax obligations, including potential capital gains tax considerations.
Our team can advise on the financial products and strategies that can support your decision to hold properties, from interest-only loans to refinancing options that free up cash flow.
Embarking on any development project involves careful planning, especially in the financial realm. ConstructionLoans.co.nz is here to provide expert advice and tailored financing solutions, whether you're releasing equity to start your project, navigating the complexities of building on a lifestyle block, financing civil works, or planning to hold properties post-completion. Reach out to our team at 0800 100 300 or www.constructionloans.co.nz to discuss how we can support your development goals.
