"For months, the most pressing topic of conversation for bankers – whether in Manhattan, London, Stockholm or Sydney – has been how the collapse in commercial real estate values will spill over into the financial sphere."  AFR.

For borrowers, the requirement for real equity, not inflated valuation ratios has never been more pressing. 

Investors are becoming more particular on the type of deals they are investing in, which has changed significantly in the past 8 to 12 weeks.

The collapse in US office tower values is creating a doom loop for banks - read more on the article from the AFR.

"Amid tighter fiscal conditions and need to safeguard financial resilience, the current funding approach has increased risk evaluation imperatives and is resulting in lengthier time frames.  

We empathise with developers experiencing real market stress by borrowers, and Salvest are working harder and longer than ever on each deal to source solutions.

Processes of information collation and review (eg:  QS reports, valuations and certification of costs) is simply taking longer.  As result we are experiencing longer credit approval processing with lower loan to value ratios than previously needed.

We are dealing with a number of proactive investors who have strong appetite to fund land and construction loans from $15m plus, however their due diligence and credit approval processes are more stringent than even 3 months ago. In some instances settlement timelines have been delayed, purely by these processes alone. 

When salvest mandate your project, settlement is not due to lack of funds - its due to elongated project timelines to gather the necessary information that meet our mandate requirements.  Alot of these variables are out of our control, hence working with you to gather more information diligently from outset supports more efficient and faster outcomes.

A typical loan to settlement timeline was 4-6 weeks once all information was provided.  It's now 8-10 weeks, with the cost of capital rising and approvals taking longer. 

At Salvest, we are reputed for our solution focus, and developer approach to property funding working for you to source solutions.
We will continue advocating and achieving results to keep our developers building and our economy supported".  Anthony Ferraro.

Contact Anthony Ferraro : 0412 897 774.  Salvest.com.au.  Lets Talk.