Case study: Investor uses property equity to purchase future development site.

Investment Opportunity 

Our client was drawn by a property with untapped potential; however, it was initially deemed uninhabitable and therefore, presented significant financing challenges under conventional methods. Our client turned to us for inventive financial solutions, as he could see the development potential. This project stood out as a prime candidate for our innovative approach to overcoming financial hurdles.  

Customised Financial Strategy 

In this strategic endeavour, Dash Money played a pivotal role by offering a custom-tailored financing package. Typically, a development site of either vacant land or a property with uninhabitable improvements would attract a 50% LVR.  

Understanding the property’s inherent value and the client’s vision, Dash Money crafted a solution utilising equity the client had in their Melbourne investment property. By cashing out existing equity, Dash Money was able to provide finance to cover 100% of the purchase price, inclusive of capitalized interest for a year and stamp duty. 

Outcome 

Finance Terms: 

• Security Properties: New purchase and Clients existing investment property. 
• Finance Coverage: Entire purchase price, plus capitalized interest and stamp duty. 
• Loan Amount: $2,075,000. 

This strategic move, facilitated uniquely through Dash Money, enabled the client to swiftly capitalise on the long-term development opportunity. 

Conclusion 

Through innovative loan structuring, facilitated by Dash Money, the client was able to utilise the equity they had built in their existing investment portfolio to efficiently and effectively secure a new development opportunity. 

For investors keen on leveraging their property equity towards achieving expansive growth, Dash Money can assist in structuring innovative finance solutions, tailored to navigate and capitalise on the complexities of the property investment landscape. 

Ready to get started? 

Learn more about how to make your equity work harder for you, speak to a Dash Money Lending Specialist about your lending options.