Quote:
Originally Posted by VarBreStr18
Fair enough, very few developers sit on multi million dollars for their projects , with the exception of Hong Kong Li Ka Shing’s Concord Pacific. They all borrow from somewhere using their proposed project as leverage. That is exactly why all developers want to sell out fast and get on construction in timely manner to repay their loan .
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Pretty much.
That's why pre-sales are super vital to these big developments because often times you have to hit a certain thresshold or percentage of units sold to show you're viable to financiers to push the project through
You're probably not going to sell out the entire project (even though some do in certain cases) before or during construction, but if you can show enough demand with a decent amount sold, that's typically decent leverage or collateral to use to get (more) funding.
Quote:
Originally Posted by VarBreStr18
Look at Thind which is relatively new and small ish company . They wasted no time to build Lumina. Even Bosa “s Solo District is completed reasonably on time with only 4 to 6 months delay. My argument is private smaller company much more conscientious with time and finance management, they don’t have much juggle room . The sooner they can finish and hand over to consumer the better financial sense.
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Your logic is sound but with one small caveat.
When you use your own money, you carry ALL of the inherent risk in the case of the project failing or stalling (stalls are usually expenses added on top of your budget because all that equipment is usually rented, and then you have insurance/liability fees and whatnot on top of everything).
That might seem like a welcome incentive to get it done as soon as possible, but these sort of projects always come with huge amounts of uncertainty and risks associated with them that you have little to no control over as just the developer or the owner (most typically, they're on the contractor's end), and even though you might have stipulations in the contracts that limit your risk factor and losses in the event of delays, there's only so much delay that any project can carry before the costs begin to accrue even on the developer.
Hence the reason why,....'
other people's money'....always the preferred route.
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