Timing is crucial when it comes to investing in property. If opportunities arise in the property market, they often need quick response, this is where traditional financing options can cause you issues. Bridging finance could be the perfect solution, designed to ‘bridge the gap’ between purchases and long term finance options.
Speed and Efficiency
The speed of a bridging loan is easily one of the biggest benefits when it comes to using a bridging loan for property purchase. A traditional mortgage can take months to process whereas a bridging loan can take a couple of days! Which is perfect if you are in a competitive market as the speed of your financing can be the difference between securing the property and losing it.
Flexibility in Financing
A bridging loan is also a super flexible financing option as you can use them for a variety of purchases within your investment. Such as buying a new property, funding renovations, purchasing property which may not qualify for a regular mortgage as they are in a bad condition. Alongside this, they are also flexible in terms of the loan terms too, they can be tailored to fit your specific requirements.
Leverage in Negotiations
A bridging loan could also give you significant leverage when you are taking part in the negotiations for the property. Sellers are usually more likely to accept buyers that have immediate access to the funding, this can be your advantage over the other buyers who are still waiting for approvals on their mortgages. This will also allow you to negotiate the terms and maybe even secure a better mortgage price.
No Need to Miss Out on Opportunities
The property market can be unpredictable and a new opportunity could come up at any moment. Securing a bridging loan can allow you to make the most of these opportunities without having delays such as waiting for your current property to sell or for other financing to come through. This ability to move so quickly on new projects can be the difference between securing a valuable asset and losing it.
Facilitating Property Development Projects
Bridging loans are also useful for property developers too, they can provide you with the essential funds needed to purchase and renovate new property allowing you to quickly increase the property value before refinancing with a traditional method. This will allow a property developer to take on more projects at the same time and maximise profits, the flexibility of this option can also help with cash flow during the project and making sure funds are always available.
Bridging loans offer a range of benefits that can make them an invaluable resource for property investors. Their speed, flexibility, and ability to provide immediate access to funds can be the key to seizing opportunities in a fast-moving market. Whether you’re looking to secure a new investment property, undertake a development project, or simply ensure that you don’t miss out on a great deal, bridging loans can provide the financial bridge you need to achieve your property investment goals.
There are a number of benefits of bridging finance, making it an invaluable option for property investors. The speed and flexibility can help to provide immediate access to the funds needed to complete the project at hand. Whether you are looking to secure a new property investment, renovations or development a bridging loan from Pyxis Capital can help.
