AFG Blog

The impact of Bridging Finance

Bridging finance is a short term loan that property investors, developers and even builders use to bridge the gap between when a property is sold and when the money can be paid. Bridging finance can also be used to refinance or renovate property while long term financing is not yet in place. Bridging finance as a sector has grown significantly in recent years, and has left an undeniable impact on property market trends and prices.

Acceleration of Property Transactions

Bridging finance provides quick funding access which enables property investors and developers to take advantage of new opportunities and cover any unexpected expenses. This has created an increase in the number of property transactions as selling your house no longer remains such an arduous process. In addition bridging finance has also shortened the time frame associated with property transactions which has reduced costs and simplified the transaction process.

Supports Property Development

Bridging finance can also be used by property developers to secure the funds necessary for the acquisition and developments of new property. The bridging finance loans can be used to redevelop or refurbish property that can then be sold or rented out. This trend has led to an increase in the number of properties being developed and made it easier to buy and sell houses.

Increases Property Prices

As more properties sell, prices for properties tend to rise. With an increase in investors and developers, more competition builds up around desirable properties and the number of new property projects and developments increases

Facilitating investment

Bridging finance can also be used to facilitate new investment in properties, whether this is done to redevelop or renovate a property bridging finance provides a solution where typical finance options are not available. Developers can use bridging finance as another tool to further increase the success of their developments.

Conclusion

Bridging finance has had a significant impact on the property market. Moulding the trends and prices based on how it increases the amount of property transactions. It can greatly accelerate transactions and provide support for developments and renovation as well as increasing property prices and boosting the property economy.
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2023-02-13 13:54