ABSTRACT
Two forms of finance are required for property development: short-term finance to pay for the costs of production (i.e. the purchase of land, building costs, professional fees and promotion costs), and long-term finance to enable developers to repay their short-term borrowing and either retain the property as an investment or realize their profit. Whether a developer retains the property as an investment or sells it to realize profits depends largely on their motivation and the prevailing market conditions.
