Finance question
Can I get finance for a retreat or glamping development?
Often yes, if you own or are buying the land and council approval is in place or close. A retreat is funded as a development: land first, then the build in stages, then a term loan once it trades. The nearest comparison we publish, our build to rent guide, has banks funding 55 to 65% of total development cost and non-bank lenders 65 to 75% when there are no presales, subject to lender assessment.
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The short answer
A retreat is a development loan first and a tourism business second
Glamping sites, farm stays and retreats sit between three things lenders usually keep apart: land, construction, and a hospitality business with no trading history yet. Most lenders sort them by security. If you own the land, or are buying it, and have council approval for the use, there is something concrete to value, and the build is funded against its total cost and finished value. If approval is still pending, finance is usually limited to the land, because the outcome is not guaranteed. For a sense of the wait, a new boarding kennel needs three to twelve months through council with no guaranteed outcome (boarding kennel guide), and a tourism approval can run on a similar clock.
With no presales to lean on, a retreat is sized like other builds that have none. The nearest published figures we hold are for build to rent, a different asset, so treat them as the shape of the market rather than a quote: banks fund 55 to 65% of total development cost, non-bank senior lenders 65 to 75% with no presale condition, and private first mortgage lenders can reach 80% of cost on smaller projects (build to rent guide). The same guide notes that land held before approvals can be geared under commercial property finance, with the build funded separately as construction finance. Land you already own is usually counted toward your share of the cost.
After the build, the lender wants to see income. A Central West NSW caravan park with 42 new cabins was asked at $4.35 million against $704,000 of net profit, a 16% return, and sold, and the same guide says cabin income beats powered sites, while tourist sites earn more but seasonally (caravan park guide). Once a retreat is trading, the nearest benchmark is a freehold park, which indicatively funds at around 70% of the going concern valuation, so a finished, trading site is easier to refinance than a half-built one. Furniture, kitchen and laundry gear and vehicles can be financed separately against the assets. Ventas is a broker across 40+ lenders, not a single bank, and there is no upfront fee to you; the lender pays us on settlement.
Do you qualify?
What a lender looks at on a retreat or glamping build.
Land and approval
You own the land or hold a contract, with council approval in place or well advanced.
A costed plan
A quantity surveyor's or builder's cost plan, not a rough estimate.
Income evidence
Realistic nightly rates and occupancy, backed by similar sites nearby.
Your equity
Land owned, cash, or equity in a home or other property.
Why staging the build helps
Land first
Land can be geared on its own while approvals are finalised.
Build in stages
Fund the first cabins, trade, then borrow for the next stage on real income.
Your land counts
Land you own and equity in other property cut the cash you need.
A worked example
A landowner plans six cabins and a reception pavilion. Total cost is $2 million: land worth $600,000, already owned, plus $1.4 million for the build, fees and contingency. A non-bank lender at 70% of cost advances $1.4 million, so the land covers the gap. A bank at 60% advances $1.2 million, leaving $800,000: the land covers $600,000 and equity in a home covers the last $200,000. Illustrative only.
Common questions
Frequently asked questions
Do I need council approval before a lender will fund a retreat?
For the build, usually yes. Lenders want the approved use and plans in hand, because an unapproved site is hard to value. Land can often be funded on its own while approvals are in progress.
Is a glamping site treated differently from a caravan park?
Often. Permanent cabins on a titled block are easier to value. Tents, domes and relocatable structures can be treated more cautiously because they add less property value, so say early which you plan to build.
Can I fund the build in stages?
Yes. Many developers fund stage one, open it and trade, then borrow for the next stage against real income and a higher valuation. Construction funds are normally drawn in progress payments as the work is certified, not all at once.
How much equity do I need for a retreat development?
Using the build to rent figures as a guide, banks fund 55 to 65% of cost and non-banks 65 to 75%, so plan on roughly 25 to 45% of total cost. Land you own counts toward it.
Can I borrow if I have no tourism experience?
Often, but lenders weigh it. A manager, an operator contract or relevant experience helps. A property-backed deal stands on the equity rather than trading history, so a new business can still qualify.