All Posts by Brett Alegre-Wood

How to sell your development before the ground is broken

Marketing tips to help off-plan property sales fly

In these difficult times, we’re receiving more calls than ever from developers who want to boost their sales. Some have already started the process of marketing. They’ve produced stylised brochures, an appealing website, and persuasive advertising. Others haven’t yet started putting together a marketing package.

With competition for off-plan property sales heating up, developers need to target their marketing efforts to reduce costs and increase sales success. We’ve put together these seven tips to ensure off-plan sales success, however early you want to sell your development even before the ground has been broken.

1.    Brand the development

Branding the development is essential. Naming a property gives it life, a vision in the eyes of property investors and home buyers. Let the name tell a story, perhaps of a previous life or shape of development – how about ‘The Potteries’ or ‘The Crescent’? A clear, crisp name gives your development personality. And personality sells.

2.    Emphasise lifestyle benefits

Home buyers want lifestyle benefits from their new home. So, too, the buy-to-let investors – it’s easier to find tenants when you are letting a lifestyle property. Emphasise locational benefits of your development. “Five minutes’ walk to the mainline station, and only 20 minutes from the city”; “In the heart of the city, where residents and businesses are benefiting from a massive regeneration programme.” Find the reason for people to want to live in a property in your development, and market to this desire.

3.    Go 3D with your floor plans

Standard 2D floor plans mean little to most people. They are simply lines on a piece of paper. Producing 3D floor plans turns a concept into something more real – especially important when there are no show homes to view.

A 3D floor plan, presented room by room and including furniture, fixtures and fittings, allows investors to visualise what it is they are buying, and space they are investing in.

4.    Build on locational benefits

Investors buy where property fundamentals are strongest. They want property near shops, schools, transport links, major employers and major investment. Trumpet the locational benefits of your development. We do.

We produce comprehensive area guides for investors, highlighting the reasons why investors should buy where you are developing. It is a powerful marketing tool on its own. When combined with your marketing resource, it becomes irresistible.

5.    Make an offer that investors can’t refuse

It takes courage for a property investor to buy a property that hasn’t yet been built. By the time we’re at the stage of marketing your development to investors, we have spent years developing trust and getting to know our property investor clients. To cement this trust and seal the deal, what better than a price point that savvy investors cannot refuse?

Your marketing brochure has done its job. Our area research has provided further impetus to the marketing message. The hook has been baited. A sensible pricing policy will reel in the investor. Switch down the price slightly, and switch up the investment opportunity from great to irresistible.

6.    Provide exclusivity

Early-stage off-plan success could be accelerated when you make an exclusive offer. Off-market marketing, to a targeted and already identified investor base. Properties that people will want to buy, in an area in which people want to invest, at a price that makes sense on all levels. And offered exclusively to a select group of investors. Suddenly, the irresistibility of your off-plan property sales is ratcheted up even higher.

The developers that do these three things will find their developments sell out, while others remain unsold.

7.    Good marketing sells off-plan property

When we work with developers, selling to our investor clients at home and abroad, we concentrate on marketing. The quality of our marketing materials helps sell your off-plan property. It provides a focal point to concentrate our face-to-face discussions.

Like you, we employ highly experienced and professional researchers, writers, copywriters, photographers and designers. We make certain our marketing materials echo the opportunity that your development offers.

Contact us today on + 44 207 923 5680. Together we’ll work to achieve your sales targets, and excel where other developers fail.

Live with passion,

Brett Alegre-Wood

Firecracker features that propel off-plan property sales

How a developer can sell when others around them fail

Off-plan property sales can be tough, especially when the market is slowing down, as it appears to be at present.

The hung parliament that resulted from general election 2017 was another blow. It has done nothing to instil confidence in a market still reeling from the UK electorate’s decision to leave the EU. This on its own, though, shouldn’t deter investors in regional off-plan property. But there are also other factors in play. Economic numbers have been mixed around the world. The recent Grenfell Tower tragedy is likely to deter homebuyers from considering a purchase in any tower block.

There will be developers who can still sell significant numbers of properties off-plan, despite a slowdown in a market that appears temporarily saturated. What is it they do that creates such success in their off-plan property sales? How do they achieve enough sales to pay for the development before it is completed? Where and how do Castlereach help developers hit their targets?

Here are three firecracker features of the most successful developers selling properties off plan.

A successful track record

When you have targets for your off-plan property sales, property investors want to know that their investment objectives will be met. They will have their property investment strategy designed to achieve this. They want to know that the developer they are buying from has a record of delivering developments to the quality anticipated and within the quoted timeframe.

Developers that have delivered multiple and similar projects in the past will have the experience needed to know how long a project will take to reach completion. Our investor clients want to know that a property they agree to buy – perhaps before ground has even been broken – is going to be delivered on time. They can then develop their investment strategy in line with this. It gives them a definitive completion date to aim for and allows them to arrange any required financing.

When we work with investors and offer them property investment opportunities, the investors know that we have already done due diligence investigations on the developer. We’ve assessed the viability of the development from its location investment potential, and from the ability of the developer to deliver on their promises.

The investor buys the property off plan and benefits from the potential of an increased value at the time of completion. The developer meets its targets more easily, because of our reach to the UK and overseas investors and the reputation we have built up with them.

Anticipation of residential living needs

A second feature of the most successful developers is that they anticipate the future lifestyle needs of the people who will inhabit their properties. They create places in which people want to live near to transport and recreational amenities, and with ‘in-house’ amenities that sell.

Such amenities may include elements like pre-wired communication boxes, for instance. It removes the need for a resident to lay cables around their home to wire in their entertainment systems, computers, television, and so on. Systems which connect audio in all rooms and increase energy efficiency are going to be in demand. Intercom services, with a video link to front gates, allow residents to welcome guests and vet visitors more easily may become a standard in the future.

Gyms, open spaces, communal swimming pools and the like all add value in today’s market because tomorrow’s residents are likely to desire such lifestyle features. State-of-the-art security and safety features are likely to be more sought after, because of the recent tragic events in Kensington.

Developers that know what their customers want will win. And this brings me to the third feature of red hot off-plan property sales: knowing the customer.

The best off-plan property sales are made when you know the customer

Investors today are more sophisticated. They have wider and easier access to information. They understand who their target market will be – whether they wish to sell for capital gain or rent for long-term income, as most of our investor clients do.

Blanket marketing doesn’t work anymore. In fact, it can do more harm than good, especially during those early-stage, off-market sales efforts. The best strategy to maximising off-plan property sales is to know your customer. When you understand the investor, you need only to market under the radar to those investors who have expressed a desire to invest in the type of property, area, and a price point which is being offered. The success ratio rises because you are marketing to those who are most likely to buy.

It can take years for an initial meeting to evolve to a level of trust and confidence. It is usually reserved for the personal relationships. We communicate constantly with investors. And use social media and email, voice, and SMS communication strategies. We hold seminars and webinars, and our property consultants are proactive. They discuss investment strategy and the latest property investment opportunities with their clients. We then provide investment education and research to cement buying decisions. It’s unrealistic for a developer to put effort into locating potential investors. And spending the time and effort to develop hundreds of individual relationships.

When we work with a developer, we do so because we are confident that:

• The location will provide investors with above-average returns through the long term
• The developer will deliver to quality specifications and on time
• We have the investor clients on board who are likely to be buyers

A deliberate strategy for off-plan property sales

Off-plan property sales don’t just happen. It’s a deliberate process, connecting the dots between plans and execution. Developers should evidence a track record of delivering a quality product on time. And homes that cater to people’s lifestyle needs. This helps to build trust with buyers. Those buyers must be targeted carefully and quietly. To do so, it’s imperative to know who they are and to have developed a meaningful investor relationship with them.

The developers who do these three things will find their developments sell out, while others remain unsold.

Contact us today on + 44 207 923 5680. Together we’ll work to achieve your sales targets, whatever the market condition.

Live with passion,

Brett Alegre-Wood

Leveraging investor reach to boost off-market property sales

We started marketing your development years ago

Off-market property sales in the post-general election era look set to get tougher. The UK and overseas investors may become more hesitant to commit funds to a market that could be unsettled, despite Theresa May’s claims of forming a government to ensure stability. However, while many press headlines in the coming weeks are likely to send shivers through the hearts and minds of some investors, we’ve witnessed an early uptick in positive interest.

Why are our investor clients more positive than the press?

Our investors are savvy people. By the time they invest in off-plan property opportunities, they are highly educated about the UK property market. When others see nothing but dark clouds of pessimism, our client base focuses on the silver lining.

UK property fundamentals remain intact. There are excess demand and a backlog of unsatisfied demand that stretches back years. The economy may be shaken, but is unlikely to be stirred. The nature of the election result will not alter the massive governmental infrastructure spending already pencilled in for the next decade. In fact, it may serve to loosen the purse strings a little, with the potential for greater investment in public services.

We’ve worked hard over many years to educate investors from the UK and overseas about the attractiveness and long-term qualities of UK property investment. And how better to invest than in early-stage off-plan developments?

Our marketing of developments begins months or even years before a client invests. A long time before we have selected the area, outstanding location, and developer and development.

Off-market property sales made with educated confidence

We actively promote property investment education. Our educational resource may be the most extensive, focused solely on property. It is centred on the Gladfish Blog, which consistently ranks in the top 100 investment blogs and websites for investors worldwide. Also, we provide investment education material which includes blogs, articles, newsletters, videos, podcasts, webinars, books and research.

Our Gladfish property consultants help to keep investors grounded. Our market news and commentary removes the BS and sensationalism preferred by traditional media. We tell things like they are, ensuring that investors understand how to analyse news and ignore misplaced views. It helps investors take a long-term view.

Consequently, we find that our clients take advantage of sluggish property markets caused by short-term shocks. They understand that it is the underlying property market fundamentals that drive long-term returns. Also, as we provide free investment education and unbiased market commentary, we build long-term relationships with investors. These investors benefit from our approach to research.

Selecting and recommending the best places to invest in property UK

While we provide investors with the knowledge and tools that enable them to undertake their property research, we, of course, go above and beyond. We do the research for them.

We’ve developed a Ripple Effect Pentagon and unique Hotspots Algorithm, which pinpoint the top performing areas for investment. These tools and techniques are easy for investors to understand, and have proven to be remarkably accurate in their forecasting capability.

We analyse 108 data points across 324 UK areas and identify those areas in which the property fundamentals are strongest. We rank these areas, so our clients can see at a glance the best places to invest in the UK property market. Then we produce detailed investment guides that walk investors through the specifics and dynamics of each area. And we allow investors to download these for free.

Drilling down to specific location

With the best areas identified, we then drill down to pinpoint specific locations. It is where those property fundamentals come most strongly into play. Locations within walking distance of transport – or near shops, for example – rank high on the list of positive pointers for investment potential. With location identified, we then search for the final piece in the jigsaw.

Developer and development – sold!

Throughout our process of education, research, and location selection, our clients’ confidence increases. We ensure that we do things right, and throughout communicate the necessity to be cautious. For example:

• Always undertake extensive research
• Never invest without completing comprehensive due diligence
• Invest with property fundamentals
• Overestimate costs, and underestimate income

The penultimate step in our long-term marketing strategy to connect long-term investors with developers is to carry out due diligence on developers and individual developments. When we put that final piece of marketing in place – offering a specific development to a highly targeted slice of our investor client base – we do so in the knowledge that every piece of the off-plan investment opportunity stacks up.

Our investors are already three-quarters of the way to making a buying decision by the time we market an off-plan property to them. We’ve guided them by:

• Educating, inspiring, and instilling confidence, no matter the market conditions.
• Collecting client data, and learning their investment preferences and objectives.
• Identifying area and location for investment.
• Marketing the best developments from the best developers, in the best locations, to investors who are already warm to the idea of investing upon our recommendation.

We’ve sold over £750 million of property across the UK since 2004. We’ve helped more than 2,500 property investors achieve their goals. And we’re still building. Investors from abroad are making up an increasingly large proportion of our business ­– aided by our international reach (for example, in 2015, we conducted client meetings in 11 different countries across Asia, the Middle East, and here in Europe and the UK).

The marketing of your development has already started. In fact, it began when we first met our investor clients who will buy your development – and that was before your development even hit the drawing board.

Contact us today on + 44 207 923 5680, and we’ll start developing our segmented investor client lists specifically for marketing your new build development.

Live with passion,

Brett Alegre-Wood

A hung parliament shouldn’t deter investors in regional off-plan property

What now for off-plan property sales in the UK?

So, general election fever is dead and buried. For now, anyway. But what impact is the hung parliament likely to have on off-plan property sales? We think the effect may be muted, especially in the regional cities where recent investment news has indicated resilience, stability and growth.

There will, of course, be warnings from property experts who predict the collapse of property values across the UK. Newspaper headlines will trumpet the demise of the buy-to-let investor. A period of political uncertainty as we dodge Brexit bullets, on top of UK property tax changes (which supposedly mean that “BTL is no longer profitable”) will prove the death knell for investment in the UK. At least, this is what the scaremongers would have everyone believe. Hasty developers may be tempted to pull their off-plan sales plans.

Swift action needed and taken

Perhaps we should learn from recent history. In 2010, the conundrum of the hung parliament was answered by the formation of a coalition government after several days of negotiations. Contrary to what people expected, the Conservative/Liberal coalition saw out its term. The government proved to be stable.

Mrs May has acted even more swiftly than David Cameron did in 2010. Within hours of everyone waking up to the news of a hung parliament, and wondering “what next?”, Mrs May announced she would seek a deal with the DUP, and put a new government in place.

In the aftermath of the vote, the pound fell by around 2% against the dollar and the euro and then stabilised. The stock market, which many expected to collapse, rose by a shade more than 1%.

The swiftness of Mrs May’s actions has gone some way to calm the markets. The need to keep the DUP on board might force the Brexit negotiation team to be less confrontational. The chances of a good deal for the UK may increase.

No bounce in property values, but an opportunity to take advantage of fundamentals

The post-election bounce in property values that many had predicted after a convincing Conservative victory may not happen just yet. However, if the negotiations begin well and the Con-DUP pact remains solid, there is no reason why UK property values should not perform similarly to the period between 2010 and 2015. The exception may be that this time around London gives up its star billing to the regional cities.

This election has not changed the startling shortage of new homes in the UK. In January 2017, the National Audit Office reported that there are more than 71,000 homeless households in England. A Parliamentary report confirmed estimates that demand for homes in England runs between 232,000 and 300,000 a year. The government’s target of 200,000 new homes built each year would fall some way short of the lowest estimates of demand, even if housebuilders had the capacity to pump up supply to target levels.

By the end of this parliament, investors from the UK and overseas who buy off-market and off-plan property in this market lull could be looking back and congratulating themselves for taking advantage of a politically prompted pause in the property market.

Investment attention turning away from London

London will continue to be a major centre for property investment, but the focus has shifted in recent months. Property in cities like Liverpool, Birmingham and Manchester are more affordable. Yields are higher. Significant spending on infrastructure and regeneration is ratcheting up inward investment.

Off-plan property is still in demand in these key regional locations. Supply has failed to keep pace with demand. Population growth, both at current levels and forecast, could widen this differential. Multi-billion pound projects, such as HS2 and HS3, offer significant potential for future growth. Travel times between major cities in the Midlands and the North and to London will be slashed.

We’ve seen increased interest from overseas investors in particular. The most recent fall in the pound is likely to prompt renewed search for value property investment opportunities.

Regional cities in early-stage recovery, says Hometrack

In late March, the Hometrack Index report concluded that England’s regional cities are in an early-stage recovery phase. It reported that:

• Sales volumes in Liverpool and Manchester are up by more than 40% in three years.
• Manchester’s price growth is leading all cities at 8.8% in the last year.
• Prices in Birmingham, Leicester and Portsmouth increased by more than 7%.
• Liverpool’s property price growth was not far behind, at 6.8%
• However, London’s price growth has fallen to 5.6%.

Although the report predicted temporarily slower demand in the regional cities due to the impact of Brexit and economic uncertainty, its forecast continued upside in property prices and activity.

Liverpool – a buy-to-let paradise?

Recent news from Mistoria Estate Agents is evidence that Liverpool’s private rented sector is in the middle of a huge boom.  Demand for tenancies is up by almost 20% across the city. Property investors in this university city are seeing unprecedented demand from students, with almost seven tenants chasing every room in shared buy-to-let property. High-quality rental properties are also in high demand.

Here, rental yields are among the highest in the country, with average yields a third higher than the national average. Some property opportunities offer yields of 10% and more, with property highly affordable for investment.

Opportunities that our investors are seeking

High gross yield and high growth opportunities are exactly the types of investment our investor client base is searching for. These investors understand that UK property fundamentals remain strong, despite the recent political shambles. Pinpointing locations for profitable investment is what our investor clients expect of us. Working with developers providing the best quality off-plan property sales is how we achieve this.

Contact us today on + 44 (0)207 923 5680, and we’ll start developing our segmented investor client lists specifically for marketing your development in London and the regional cities.

Live with passion,

Brett Alegre-Wood

Increase off-market property sales with this unique marketing strategy

We’ve already met the property investors that will buy your development

Of all the approaches to off-market property sales, perhaps the most successful for fast completion and sales that stick to understand what it is that property investors want entirely. It is the property investor who has the ultimate word: value is in the eye of the beholder. The beholder (the investor) is the property developer’s target market.

If you can get inside the minds of investors and understand what it is they really want from their next property investment, you will have a game-changing piece of intellectual property. Building where an investor wants to buy, the type of property they want to buy, and when they want to buy will catapult your sales numbers.

The problem is that getting to know property investors intimately is a time-consuming process. They’re different from home buyers. With investors now accounting for an increasing share of the market, ignoring this lucrative sector could seriously damage your property development profits.

In this article, I’ll highlight the lengths to which Castlereach property consultants go when cultivating investor relations, and give a little insight to how we silently market pre-launch developments.

Connecting with property investors

There are several ways in which we first connect with investors in the UK and overseas. While referrals produce good numbers of new leads, we also find that offering online resources, news, research and education play its part. It is a marketing process in itself and helps to funnel those with a commitment to invest from a large pool of potential investors who are merely curious about property investment.

We’ve found that partnering with a third party property investment education company works remarkably well – it helps to protect our market integrity and further funnels high net worth property investors from other less affluent investors.

From this funnelling and referral process generates high volumes of warm leads. It is now that our property consultants start to connect with individual investors, moving them from warm to red-hot.

Gaining investor insight

When we meet with property investors for the first time, our aim is to get to understand them and the lifestyle they want to create. We find out what is important to them, and what their investment goals are. Do they want income or capital growth? What is their investment timeframe? How do they plan to manage the properties?

We’ll also ask about their financing plans (whether they plan to invest with a buy-to-let mortgage, for example) and establish their tax position. We’ll enquire about any absolute ‘no-nos’ and help them to discover the potential for market-beating profits when buying in the best places to invest in property UK.

The first meeting is in-depth, and helps us to do two things:

• Build a complete picture of a new investor client
• Create mutual trust

Why investors trust us

Property investment is a large commitment for any individual, no matter their personal wealth. It’s imperative that an investor trusts us and believes in our abilities to source the best property from the best property developers. It is especially so in the area of off-market sales at the earliest stages, when there are no properties or show homes to be viewed.

We’re fortunate that we can point to an enviable track record: thousands of properties sold with a value more than £1 billion.

When we meet investors at seminars, they can network with other property investors who have used our process and benefited from our market connections and comprehensive research. Most of our property investor clients become serial investors through Castlereach. This face-to-face recognition and testimony are hard (if not impossible) to beat.

Our property investor clients are offered help and support at every stage of the buying process. A sales progression team is put in place, with the investor benefiting from a dedicated progression manager. We offer them the further support and guidance of independent mortgage brokers, solicitors, and accountants – specialist advisors that they would otherwise have to find themselves.

There isn’t a single factor that engenders the level of trust that property investors have in Castlereach – it is the whole multifaceted approach we take to sourcing, nurturing, and supporting investors in their quest for exceptional property investment opportunities.

How our investor insight benefits your off-market property sales

The insight we have to our individual property investors enables us to segment them for maximum marketing effectiveness. If your development is near a Crossrail station, we’ll know the names of investors who have expressed a desire to buy in such a location. If that development is targeted towards professionals with a young family, we can drill down to investors who have these as their ideal buy-to-let tenants.

The point is this: our property consultants already know the investors who are going to buy your development. It is why we can come in, conduct our due diligence, and match your properties with investors who are ready to move.

We’ll be able to buy out a portion of your development at the earliest stage and sell off-market to long-term investors who are committed to completion within your schedule. You’ll have the early cash flow you need, and certainty of the sales at subsequent stages that will allow you to complete your new build development in your budgeted cost and timeframe. Your profits will be maximised.

Comprehensive off-market marketing

Even given our knowledge of your development and the investors who are most likely to buy it, unless we market effectively there would be no sales of your off-market property. Like I said earlier, the trust our investor clients have in us is engendered by our entire multifaceted approach – our marketing efforts are part of this.

We include a host of influential information when marketing your development to our property investor clients. Working with you we’ll include floor plans, technical specs and price lists, as well as:

• Contracts of sale
• Estimated costs and stamp duty (if applicable)
• Sales information such as milestone payments and completion dates
• Rental appraisals
• Locational research

Our marketing package provides compelling and influential investment analysis. Our property consultants are fully versed about the investment opportunity, the research that is the motivation for investment, and the numbers that underpin potential investment profits and long-term income.

Fast and robust off-market property sales

Our closeness to property investor clients and our deep understanding of the property market and your development create a powerful combination for ratcheting up both the volume and pace of off-market sales of your property development.

The marketing of your development has already started. In fact, it began when we first met our investor clients who will buy your development – and that was before your development even hit the drawing board.

Contact us today on  + 44 207 923 5680, and we’ll start developing our segmented investor client lists specifically for marketing your new build development.

Live with passion and fun,

Brett

Property developer? Here’s how to pump up your development profits

Property developer? Cut your costs, improve finances, pump profits and build quicker

We’re often asked how we manage to achieve the results we do for a property developer and investors. Higher profits for property developers and investors is an equation that some find difficult to fathom. Using our unique approach and targeted marketing, we’ve found that new build development sales and investment are not a zero-sum game – it is possible to build in benefits for all.

Here, you’ll learn about our approach and how it helps both property developers and investors to increase their profits.

Developing a targeted and smart marketing strategy

Before our property consultants approach our UK and overseas investor client base, our team will have conducted the in-depth research for which we are renowned. We’ll have done our homework on your new build development, its location, planned infrastructure, and local authority support for business and employment. By the time we market your property to investors, the message is clear and straightforward:

“It’s a great and exclusive investment opportunity, in a prime location which benefits from the factors that promote exceptional long-term capital growth and rental income potential.”

What investors get when buying a property developer’s off-plan property Castlereach

We’ve been helping property developers reach high net worth investors for many years. Our track record is evidence that we work with the best developers in the UK and source property in the best places to invest in property UK. While this is great news for investors, on its own it’s not enough to compel them to invest.

Our approach creates its market.

Because of the extensive research that we undertake, when a Castlereach property consultant approaches an investor, the investor knows it’s a call that must be taken:

• They know that what we’re about to offer them is an exclusive off-plan property opportunity to invest in great property.
• We understand each client’s needs and objectives.
• We keep in touch with them to remain onboard with their changing circumstances.
• The property investment opportunities that an investor receives from us are always in sync with the investor’s financial ability and investment objectives.

It is a powerful combination that informs our marketing process. It’s the smart way to market your development. It’s less work for our property consultants, who spend their time more productively. No cold calling. No blanket marketing. Instead, Castlereach property consultants have meaningful conversations with investors that are interested in buying fantastic property in prime locations for long-term gain.

What property developers get when selling off-plan property through Castlereach

Because we are so in tune with what investors want from a property investment, we provide several key advantages to the property developers with whom we partner.

For a start, our process of identifying developments that are viable for investment is, in a great part, informed by the needs of our investor database. Knowing the type of property that these investors want and their objectives for it means that we can make a decision very quickly.

We are also able to tailor our bulk purchase to your needs. While we are often able to pre-purchase an entire development, we’re also flexible enough to make smaller-scale commitments. For the property developer, the risk of a single purchasing commitment falling through and crushing the whole development is eliminated.

The speed and flexibility with which we operate also pump cash into your development when it is needed. You can clear debt faster and finance the development more easily. Your reputation and profit margins are maintained, as you complete developments within time and budget. This greater build efficiency enables you to move to the next project more quickly. (Of course, this has the added benefit of adding new build stock to the UK market.)

Each purchase is effectively underwritten, and this provides certainty of sales and cash flow. When we commit to a development, the investors we sell to are committed to proceeding on the schedule provided. Our commitment to the development instils confidence in the investor’s mindset. We walk them through the potential and the numbers, and our due diligence process ensures that developers benefit from only the most committed purchasers.

All property developers want lower costs and faster sales

Without the need to pay sales agents and expensive show homes before beginning the sales process, a property developer’s marketing and sales costs are slashed. Together with our scalability and speed of execution, this enables the developer to offer a discount that further enthuses property investors, while the developer makes healthy margins.

Our position and strength is a pivot that creates a mutually beneficial partnership between the developer, Castlereach, and property investors in the UK and overseas.

All this and more for property developers…

In summary, when you work with Castlereach property developers enjoy the experience as well as:

• A professional and streamlined marketing approach that sells out your development fast
• A sales and marketing process that meets your financial and time-based objectives
• Reduced costs as expensive sales agents and marketing processes are eliminated
• The elimination of expensive commissions paid to sales agents
• Decreased development turnaround time
• More effective financing options
• Peace of mind as pre-sales provide certainty of cash flow and deposits provide early-stage cash injection

When you work with Castlereach, you break ground quicker and with greater certainty. Pre-sales will also provide other financing options with greater confidence.

Contact us today on  + 44 207 923 5680 and discover how we are also able to help you with your marketing strategy and sales structuring to maximise your profits. You’ll soon discover why developers with whom we’ve worked look forward to partnering on new developments.

Live with Passion,

Brett Alegre-Wood

Off-Plan Property Sales – How property developers maximise profits

Fast and flexible Off-Plan property sales, well in advance

In my last off-plan property sales blog, I examined why whole of development off-plan property sales could be damaging to a property developer’s wealth. A more profitable option for many UK developers might be to use a more flexible sales strategy. When you work with us, you gain access to our diverse and geographically dispersed property investor database. These investors are actively looking for the best UK property investment opportunities. We do all the legwork for them, sourcing the best off-plan property from the best property developers.

Here, I’ll outline the benefits of working with Castlereach, and how doing so could help you smash your 2017 off-plan property sales targets.

Fast and Flexible, early off-plan property sales

When we work with an off-plan property developer, our full team swings into action. We’ll undertake the research that our investors in the UK and overseas require to make their buying decisions. We can commit to a deal within days. You’ll have the early stage commitment to off-plan property sales that gives confidence to your funders, and generates momentum behind your development and creates traction for your sales team (if you have one).

It also reduces the risk associated with your development. You’ll benefit from an effective amount of finance at a better margin.

Why chose individual off plan property investors

Selling to a single institutional investor can be a high-risk strategy. When you complete forward sales with Castlereach, you get the best of both worlds: a bulk sale with the advantage of committed individual investors. It reduces risk further, by removing the potential of losing the entire sale.

We also get to know our investor clients before recommending off-plan property investments to meet their goals. Our intimate understanding of their needs, objectives, and financial aims informs our confidence when selecting developments in which to invest. We know that they are long-term investors who will want to complete their purchases.

Benefit from an extended geographic reach

If there is one thing that Brexit taught property developers, it is that access to a global audience is imperative. We bring this to the table. No matter what the confidence levels among UK property investors, we’ve found that foreign investors have not lost faith in the UK property market. With the fall in the pound since the EU Referendum, it hasn’t surprised us that interest from foreign investors in UK property investment has increased so strongly.

Work with us and you’ll find that we have access to investors in the key overseas markets, and property consultants with the experience that makes a difference to all investment conversations. Our property investors are located across most of the world, including:

• The UK
• Singapore
• Hong Kong
• India
• Malaysia
• Abu Dhabi
• Australia
• Saudi Arabia
• The EU

Exclusive offering to specific property investors

We simply don’t blanket market to our investors. We know the parameters that our investors want on an individual basis. We are aware of their requirements for yield, cost, returns, and location. Our marketing capabilities are second-to-none. We’ll take your off-plan property and float it without a splash during our off-market sales process. You get your development sold to long-term investors with minimum fuss, and no disruption to your sales strategy at later stages of the build process. In fact, we like it when property developers are selling at the same time as us. It helps you maximise both sales and profits.

With a high level of early stage sales, you’ll find that investors entering later will be more confident in their buying decisions. This will smooth your job of promoting to the UK market at subsequent stages of the build.

We keep things simple for property developers

We work with our property investors on a one-to-one basis and throughout the investment process. We’ll guide the investor with comprehensive research and a sales progression policy that is second-to-none. The investor benefits from a dedicated property consultant: a known and reliable single point of contact for all communication. This is vital, especially during long off-plan property sales processes which can take up to 18 months. We act as a single pivot point and liaison for every sale, ensuring the investors progress through to completion, removing a whole ream of tasks from your workload and doubt from your mind.

A strong track record backed by experience

Our team of property consultants benefit from more than 50 years of experience. You’ll find their passion and flare for property investment is infectious. These qualities have helped us build a track record that speaks for itself:

• More than £800 million of property acquired
• Over 3,800 units acquired
• Value of individual properties acquired from £65,000 to more than £1 million
• Worked with more than 100 property developers
• More than 40 developments with 20+ units acquired

Working closely with property investors

We work closely with investors before, during and after your units are sold. We take on the role of personal property consultants, building trust and respect as we explore goals and ambitions together. We make it our job to understand each investor and provide the property knowledge and expertise to inform their investment decisions throughout the process of building a portfolio.

We also lead investment seminars around the world, with an educational focus and:

• Presenting up-to-date research
• Providing second-to-none local knowledge
• Offering networking opportunities
• Providing help in the investment process
• Providing a gateway to the UK property investment

Contact us today on + 44 207 923 5680. Our property consultants will be pleased to discuss how the Castlereach advantage could benefit your early stage off-plan property sales. You’ll discover how other developers have used our experience and off-market strategic sales to help their promotional efforts, as those sales help to promote confidence of local investors and encourage increased funding possibilities.

Live with passion and fun,

Brett

UK property developers can be terrified by Institutional investors

Whole development sales threaten net development profit for UK property developers

Private Rented Sector schemes are growing in their popularity as a sales strategy for UK property developers, especially in key central locations near to key transport links. It may be tempting for you to consider a forward purchase of your entire development. Your budget can be set, margins calculated, and profit fixed in advance. But working with a PRS scheme or single institutional investor also has a high degree of risk for UK property developers.

Here, I look at some of those risks – a conversation that institutional backers of PRS schemes will probably never have with UK property developers.

Property investors follow the money

The government backed PRS scheme has taken an incredibly long time to move out of neutral and into first gear. First announced in 2012, after two years no company had come forward to take up the governmental guarantee backing property investors. The problem was those guarantees didn’t cover the period of construction. Investors backing schemes were essentially left on the hook for any shortfalls or cost overruns.

On top of this obstacle, the recovery in the housing market turned the profit switch from renting to selling. In a rising market, it becomes easier to sell at premium prices. Profit margins increase. From a purely business point of view, building to sell makes more sense (especially in a country where home ownership is so embedded in culture).

PRS could limit the scope of investment

When UK property developers sell a development as a PRS scheme, the scope of potential investors reduces. You’re limiting your options to only the big institutional investors with an appetite for PRS. Limit demand and you limit competition. Limit competition and you limit your upside and price potential.

Remember, the institution needs to maintain its margins too. They’ll have their investors and backers to whom they must justify their investment on price and profit margin. In fact, you’re further away from the actual investor.

You’re cutting out the property investors who are buying for capital gain, you turn your back on smaller institutions who may want to invest but on a smaller scale, and you wave away smaller scale landlords who might not drive such a hard bargain on your selling price.

Property investment is a business, not a charity

PRS schemes are seen as ‘charitable’ by some landlords – in October 2014, Keith Exford, CEO of 60,000 home landlord Affinity Sutton told Inside Housing, “We remain unconvinced that [PRS] is a worthwhile activity for us. We don’t believe that private renting is a charitable activity. Therefore, it is a commercial one, and we don’t view the returns on PRS as sufficient. Why would we want to take the profit slowly? The only reason we want the profit is to build more affordable homes.”

Investing in a property for capital gain is a strategy that is used by property investors as their property portfolios grow. The money they make on sales is reinvested on rental properties. A lot of larger landlords and investors don’t want to be tied into a rent-only development, and so simply won’t consider a PRS scheme investment.

Developer margins get squeezed on PRS schemes

If big landlords don’t know how to make the numbers add up, there’s only one way they’re going to get a profitable deal – and that’s by squeezing the developer on price. Supermarkets love their ‘buy-one-get-one-free-deals’, but does the same sales strategy make sense for UK property developers?

Local authority partnerships are needed, but challenging

Developer landlords and specialist PRS companies find that PRS schemes can be difficult to justify. One such company, PlaceFirst, told Inside Housing that it sets its target at households earning £25,000. With the assumption that the family has around £480 to spend on rent, PlaceFirst’s requirement for a yield of 6% means that it only has about £75,000 to spend on building the home.

To make such development economically viable, partnerships with local authorities have to be created – and they can be notoriously difficult to cultivate, grow, and maintain (especially in the current uncertain political climate).

UK Property developers risk: The backer might pull out

PRS funds are a huge business, but they tend to be higher risk. The agreements and investment terms have to be negotiated, agreed, revised, and reviewed. The funds are backed by institutional money – which gives them their gravitas.

There is often a multi-level sigh-off process, moving through to board level. At each level of review, investment agreements can become increasingly complex and bogged down in a legal quagmire. It extends the length of time to get a development moving, negatively impacting UK property developers.

It’s not uncommon for such agreements to fall over at the last hurdle. If this happens, the whole process of finding a backer and getting sign-off has to restart.

An example of this risk is Kampus in Manchester. In 2014, Capital & Centric and Henry Boot Developments bought the Aytoun Street Campus site, near Piccadilly Station. UK fund manager, Lothbury Investment Management agreed to fund the scheme as a £200 million PRS. That deal began its due diligence process, and after nearly two years it fell through. The developer had to look for a new financial backer. American company Ares Management came to the rescue and signed the new agreement in February 2016. The Kampus development is now getting off the ground, though at what cost to the developer remains to be seen.

How can UK property developers still forward sell projects?

Here at Castlereach, we take a different approach. Our decision making is fast, flexible and focussed.

Our commitment to a deal can be made within days. By the time UK property developers have negotiated with a PRS fund, we could have completed. You’ll have the initial funding you need, without the expensive loss of time. Also, we don’t have to buy the whole development. Many of our investments are made on a forward purchase of 25% to 50% of a development. For UK property developers, this:

• Creates rapid momentum for their development
• Underpins the development, providing increased confidence in the scheme to the developer’s funder
• Allows retention of a percentage of the scheme to sell later at a higher price

UK property developers with whom we’ve worked have found our approach works well for them, helping to increase profits and reduce funding costs. We work with huge and small UK property developers, all for very similar reasons.

By holding some property back from the early forward sale, you’ll benefit from selling nearer to completion. You’ll retain the benefit of capital uplift through the build cycle – helping UK property developers realise higher overall returns on the scheme than if you had forward sold the entire scheme too early.

Contact us today on + 44 207 923 5680, and we’ll be happy to discuss our forward buying process and how it could benefit your development.

Keep in touch,

Martin Sadler

How to smash your 2017 off-plan property sales targets

Increase off plan property sales and value in a challenging market

With recent news confirming that new housing in the UK has topped 200,000 and planning permissions are running at 275,000 a year, next year could be a tough year for your off-plan property sales.

In London, the shenanigans surrounding Brexit continue to haunt the market. While the number of new builds appears to be curtailed in the capital, so too is the number of transactions. Taken in combination, these factors should help to keep prices from falling. Indeed, recent figures released by estate agent Haart shows that London property price growth has increased to 7.6% over the last year, while demand has fallen by more than a third.

Across the rest of the UK, a similar pattern is starting to emerge, though while demand has fallen slightly, the number of new build properties coming to the market is increasing.

The secret for property developers to increase off-plan sales is having a good, consistent sales strategy that adapts to make sure your new build properties stand out from the crowd. Having discussed a sales strategy to grow your off-plan sales in 2017 in my last article, in this article I want to look at how to make your off-plan and new build developments highly sellable – and then get them sold.

Highlight your unique selling point (USP)

One of the problems that today’s home buyers voice is that one development is very much like another: the same layout; the same property dimensions; the same fixtures, fittings and white goods. When faced with such a ‘non-choice’, the buyer usually goes with the best value option.

Your USP helps to command premium prices in the face of stiff competition. We’ll be able to highlight these to investors from the UK and overseas, providing evidence that supports the USP as an exceptional buy-to-let investment opportunity.

Distinct style and design features that make properties more sellable include:

• Extra and innovative storage space, particularly in kitchens and bedrooms
• Convenience items – think outside the box, and include things like bin shoots, remote control lighting and heating, etc.
• Rooms that benefit from a lot of natural light
• Open-plan living space
• Green features

Add a touch of luxury

There are plenty of design and interior features that can be added to increase the ‘feel’ of a new build. People love luxury features – a “hero” component they can boast about.  A little touch of luxury sells to both home buyers and renters. Don’t underestimate the potential of luxury to turn on property investors who want to benefit from premium rental prices.

Common areas in apartment blocks: swimming pools, gyms, and rooftop gardens are all luxury features that help off-plan property sales. Within an apartment or house, consider a library or study, top-of-the-range appliances, smart heating and lighting, etc.

Consider price and design

It’s hard to sell an off-plan property as a bargain. It is, after all, effectively no more than a concept − a box of air that is captured in artist’s impression and a floor plan.

When we recommend off-plan properties to investors, we discuss the local area, its economy, and property fundamentals – shops, schools, transport links, major employers and major investment. We’ll also talk about the property itself.

A design including luxury features provides great talking and selling points, but as a developer, you should also pay attention to floor space layout – long halls reduce living space, while cleverly designed storage increases it. Available living space increases usable space and value which sells properties.

For off-plan properties, size matters

Some developers seek to maximise profits by maximising the number of units they build on a site. They’ll go for 50 one-bedroom apartments rather than 25 two-bedroom apartments. But consider this: those 50 one-bedroom departments need 50 kitchens, 50 bathrooms, and 50 sets of white goods. That’s a lot more expense in kitting out a block of one-bedroom apartments. And a lot more units to sell too.

Two-bedroom apartments garner more investor interest, too. They’re easier to find tenants for and command a higher rent.

When you’re planning a development, think about size long and hard – if you’re aiming at the student market, then one-bedroom places may be the way to go. But if you want to generate maximum interest from the UK and overseas investors, then size matters.

To park or not to park?

There’s a move towards zero parking spaces in London. Millennials are more likely to use public transport (especially with the Night Tube now providing 24-hour travel options and property investment opportunities for investors). Outside London, parking spaces are more important.

Consider target markets, location and local transport links, and then decide on whether to offer parking for all, a limited number of spaces, or none at all. The extra space freed to build extra apartments (or enhance the size and design of those planned) may pay dividends, but if it makes your off-plan properties harder to sell then it could be highly detrimental to sales (and profit).

Make your new build properties energy conscious

Traditionally, energy-conscious homes have been more attractive to home buyers than investors. We’re beginning to see this dynamic changing. As utility bills take up a larger slice of household expenses, renters are getting energy conscious. Energy-efficient homes sell more easily to tenants and command higher rental prices.

Do your research and provide it to investors

One of the things we do here at Castlereach is research property investment opportunities and relay that investment to investors. We make sure our investors know why your development is an ideal property investment opportunity and the property fundamentals that off-plan purchases will benefit from now and beyond completion.

The developer’s research will highlight why the apartments are in demand locally. Look at the local market, the demographics, the local employers and the population that make up the average homeowner or tenant. Investors want to buy off plan properties that benefit from natural demand, and not be blighted by being the wrong size in the wrong location.

UK off-plan property sales still attractive for investors

People in the UK may be reticent about buying homes at the moment (perhaps because of the economic uncertainty caused by Brexit), but property investors are increasing their activity. It is especially true of overseas investors. Recently, Skipton International announced an 80% increase in mortgage applications from British expats between August and November. That growth in interest mirrors our experience at Castlereach.

Overseas investors are benefitting from the slide in the pound. They haven’t been made nervous by the thought of the UK outside the EU. The demand for homes looks set to continue to outweigh the supply.

Find an edge to push your off-plan property sales through the roof

When looking for the edge that will help drive off-plan property sales, finding your USP and designing properties that appeal to buy-to-let investors will be a key theme in 2017. So, too, will your ability to attract investors from the UK and overseas.

While the fundamentals that make new build developments an attractive investment are the same for investors from the UK and overseas, how off-plan properties are marketed to different cultures requires individual approach and evolved strategies. That’s where our property consultants come into their own – we have huge reach within high net worth investment communities as well as the experience and strategy to sell your off-plan property, off market within agreed timescales.

Contact us today on + 44 207 923 5680, and we’ll be happy to discuss the help and expertise we can offer you as we link the best developers with active investors in the UK and overseas.

Live with passion and fun,

Brett

Your off-plan property sales strategy for 2017 and beyond

An off-plan property sales strategy to increase sales

We’ve helped property developers sell over £800m of off-plan property to an investor base from around the world with a substantial number going to UK based investors. We’ve held property investment seminars in six countries, and sold off plan property for over a hundred property developers and several hundred schemes.

Helping property developers get new build developments financed and off the ground we offer property investors off-market and exclusive investment opportunities. Investors from the UK and overseas understand that we work with great developers, with the properties we source benefit from great property fundamentals in highly researched and specific areas.

We can’t and won’t stand still, just as property developers continually evolve and change practices, we are continually growing our investor client base, innovating our off-plan marketing strategies, and forward-planning sales strategies. Here I want to give you a peek into just some of the plans we have to increase your off-market, off-plan sales in 2017.

Review your investor profile

Our clients are UK and overseas property investors who understand property investment. They know that, despite negativity surrounding Brexit, the UK offers a stable environment for long-term investment. Our overseas investors, in particular, have not been surprised to see that post-Brexit London off-plan development sales are holding.

We understand the profile of most active investors changes over time. Regulations, market events, economic cycles and foriegn exchange rates have separate and combined effects. We’re continually researching, analysing and examining who the most active investors are. Our team use this information and insights to determine marketing strategies and focus on developing our investor database.

Understand why the investor buys your property

Our property consultants spend a lot of time getting to know your development, the area, the story behind it and the particular qualities it has as an off-plan property investment opportunity. We spend a lot of time understanding our investors’ objectives, their aims, and the journey they take to get to making the investment.

We take this journey seriously, mapping it out and understanding the conversations we need to have to move from one stage to the next.

Again, this is something we constantly review – and backwards! We start at the end point (exchange of contracts) and move back through each step needed. We iterate, innovate, and evolve off plan property sales strategies to develop a fully rounded sales conversation. We get to understand the strings we need to pull and why, the objections we’ll come across and the true motivations property investors have.

Something we’ve know is that there is no ‘one size fits all’ approach possible – with different developments, completion times and locations – when you consider property investors are from across the UK or overseas, each has their own motivations, cultures and customs which need to be accounted for.

Property investors prefer different contact methods

We communicate with our investors in a variety of ways, including:

• Seminars and events
• Content or inbound marketing
• Email outreach and campaigns
• Promotion and advertising
• Telephone or online chat / instant messaging
• Face to face meetings and catch ups

Different investors prefer their property consultant to use different contact methods. We’re careful about the type of contact we use at each stage. Off-market sales requires discretion and a lot of personal contact and time is invested between the property consultant and client – otherwise, they cease to be off-market.

Our USP or unique selling point

Investors buy through Castlereach because we offer them something different – off-market and off plan property investment opportunities. Our property consultants are personable, dedicated, and highly experienced. With more than five decades of experience between them, they’ve invested in off plan property themselves and they’re international.

We get close to property developers, understand the local market and have some of the best research in the property investment industry available. Our investors benefit from all of this. We understand that our customers know what they want, so we ask them. We find out why they deal with us, which helps us to grow our investor database. By offering what investors want and investment properties they can’t get elsewhere, we have incredible understanding and reach. That how and why we help property developers with their off-plan property sales.

Review of website and marketing materials

We’ll make sure that our website, landing pages, area guides and marketing materials speak to investors in the UK and overseas. We’ll review them in line with investor profiles, changing markets, and evolving technology.

Creating a brand that is synonymous with property investment, consistent throughout, but appropriate for a range of investor personas requires a 360-degree review – website, social media, print, email, etc. We’re continually innovating new ways for all our channels to be effective and materials to be informative, attractive and educational, as well as promotional.

Our Off Plan Property Sales Process

We are continually innovating and evolving all aspects of our sales and marketing. We encourage sharing of best practice, writing engaging materials and introducing new processes into our sales strategies. From initial contact (often by referral) we nurture prospects as we discover what their unique challenges and objectives are. Throughout, we’re building a profile for the property investor that allows us to target specific investors with specific off-plan property investment opportunities and developments. This sales funnel filters down to commitment and almost-certain sales targets for your off-market properties.

Tracking progress, evolving sales strategy

We’ve some stretch sales targets for next year. Individual property consultants here are responsible for hitting them. Every week, we review activity and progress as individuals and as a team. At team meetings we’ll be discussing successes and failures, learning from mistakes, ensuring that everything we do is aligned to meet our objectives: to sell more of your off-plan property off-market.

What are you doing to increase your off-plan property sales in 2017?

When it comes to working with individual developers, we understand all developments and each developer’s objectives are individual. Unique. That’s why we build flexibility into all of our sales and marketing strategies, to allow for flexibility when working with different developers so we dovetail with their expectations not ours.

We’ll work with you to identify the strengths and weaknesses of your development, and use this knowledge to identify investors with the highest and most appropriate need for your off-plan property opportunities. Collaborating closely, we’ll target a list of interested investors without going public. We don’t advertise and we leave all your current sales channels unaffected. You’ll get the early-stage investment you need, while our investors benefit from their investment in great property, in strong locations with all the information they need to hold on to their property for years to come.

Contact us today on + 44 207 923 5680, connect with me on LinkedIn. We will outline how we dovetail with your existing marketing and sales strategies and importantly, how we can help sell your off plan units, fast.

Live with Passion,

Brett Alegre-Wood