The Challenges facing property investors and new build property developers
Understanding needs of new build property for sale
New analysis from Yorkshire Building Society suggests that the undersupply of new home developments might be worse than previously feared. The UK now needs more than one million new homes. For property investors and new build property developers, this is a reality that promises profits and security though it’s not without challenges.
Here, I look at some of these challenges faced by new build property investors and developers with new build property for sale.
It can be hard for property developers to work with councils
For many new build property developers, working with local councils is challenging. One major problem is that councils don’t necessarily have the control they need to allow sites to be offered to developers. The best sites always come online eventually, but if you wait for this to happen, you could miss other, more profitable opportunities in the meantime.
Central government is beginning to devolve funding to local authorities. Manchester, Liverpool, and the West Midlands are cases in point. These authorities now have billions that were previously controlled by central government. As this devolution increases, so will the ability of councils to control housing funding. They’ll be given the freedom to develop public land that is surplus to requirement. This should help new build property developers to purchase the best land to develop more quickly. When this happens, there are even better opportunities for property investors searching for new build property for sale.
To succeed, new build property needs infrastructure
The millennial generation is more mobile, more agile in their work, and returning to renting as a lifestyle option. When you rent, you have the ability to move jobs. You’re not tied to a single location because of home ownership. Millennials are also less inclined to be car owners. They are more prepared to use public transport.
Property investors are therefore more interested in new build property for sale that offers lifestyle benefits. Apart from modern appliances, secure buildings and WiFi, the real issues centre on infrastructure:
- Does the new build property for sale benefit from being close to a transport hub?
- Is it easy to travel to and from work? To go on holiday?
- Are amenities close, such as retail and leisure facilities, restaurants and nightlife?
These are issues that will probably make or break for new build property developers, too.
The financing issue for property investors and new build property developers
Since the Global Financial Crisis, financing has become more difficult for new build developers and property investors.
As a developer, access to a bank of high net worth investors is essential. You’ll be able to take advantage of the desire for investment in new build property for sale. Off-plan sales should increase cash flow and make financing easier.
As a high net worth property investor, you’ll have the funds to benefit from the very best offers from new build property developers.
Trust nd confidence is essential for both parties
Trust is a key principle in the business of off-plan sales of new build properties.
As a property investor, you’ll want to know that you are dealing with a reputable new build property developer. You will expect to see a track record of successful completions and be kept informed of progress.
As a property developer, you’ll want to know your early off plan property investors are genuine, long-term investors. You’ll benefit from payments made when they are due, on schedule, without fuss.
Castlereach squares this circle. We have a large and continually growing bank of investors from around the world, actively searching for quality new build developers to buy from. For developers, our sales process is under the radar and off-market, not interfering with their own sales channels.
As a property investor, you’ll benefit from our expertise in working with the best new build property developers and our research capabilities.
As a property developer, you’ll benefit from our extensive reach and unique client contacts.
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 the best investors.