Tag Archives for " new build property "

Foreign property investors demand new build property post-Brexit

New home developments offer extra value

Brexit has been one of, if not the main focal point of recent news. Some market observers predicted a collapse in new build property prices. Here at Castlereach, we’ve witnessed an increase in interest in new home developments, especially from our large numbers of foreign property investors.

Here, I’ll explain what property investors are saying, and why so many believe the current environment is an strong “buy” opportunity.

New home developments and massive regeneration

There has been − and continues to be − massive regeneration investment projects across the UK. These include modern transportation and infrastructure builds. Projects such as Crossrail in London and High Speed Two linking the South to the North will slash journey times. Business will become easier to conduct, and the economy is expected to react positively and strengthen over time.

New build property developed near to such large scale new infrastructure benefits from easier travel and the influx of people wanting to take advantage of better transport links and more affordable house prices.

A strong economy underpins new home developments

Though there has been a shudder caused by the unexpected Brexit vote, our economy has good underlying strength. In a 2015 World Bank Survey, the UK was ranked as the sixth most business friendly country. The UK is widely recognised as being a good place to do business and start a business, with more than one in eight immigrants become entrepreneurs.

The Bank of England announced it could pump an extra £250 billion into the financial system, should it be needed. Post-Brexit, the Chancellor of the Exchequer, said tax rises and cuts in public spending would not be necessary to support the economy. The pound lost some value in the foreign exchange markets, but UK exporters are expected to benefit and sell more to target markets abroad. It’s also not alone and the Euro has been under scrutiny too.

The UK economy is in good shape, and it’s unlikely that medium to long-term demand for new build property will decline significantly, if at all.

Underlying demand for property will remain strong

With a strong underlying economy and commitment to infrastructure projects, demand for homes is not likely to collapse anytime soon. It’s estimated that there is an annual shortfall in supply of nearly 200,000 new build properties every year. Even if immigration were curtailed tomorrow (which we doubt will happen – immigration is good for the economy), domestic demand continues to outstrip supply.

New home developments will continue to benefit from this supply/demand dynamic.

The drop in the pound’s value gives foreign investors a worthwhile discount

The fall in the value of the pound since the Brexit vote is good for our foreign property investors. They’re looking for long-term investments in a strong economy. Infrastructure, regeneration, and underlying domestic demand is seen as underpinning property values. The fall in the pound may well be a temporary phenomenon. The short-term negative sentiment is likely to unwind as the Brexit shock dissipates.

The pound’s weakness presented a window of opportunity for our foreign investor clients to buy at a sizeable perceived discount to market value. It’s ironic when you think about one of the main reasons for the vote was to protect ourselves from an influx of migrants.

The future is bright for UK property and investors

Our clients are optimistic about the future for the UK market and new home developments. We agree with them. There’s a lot to be optimistic about.

Our bank of high net worth property investors come from around the world. Take advantage of their bullishness on the UK’s new build property market, and connect with buyers from Singapore, Hong Kong, the Middle East, India, and Australia. Contact us today on +44 207 923 5680 , and we’ll be happy to discuss how we can help you execute your new build property sales strategy and shift units in volume.

Live with passion and fun,

Brett Alegre-Wood

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.

Speak soon,

Martin Sadler