Sample 1 - Blog #property developmentSample 1 - Blog #property developmenthttps://lololol.zohosites.com/thoughts/tag/property-developmentThu, 01 Aug 2024 22:29:41 -0700http://zoho.com/sites/<![CDATA[Property Developer Tips From Industry Experts]]>https://lololol.zohosites.com/thoughts/post/Property-Developer-Tips-From-Industry-Experts

10 Common Mistakes Made by New Property Developers

Property development is no small undertaking and requires careful research, planning and strategy. As with any investment, it carries a degree of risk that can be minimized by avoiding mistakes that are commonly made by new property developers.

In this article, we take a closer look at the key pitfalls to be aware of when targeting residential property development or house building. 

1. Not having a solid plan or strategy

One of the biggest mistakes new property developers make is not having a clear plan. This can result in rushed decisions, overpaying for land or making poor choices when it comes to choosing the right location. Without a solid plan, it’s easy to get caught up in the excitement of a project and make careless decisions that can end up costing you dearly.

Creating a plan for your development project doesn’t need to be complicated or time-consuming. But it is important to sit down and think through all the different aspects of your project before you get started. Here are a few tips to help you create a clear plan for your next development project.

Define your goals:

Before you can start planning your development project, you need to know what you want to achieve. Are you looking to create a mixed-use development with retail, residential and office space? Or are you planning to build a new residential subdivision? Knowing your goals from the outset will help you make better decisions throughout the planning process.

2. Overlooking the competition

When you’re planning a development, it’s important to be aware of the competition. What are they doing that you’re not? How can you make your development stand out from the crowd? Don’t be afraid to think outside the box and come up with unique selling points that will make your project more attractive to buyers or investors.

3. Failing to do your research or relying on free unqualified opinions

Another mistake that’s often made by new property developers is failing to do their research. This can involve not fully understanding the planning process, not investigating the local market or failing to get professional advice. Not doing your homework can lead to costly errors that could have been easily avoided.

The biggest issue here is not engaging the right professionals at the beginning such as 

    • Qualified quantity surveyors (QS) for accurate build cost estimates
    • Qualified surveyors for accurate land value costs and subsequent end gross development costs

Another problem is not having sufficient and reliable market data.

Research the market:

Once you know what you want to build, you need to research the market to see if there’s a demand for your development. This involves looking at population growth, demographics and other economic indicators. You also need to research the competition to see what else is being built in the area and what type of development is most likely to be successful.

4. Not having enough capital

Another common mistake made by many new property developers underestimate the amount of capital required to get a project off the ground. This can lead to financial problems further down the line, so it’s important to make sure you have a realistic understanding of the costs involved before you commit to anything.

What is particularly surprising is the under-estimation of many upfront costs that the developer has to fund before the development finance lenders, mezzanine finance lenders or professional equity providers will release their cash - the simple rule is that, developers funds always go into any project upfront and recovered from profits last.

Upfront costs (developer skin in the game) include:

    • Professional independent reports on project appraisal assumptions or business plan: quantity surveyor, land value survey including estimated gross development end value (GDV) etc
    • Solicitors fees for the developer and lending providers
    • Arrangement or commitment fees etc

Whilst some of the fees may be recovered/ refunded on successful land purchase etc a common misconception is not appreciating that the developer will have to pay for these upfront. Therefore, the need for working capital to cover such costs.


5. Biting off more than you can chew

Taking on too much too soon is a mistake that’s often made by new property developers. It’s important to start small and gradually build up your portfolio as you gain more experience. Trying to do too much too soon can lead to cash flow problems and put unnecessary strain on your resources.

6. Not having a exit strategy

Another mistake that’s often made by new property developers is failing to plan for the future. This can involve not having a clear exit strategy or not considering what you’ll do with a property once the development process is complete if the initial exit strategy fails due to unforeseen market events or other external factors. Without a plan, it’s easy to get stuck in a project and end up with a property that’s difficult to sell or let. Multiple possible exit options would give all stakeholders better peace of mind.

7. Not being prepared for the unexpected

There’s always a certain amount of risk involved in property development, and it’s important to be prepared for the unexpected. This can include things like unanticipated costs, planning problems or construction delays. By being mindful of the potential risks, you can help to minimise the impact of these issues if they do arise.

8. Failing to build a good team

As with any project, the success of a property development depends heavily on the team you put in place. This includes everything from choosing the right architect and builder to working with a reputable solicitor or mortgage broker. Without a good team, it’s much more difficult to deliver a successful development.

9. Not understanding your target market

Another mistake that’s often made by new property developers is failing to understand their target market. This can involve not research the local area or not having a clear idea of who your target audience is. If you don’t understand your target market, it’s much more difficult to create a development that will appeal to them.

10. Not being realistic

Finally, it’s important to be realistic about what you can achieve. This means being realistic about things like the timeframes involved, the costs involved and the potential returns you can expect. Trying to achieve unrealistic targets is a recipe for disaster and is something that should be avoided at all costs. 

Conclusion...
These are just a few of the mistakes that new property developers often make. By being aware of them, you can help to avoid making them yourself. Remember, it’s important to start small, build a good team, understand your target market and be realistic about what you can achieve. 

 GIC Capital provides hassle-free and flexible #developmentfinance solutions that can be tailored to suit your project needs. Get in touch with us today and let’s get started on making your dream project a reality! 🚀 #PropertyDevelopment #SmallBusiness #Funding

]]>Sat, 14 Jan 2023 00:00:00 -0800<![CDATA[Are You Making These Common Finance Mistakes?]]>https://lololol.zohosites.com/thoughts/post/Are-You-Making-These-Common-Finance-Mistakes

What You Should Know About Property Development Finance

Many property investors and housebuilders have heard a variety of myths about property investment and property development finance. It is important to separate fact from fiction and have a full understanding of the options available when heading into a property investment or development project.

In this article, we aim to break down the myths and misconceptions surrounding property investment and property development finance so that you can make the best decision for your business.

Myth #1: You need a huge deposit to get started

One of the most common myths about property investment and development is that you need a huge deposit to get started. This is simply not true. While a larger deposit will give you more negotiating power with lenders, there are a number of finance options available that will allow you to get started with a smaller deposit.

Myth #2: It's all about the interest rate

Another myth that is often heard is that the interest rate is the only thing that matters when it comes to property investment and development finance. While interest rates are important, they are not the only factor to consider. There are a number of other fees and charges that can apply, so it's important to compare the total cost of different finance options before making a decision.

Myth #3: You need to have perfect credit to get finance

Another common myth is that you need to have perfect credit to be approved for finance. While a good credit history will give you more negotiating power with lenders, there are a number of finance options available for people with less than perfect credit.

Myth #4: It's all about the market value

Another myth that is often heard is It's all about the market value Myth

While the market value of a property is an important factor to consider, it is not the only factor. If you are planning to renovate or develop the property, the end value of the property is also important to consider.

Myth #5: You need to use a bank

Another common myth is that you need to use a bank to finance your property investment or development project. This is simply not true. There are a number of other finance options available, including private lenders, Bridging Finance and development loans.

Myth #6: It's all about the location

While the location of a property is an important factor, it is not the only thing to consider. The condition of the property, the potential for growth in the area and the development potential are all important factors to consider.

So there you have it, the six most common myths about property investment and development finance. Remember, it's important to do your research and speak to a professional before making any decisions.
  

Myth #7: You need to be an experienced property investor or developer to get finance

Another common myth is that you need to be an experienced property investor or developer to be approved for finance. While experience will give you more negotiating power with lenders, there are a number of finance options available for people without any experience in the property market.

Myth #8: You can't get finance if you're self-employed

Another myth that is often heard is that you can't get finance if you're self-employed. While it may be more difficult to get finance if you're self-employed, there are a number of finance options available for people who are self-employed.

If you're thinking of investing in property, or starting a property development project, it's important to do your research and separate fact from fiction. There are a number of finance options available, so don't let the myths stop you from achieving your goals.

Myth #9: You need a large deposit

Another common myth is that you need a large deposit to get finance. While a larger deposit will give you more negotiating power with lenders, there are a number of finance options available for people with a smaller deposit.

Myth #10: You can't get finance if you have bad credit

Another myth that is often heard is that you can't get finance if you have bad credit. While it may be more difficult to get finance if you have bad credit, there are a number of finance options available for people with bad credit.


1️⃣If you’re a business owner looking for secure financing, now may be the best time to apply for a loan.💳 
2️⃣If you're a property developer thinking of investing, now could be an ideal time to review your funding requirements. 🏗 
3️⃣As a house builder or investor, you may be able to benefit from competitive refinancing packages on offer. 🏘 
4️⃣If you're looking for lender flexibility & creative solutions, GIC Capital has the answers! ✅ 
5️⃣Navigating the current economic climate can be tricky – we’ll be here every step

#GICCapital #propertyinvestment #propertydevelopment #finance #myths #realestate #moneysavingtips #financemyths #realestate #mortgage #debt #credit

]]>Tue, 10 Jan 2023 00:00:03 -0800<![CDATA[House Design & Construction]]>https://lololol.zohosites.com/thoughts/post/House-Design-Construction

House Design & Building

The design of a house is key to the whole process and it is important that, as a house-builder, you are aware of the various stages involved and the issues you will need to consider.


These issues may include:

Understanding what you can control and what you can't and deciding how much control you want to exert.

Building regulations – how are they applied, which ones are more relevant in different circumstances and what advice you can get from your architect.

Sustainable homes – there are various systems that can be incorporated for improved performance, but not all homes will be suitable for all of them.

Maintaining your margins – such as profit or return on investment targets.

The relationship between the house and its surroundings; this includes access, parking, orientation to sunlight and privacy issues.

Designing a house is an interactive process; the architects are not just "doing their own thing", but have a responsibility to discuss with you and consider your priorities.

Planning Permission

Planning permission is an important aspect of any construction project. It is essential to ensure that you have the necessary permissions in place before starting any work. The process of applying for planning permission can be complex, so it is important to seek professional advice if you are unsure about anything.

If you are considering making any changes to your property, it is always best to check with your local authority first. They will be able to tell you whether or not you need planning permission and can provide guidance on the process.

The relevant local council planning portal website is a good place to start if you need further information on planning permission and the application process.

Building Regulations

There are many different types of building regulations that exist in order to ensure the safety of both occupants and passers-by. Different countries have different Building Codes, which set out minimum standards for construction. In the United Kingdom, responsibility for enforcing Building Regulations lies with local councils, who will carry out checks during construction and issue a certificate of compliance once the building is complete.

Ensuring that a building meets all the relevant regulations can be a complex task, particularly if it is an older property. However, it is essential to ensure that any necessary work is carried out before occupancy, as this can help to avoid expensive repairs or even demolition further down the line. A professional surveyor or architect will be able to advise on whether a property meets all current regulations.

There are a number of key areas that must comply with Building Regulations in any structure:

- The foundations must be strong enough to support the weight of the building without cracking or sinking. - The walls and roof must be built using materials that are fire-resistant. - All windows and doors must be fitted with locks in order to protect occupants from intruders. - There must be adequate ventilation throughout the property in order to prevent dampness and mold growth. - Any stairs or ramps must be designed according to specific safety standards in order to prevent accidents

Choosing a designer/architect for your house-building project

When you are planning to have a house built, one of the most important decisions you will make is choosing the designer. The designer will be responsible for creating the plans that will be used to construct your home, so it is crucial that you choose someone who is experienced and whom you can trust. Here are some tips on how to select the right designer for your project:

1. Get recommendations from people you know. If someone you know has had a good experience with a particular designer, they will likely be able to give you a recommendation.

2. Do your research. Once you have some names of potential designers, take the time to look up their work online or in magazines/books. This will give you a better sense of their style and whether or not it aligns with what you are looking for.

3. Meet with them in person. Once you have narrowed down your choices, set up meetings with each of the designers on your list. This will give you an opportunity to get to know them better and see if they are someone who you would be comfortable working with closely over the course of several months.


Timber Frame Construction

Timber frame construction is a time-honored method of building that has been used for centuries. Though the techniques have evolved over time, the basic principles remain the same. A timber frame structure is built around a series of vertical and horizontal timbers, called posts and beams. These posts and beams are joined together using traditional methods such as mortise and tenon joints, or more modern methods such as steel fasteners or metal plates.

The use of timber framing allows for a much more open floor plan than other types of construction, as the load-bearing walls are removed and replaced by the structural timber frame. This provides greater flexibility when it comes to layout and design. In addition, timber frame buildings are very energy efficient due to their high thermal mass, which helps to keep the interior temperature stable year-round.

If you are considering building a new home or commercial building, timber frame construction is definitely worth considering. With its many benefits, it is no wonder this traditional method of construction is making a comeback in today’s market.

Insulated Concrete Form Construction

Insulated Concrete Form construction is a type of construction in which concrete walls are formed using molds made from insulated foam panels. These panels are then filled with concrete, resulting in a solid, energy-efficient wall.

ICF construction has many advantages over traditional construction methods. For one, it is much more energy-efficient, as the foam panels provide excellent insulation. This can save you money on your energy bills, as well as make your home more comfortable to live in. Additionally, ICF homes are extremely strong and durable, able to withstand high winds and earthquakes. And because the foam panels create a mold for the concrete, there is very little waste involved in the construction process.

If you're looking for a new home that is both green and safe, Insulated Concrete Form construction is a great option to consider.

Construction Project Management

Construction project management is the process of managing a construction project from start to finish. It includes all aspects of the project, from planning and design to construction and completion. Construction project managers are responsible for ensuring that the project is completed on time, within budget, and to the required specification.

There are many different types of construction projects, ranging from small residential renovations to large-scale commercial developments. Construction projects can be complex and expensive, so it is important to choose an experienced and reputable construction company to manage your project.

A good construction company will have a team of qualified professionals who can provide expert advice on all aspects of your project. They will work with you to develop a detailed plan and schedule, and will then oversee all aspects of the construction process. Once your project is complete, they will conduct a final inspection to ensure that everything meets your standards.  

Raising Construction Finance

Construction finance is the process of securing funding for the construction of a new building or other structure. There are many different sources of construction finance, including banks, insurance companies, private investors and government agencies. The most important factor in securing construction finance is finding a lender who is willing to provide the necessary funds.

The first step in raising construction finance is to create a business plan (commonly known as a detailed project appraisal). This plan should outline the proposed project, its budget and timeline, as well as the borrower's financial history and current situation. The business plan will be used by lenders to assess the risk involved in lending money for the project. It is important to make sure that the business plan is realistic and achievable, as lenders will not lend money if they believe that the project is unlikely to succeed.

Once the business plan has been created, it is time to start approaching potential lenders. It is important to remember that each lender has their own criteria for lending, so it may be necessary to approach several before finding one who is willing to provide funding. Once a lender has been found, it is important to negotiate terms that are favourable to both parties. If all goes well, construction financing can be secured and the project can begin.

Working with builders

If you are planning on having any building work done, it is important to choose a builder that you can trust. There are a few things that you can do to make sure that you select a reputable builder. Firstly, get recommendations from friends or family who have had building work done recently. Secondly, check online reviews and ratings to see what other people have said about the builders in your area. Finally, arrange to meet with several different builders before making your final decision.

When you have selected a builder, there are a few things that you need to do in order to make sure that the project goes smoothly. First of all, agree on a schedule of payments and get this in writing. You should also agree on a start date and an end date for the project, and make sure that this is included in the contract. It is also important to be clear about what exactly you want the builder to do; draw up a specification or list of works which can be used as a reference point during the build process. Finally, make sure that you keep in contact with the builder throughout the project so that you are aware of any changes or problems as they happen

Hiring Construction Sub-Contractors

There are many benefits to hiring sub-contractors in the construction industry. Perhaps the most obvious benefit is that it can save the construction company money. When a company hires its own employees, they are responsible for payroll taxes, workers' compensation insurance, and other employee-related expenses. These costs can add up, and hiring sub-contractors can help to reduce them.

In addition to saving money, hiring sub-contractors can also help to improve the quality of work. This is because sub-contractors are typically specialized in one particular area of construction work. As such, they tend to be more skilled and experienced than general laborers who may not have as much experience with the specific type of work that needs to be done.

Finally, another benefit of hiring sub-contractors is that it can help to ensure timely completion of construction projects. This is because sub- contractors typically work on a project until it is finished, rather than working for a set number of hours each day like employees do. This can help to avoid delays caused by employees taking time off or calling in sick.

Construction contracts

A construction contract is an agreement between two or more parties to carry out a construction project. The contract may be for the construction of a new building, the renovation of an existing structure, or the repair of a damaged one.

There are many different types of construction contracts, and each has its own advantages and disadvantages. The type of contract that is best for a particular project will depend on the nature of the project, the size and complexity of the work, and the budget.

Construction contracts can be divided into two main categories: lump-sum contracts and cost-plus contracts. Lump-sum contracts are fixed-price agreements in which the contractor agrees to complete all work for a certain amount of money. Cost-plus contracts are agreements in which the contractor is paid for all actual costs plus a specified fee (usually a percentage).

The choice of contract type should be made carefully, as it can have a significant impact on both the cost and schedule of a project. In general, lump-sum contracts tend to be used for simpler projects with well-defined scope and scope creep is less likely to occur. Cost-plus contracts are often used for more complex projects where there is more potential for change orders.

Running a construction site

There are a lot of moving parts to running a construction site. In addition to the actual construction workers, there are also office staff, safety personnel, and other support staff that keep things running smoothly. Construction sites can be very busy places, with a lot of heavy equipment and materials being moved around. It is important for the people in charge of running the site to have a good understanding of all the different aspects of the business, from construction methods to safety regulations.

As with any business, there are always potential risks associated with running a construction site. One of the most common risks is accidents happening among the workers. This is why it is so important for construction sites to have comprehensive safety protocols in place. Another risk is financial - if a project runs over budget or takes longer than expected to complete, it can put strain on the company's bottom line.

Despite the inherent risks involved, Running a construction site can be a very rewarding experience. Seeing a project come together from start to finish is an incredible feeling, and knowing that you played a role in making it happen can be even better. Getting to work with your hands and see tangible results at the end of each day is something that not many people get to experience in their jobs. If you're up for the challenge, Running a construction site might just be the perfect career for you!

Construction Insurance and Warranties

Construction insurance is essential for any property owner or developer to protect themselves against the financial loss that can come from damage or destruction to their property. Warranties are often included in construction contracts as a way to guard against defects in materials or workmanship, giving property owners and developers an extra layer of protection.

While construction insurance protects property owners and developers from some of the risks involved in construction, it is important to remember that this type of insurance does not cover everything. It is still possible for property owners and developers to experience losses even with this type of insurance in place, so it is important to be aware of all the risks involved in any construction project.

Construction Book-keeping

Every construction project, no matter how big or small, requires some level of book-keeping. This is necessary in order to stay organized and on track with the project schedule. There are many different ways to keep track of a construction project, but most often it is done through the use of software programs designed specifically for this purpose.

There are many different types of software programs that can be used for construction book-keeping. Some are designed to be used by contractors, while others are more user-friendly and can be used by anyone involved in the project. The important thing is to find a program that meets your specific needs and is easy to use.

Construction book-keeping is an essential part of any construction project. By keeping track of all aspects of the project, you can ensure that the project stays on schedule and within budget. With so many different software programs available, there is sure to be one that meets your needs and makes construction book-keeping easier than ever before!

]]>Sun, 15 May 2022 22:00:00 -0800<![CDATA[Alternative lenders enable the British housebuilding industry to flourish.]]>https://lololol.zohosites.com/thoughts/post/Alternative-lenders-enable-the-British-housebuilding-industry-to-flourish.

British housebuilders are turning to alternative lenders because they need funding.

There’s no denying that the UK’s housebuilding industry has become increasingly reliant on alternative lenders to fund its projects. Over the last two years, the amount of money supplied by the sector’s alternative lenders has grown by £3.7bn. This equates to 14% of all money lent for housebuilding in the UK during this period.

54% of SMEs stated that obtaining finance is the main reason for their home building project not being completed. Alternative finance is beginning to resolve this problem by offering small businesses access to the money they need in order to complete these projects.

The alternative finance provider industry is continuing to mature and develop in the UK. The traditional banking sector has faced criticism for its failure to serve SMEs in the property sector; there are upwards of 2 million small businesses in the UK, and up to 70% do not have access to finance.


Small businesses often face problems getting financing. They can’t get loans like big companies, and banks aren’t able to approve their small loan requests quickly. This is why alternative finance sources are so attractive to small businesses—they offer quick funding without all of the red -tape that comes with bank loans.


While it has made improvements, the Government may make several more changes to better support small building businesses.


The Housing Growth Partnership and other such schemes’ act as a dedicated initiatives that in some cases invest alongside smaller builders in new developments, providing money to support their businesses, helping get workers onto sites, and increasing housing supply.

These partnerships also establish a network of builders, including experienced developers, who will act as mentors and advisers to those looking to expand and grow their businesses.


Supporting small builders

In the last 25 years, the number of firms building between 1 and 100 units a year has fallen from over 12,000 to fewer than 3,000.

That’s why the government has placed housebuilding at the heart of its long-term economic plan, to get homes communities want to be built and create jobs in construction and related industries.


Click here to learn more about financing your business or to receive help and advice from us.

]]>Fri, 06 May 2022 22:30:02 -0800<![CDATA[Developer's Guide To Successful Property Development]]>https://lololol.zohosites.com/thoughts/post/Developer-s-Guide-To-Successful-Property-Development

Guide for successful property development

Here is a comprehensive guide to help you pave the road to success in house building. This guide covers every detail of your construction journey; from land purchase, construction and sales to marketing, communication and PR.

1. Purchasing land is one of the most important steps in house building. You need to make sure that the land is zoned for residential construction and that it has all the necessary utility hookups. Once you have found the perfect piece of land, you need to get financing in order to purchase it.

2. The construction phase of your project is where you will actually build your house. This process can be broken down into a few different parts: clearing the land, laying the foundation, framing the walls, and adding finishing touches like doors and windows. You will need to hire a contractor to help you with this part of the process unless you are experienced in construction yourself.

3. After your house is built, you will need to sell it in order to recoup your investment. This can be done through traditional methods like listing it with a real estate agent or by marketing it directly to potential buyers. You will also need to price your home competitively in order to attract buyers.

As you set out with your property development journey


Property development is the process of buying land or a property, and then building something on that land. This can be a residential, commercial or industrial building. Property development is different to real estate investing, which means you're buying properties in order to sell them later for a profit or long-term rental income as well as capital growth. Property development is more hands-on than investing — you're designing, building, and managing your own projects.

There are several key factors driving property prices in the UK and around the world.


Things like population growth, employment availability & opportunities, supplies of goods and services within a society, and possibly most importantly of all to where you live and what that place offers you can seriously impact the way property prices themselves change over time.

Population growth - how many people are coming and going?

The question of how many people are coming and going is a complex one. There are a variety of factors that contribute to population growth, including birth rates, death rates, immigration, and emigration.

Birth rates refer to the number of births per year per 1,000 people in the population. Death rates refer to the number of deaths per year per 1,000 people in the population. Immigration refers to the number of people moving into a particular area, while emigration refers to the number of people moving out of an area.

There are a variety of reasons why these numbers may fluctuate over time. 

Economic conditions, political instability, natural disasters, and other factors can all contribute to changes in population growth rates. Additionally, countries with higher birth rates tend to have younger populations, while countries with higher death rates tend to have older populations. As we can see from the text above, population growth is determined by several key factors: birth rate , death rate , immigration , and emigration . While some elements like economic conditions or political instability may cause these numbers to rise or fall in any given year , on whole , they give us a good picture about where a country's residents stand in terms of age .

Employment - how many new jobs are being created and what is the profile of these jobs?


The employment picture looks rosier than it has in many years. The unemployment rate is down to 4.9%, and there are nearly 5 million more jobs than there were when the recession began in 2007. In addition, job growth has been relatively steady for the past few years, averaging around 200,000 new jobs per month.

So where are these new jobs coming from? The vast majority are in the service sector, which includes everything from healthcare and education to hospitality and retail. This is not surprising, as the service sector is by far the largest part of the economy. What is surprising is that manufacturing – which was once a major source of good-paying middle-class jobs – has also been adding jobs lately. After losing nearly 6 million jobs during the recession, manufacturing has added back about 800,000 since 2010.

Of course, not all new jobs are created equal. Many of them are low-paying or part-time positions with few benefits. And even though overall job growth has been strong, wages have barely budged in recent years; inflation-adjusted median wages were actually lower in 2015 than they were in 2000. So while it’s encouraging to see job growth continuing at a solid pace, it’s important to remember that this alone is not enough to create an economy that works for everyone.

Supply and demand - how many new dwellings are being constructed and how does this relate to the underlying demand?


One of the key drivers of demand for new dwellings is population growth. As populations grow, the number of households also increases, resulting in increased demand for accommodation. Another driver of demand is household formations. This occurs when people form new households (eg due to relationship breakdowns or changes), or when existing household members move out to form their own households. This can result in an increase in the number of dwellings required to house the same number of people.

Infrastructure investment - are new roads, hospitals, transportation projects, schools or universities being built?

The government is investing in infrastructure projects to improve the quality of life for its citizens. New roads, hospitals, transportation projects, schools and universities are being built. This investment will result in better access to services and amenities for people living in the area. The government is committed to improving the standard of living for all its citizens and this investment is a step in the right direction.


Lifestyle factors - what impact do parks, beaches, shopping centres, nightlife and cafe precincts have on an area?


The presence of parks, beaches, shopping centres, nightlife and cafe precincts are all important factors to consider when assessing the livability of an area. Parks and beaches provide residents with access to outdoor recreation and leisure activities, while shopping centres, nightlife and cafe precincts create vibrant social hubs where people can come together to relax and enjoy themselves. All of these factors contribute to a sense of community and make an area more attractive to live in.

Shopping centres are often the focal point of commercial activity in an area, providing residents with convenient access to essential goods and services. They can also be great places to socialise and meet new people. Nightlife and cafe precincts offer a range of entertainment options for residents to enjoy, from bars and clubs to restaurants and cafes. These areas help to add excitement and vibrancy to an area, making it more enjoyable place to live.

Parks play a vital role in creating a sense of community by providing spaces for people to come together and interact. They also offer opportunities for recreation, relaxation and exercise – all important elements of a healthy lifestyle. Beaches provide another opportunity for residents to enjoy the outdoors, whether it’s swimming, sunbathing or simply taking in the stunning views.

All of these lifestyle factors contribute to making an area more livable. By providing residents with access to amenities that improve their quality of life, we can create thriving communities that people are proud to call home.

Affordability - what does it mean to be affordable and does this impact the demand for property in a particular area?


There are a number of factors that can impact the affordability of property in an area. The cost of living, wages, and the price of property can all play a role in determining how affordable an area is. If the cost of living is high, but wages are low, then it may be difficult for people to afford to live in that area. Similarly, if the price of property is high, but wages are low, it may also be difficult for people to afford to purchase a home. The demand for property in an area can be impacted by affordability; if an area is unaffordable for many people, the demand for property will likely be lower than if it was more affordable.

Add unpredictable human behaviour and psychology into the mix and it's easy to understand why so many people can get this wrong! When it comes to human behavior, there are a lot of factors that can come into play. People are complex creatures with a variety of emotions, motivations, and triggers that can influence their actions. And when you're trying to predict what someone will do, there's always the possibility that you'll get it wrong.

There are a number of reasons why this can happen. Maybe you misjudged the situation, or didn't have all the information you needed. Perhaps the person you're trying to predict is going through something personal that you don't know about, or they simply change their mind at the last minute. Whatever the reason, it's important to remember that humans are inherently unpredictable, and no matter how much we try to predict what they'll do next, there's always a chance we'll be wrong.

The property market is composed of a wide range of real estate, such as:

  • Detached Houses
  • Semi-detached Houses 
  • Townhouses
  • Apartments
  • Commercial real estate, such as offices, retail, hotels, and industrial property|

Every one of these asset classes involves a sub-market that operates at its own pace that is governed by a different set of factors which combine to create one large and complex property market. The residential rental market is one of the three main asset classes in the property market. The other two are the commercial office and retail markets. The residential rental market is made up of a number of sub-markets, each with its own dynamics and factors which combine to create one large and complex property market.

The commercial office market is the second largest asset class in the property market. Like the residential rental market, it is also made up of numerous sub-markets, each with different dynamics that contribute to the overall complexity of this asset class.

The retail market is the third major asset class in the property market. It too is comprised of smaller sub-markets, each with their own intricate dynamics that come together to form one large and complicated property sector.


The property development life-cycle: 

The property development life-cycle is the process that developers use to take a property from its initial conception through to completion and sale. The life-cycle typically consists of six key stages: feasibility, planning, design, construction, marketing and sales, and post-completion.

The first stage of the cycle is feasibility, where the developer assesses whether the project is technically and financially viable. This stage includes carrying out market research, sourcing funding, and obtaining any necessary planning permissions.

Once feasibility has been established, the next stage is planning. During this phase, the development team creates a detailed plan for the project including timelines, budgets, and specifications. Once again ,this stage may also involve seeking additional funding and securing any required permits.

With the plans in place ,the next stage is design. Here architects create drawings and models of the proposed development which are used to visualise what the finished project will look like .During this stage designs may be revised several times before construction can begin . After design comes construction ,the longest and most expensive phase of the property development life-cycle .At last ,after months or even years of hard work ,the project nears completion .All that remains is to carry out final touches such as fitting out units with furniture or planting landscaping . Marketing and sales then takes over to find buyers for commercial space or tenants for residential units . After successfully finding occupants ,post -completion services such as facilities management or maintenance begin to ensure that everything runs smoothly .

Feasibility or Pre-acquisition - before you purchase a property

1. Always consult with a professional before making any big decisions, especially when it comes to purchasing property. Feasibility studies are important to understand all of the potential risks and rewards associated with a project, and can save you a lot of money and heartache in the long run.

2. A feasibility study will take into account many different factors, including zoning regulations, environmental concerns, traffic patterns, and more. It is essential to have a clear understanding of all of these issues before moving forward with a purchase.

3. Many people make the mistake of assuming that all properties are viable investments, but this is simply not the case. Doing your due diligence upfront can save you a lot of time and money in the long run.

Planning - Permits and approvals - attaining the necessary permissions required to develop the project

Assuming that the project has been scoped and budgeted, the next step is to obtain the permits and approvals necessary to begin construction. Depending on the type of project, this can be a fairly straightforward process or a lengthy and involved one. For example, building a small home would require approval from the local planning commission and maybe a few other agencies, while constructing a large commercial development could entail getting sign-off from multiple government bodies as well as working with utilities to secure adequate water and sewer service. In any case, it is important to allow plenty of time for this step in order not to delay the overall project timeline.

Once all of the permits have been secured, the next phase of construction can begin. This typically includes mobilizing workers and equipment to the site, preparing the foundation or base upon which the structure will be built, and erecting scaffolding or other supports as needed. This phase can also be impacted by weather conditions or other unforeseen circumstances, so it is important to have some flexibility built into the schedule.

With the basic framework in place, work can now begin on finishing touches like exterior siding, roofing, windows, doors, and landscaping. Once again there are many potential variables that could impact progress at this stage, but assuming everything goes smoothly construction should wrap up relatively quickly. Finally, a final inspection will be conducted by city officials to ensure that everything meets code before occupancy permit can be issued and people can start moving in or using the new space as intended.

Concept design - conceiving the project

After the feasibility study is complete and the project is given the go-ahead, the concept design phase begins. This is when the designers begin to put their ideas down on paper (or into a computer). The aim at this stage is to develop a design that meets all of the client's requirements, within the constraints imposed by budget, time and other factors.

The first step in concept design is to generate a set of initial ideas or concepts. These concepts will be refined and developed through a process of sketching, modelling and prototyping until one or more final concepts are arrived at. The chosen concept(s) will then be used as the basis for developing detailed plans and drawings.

Once the client has approved the Concept Design, work can begin on developing Detailed Design documentation. This documentation will include everything from engineering drawings to specifications for materials and finishes.

Finance - securing the necessary funding to commence the construction

One of the most important aspects of any construction project is finance. Without the necessary funding in place, the project simply cannot get off the ground. There are a number of ways to secure funding for a construction project, including loans, grants, and private investment.

Loans are often the most common way to finance a construction project. Banks and other financial institutions are typically willing to lend money for such projects, as they can be confident that the loan will eventually be repaid with interest. However, securing a loan can be difficult, especially for smaller projects. Grants may also be available from government agencies or philanthropic organizations. These grants can provide vital funding for a construction project, but they are often very competitive and difficult to obtain.

Private investment is another option for financing a construction project. This can take many forms, from wealthy individuals investing in the project to companies providing materials or services at cost. Private investment can be vital in getting a construction project off the ground, but it can also be risky as there is no guarantee that the investment will be repaid if the project is unsuccessful.

Construction - building your project from the ground up

If you're starting a construction project from scratch, you'll need to do some careful planning before you can start building. This is especially true if you're working on a large project. You'll need to figure out what materials you need, how much they'll cost, and how long the project will take.

Once you have a plan in place, you can start construction. Depending on the size of your project, you may need to hire some help. If you're building a house, for example, you'll need electricians, plumbers, and carpenters. Once all the necessary workers are in place, construction can begin in earnest.

It's important to stay on schedule during construction. If things start to fall behind schedule, it can be difficult (and expensive) to catch up. By staying on top of things and keeping everyone moving forward, you can avoid potential problems down the road.

Pre-sales and marketing - the process of selling the project prior to starting construction

Pre-sales and marketing of a construction project can be a very important step in ensuring the success of the overall project. By selling the project prior to starting construction, you can ensure that there is enough interest and funding to complete the project. Additionally, pre-sales and marketing can help to generate excitement and buzz around the project, which can help to attract more attention and interest.

There are a number of different ways to go about pre-sales and marketing for a construction project. One way is to work with a marketing firm that specializes in this type of work. They will have experience in creating promotional materials, reaching potential buyers, and closing deals. Another option is to hire an experienced real estate agent who has knowledge of the construction industry. This option may be more expensive but it can save time and hassle in the long run.

Working with a professional firm or real estate agent is not the only way to conduct pre-sales and marketing for a construction project. There are also many DIY options available. For example, you could create your own website or blog dedicated to promoting the construction project. You could also reach out to local media outlets and try to get them interested in writing stories about the project. Whatever route you decide to take, pre-sales and marketing can be a valuable tool in ensuring the success of your construction project.

Post Completion or Settlement - the process of finishing your project and settling the financial exchange with buyers.

After you have completed your project and made all the necessary arrangements with your buyers, it is time to settle the financial exchange. This process can be daunting, but if you follow these steps it will be a breeze.

First, you need to calculate the total amount of money that is owed to you. This includes the cost of materials, labor, and any other expenses that were incurred during the project. Once you have this figure, you can begin negotiations with your buyers.

Next, you will need to draft a contract that outlines the terms of the sale. This document should include information such as the purchase price, delivery date, and any warranties or guarantees that are being offered. Once both parties have signed this contract, it is binding and cannot be changed.

Finally, once the contract has been finalized and signed by both parties, you will need to arrange for payment. This can be done through a variety of methods, such as wire transfer or check. After payment has been received, the project is considered complete and both parties can move on to their next ventures!

The key to successful property development is balancing risk with reward. Investors often use the “risk and return” relationship to decide how risky an investment will be (and how much they can earn). The risk and return relationship is a simple concept: the more you invest in something that has higher risk, the more you can expect to earn—but there's also a higher chance you could lose money. On the flip side, if you stick with investments that have lower-risk potential, your returns might not be as high but you're less likely to lose any of your initial investment.

Development is risky, therefore being a successful developer requires careful planning and could be described as a balancing act.


Time, cost, quality

There are three essential elements to any successful project: time, cost, and quality. All three must be managed effectively in order for the project to be successful.

Time management is critical to any project. The project manager must establish a schedule and ensure that all tasks are completed within the allotted time frame. Cost management is also important. The project manager must control costs in order to stay within budget. Finally, quality must be managed in order to meet the requirements of the customer or client.

These three elements must be balanced throughout the life of the project. If one element is out of balance, it can have a negative impact on the other two elements. For example, if time is not managed properly, it can lead to cost overruns and/or poor quality work. Similarly, if cost is not managed properly, it can lead to schedule delays and/or poor quality work. And finally, if quality is not managed properly, it can lead to schedule delays and/or increased costs.

Thus, effective management of these three essential elements is critical to the success of any project

The relationship between time, cost and quality is an equally important consideration in property development and every decision is influenced by the relationship between these three forces:

  • time is speed;
  • cost is money;
  • quality is the product.

You can finance your property development through four ways. Which one do you think will be the best to fund your property development? We can help you get started. Call us today, talk to one of our experts.
]]>Fri, 06 May 2022 02:15:00 -0800<![CDATA[How Can You Maximize Your Investment Property Returns? ]]>https://lololol.zohosites.com/thoughts/post/How-Can-You-Maximize-Your-Investment-Property-Returns
Whether you are new to Buy-to-Let Private Rental Sector or a seasoned professional landlord, Fund manager or Private Equity Asset Manager maximizing returns on your investment property or portfolio will be one of your main ongoing objectives or responsibilities.   


Below are some thoughts on what you may want to do improve your investment and capital returns.

1. Understanding Market Rent & Pricing Your Rent(s) Appropriately

This is not about being the most expensive or the least expensive (cheapest) but rather pricing to maximise value for money for your target market potential tenants, reduce your vacancy rates and ensure long term profitable paying tenants. 


Rent should cover all ongoing costs, take into account inflation and with a margin to absorb any unexpected events whilst still breaking-even and still making you a profit. Its a balancing act where you want the scale to be always on the generating positive cash flow with full occupancy all the time if not most of the time. 


When it comes to determining fair market value for rent, market data is available for free from online portals such as Rightmove, Zoopla, NetHousePrices, HousePrice.AI as well as from local property letting and management agents who would also want to win your ongoing letting management business.   

    We aim to deliver much needed capital for SME’s and Property Developers.

    2. Professional Property Marketing Images, Brochure

    First impressions count the most and getting market rate for your investment property requires finding prospective tenants who aren’t looking for the cheapest property, but rather, exception value for money property that they’ll love to live in and be proud of. 


    Whilst its always tempting to take the pictures yourself and save a few pounds in the process, its more important that these pictures taken by professionals and make your target tenants want to arrange a viewing. Cutting costs on your ultimate sales brochure is not an option if you are serious about maximizing your investment returns.


    Sell & rent safely with for example Spec whom are ready to help with 360º virtual tours, delivered to over 500 agents in London alone. Spec Digital Surveyors are certified by RICS and scan every property using the Leica BLK 360, a revolutionary 3D camera. 

    3. On-going and Preventative Property Maintenance 

    This is much easier said than done as many investors approach is "why fix it, if it isn't broken" which is ultimate the wrong approach and can be costing more than most realise. Along with this common approach to only fix things when they’re in need of repair, is to try and DIY the repairs and maintenance.
    Reactive maintenance is, almost by definition, more costly and far less convenient.


    Better is to have a professional maintenance company that can handle any and every likely property maintenance job that will inevitable occur as its not a matter of "If" but rather "When" required.  Disney is one well know company that does on-going preventative maintenance on a daily basis. 

    4. Mitigating RISK via Insurance 

    Insurance is a usually an afterthought for most people and businesses alike, even though we all know that life is full of unexpected events we should have contingency plans for. 
    Whilst you don't need to be over-insured, adequate insurance is paramount and its adequacy should be reviewed on a regular basis - yearly ideally. 

    Its always a good idea to take the time to get a few quotes to compare with each other but I wouldn't spend too much time on this and also remember you want a reputable insurer that will pay out should the unexpected occur. Insurers claims payment track record is more important than cost in this aspect. The cheapest insurance that wont pay out is just as expensive. ts always a good idea to take the time to get a few quotes to compare with each other but I wouldn't spend too much time on this and also remember you want a reputable insurer that will pay out should the unexpected occur. Insurers claims payment track record is more important than cost in this aspect. The cheapest insurance that wont pay out is just as expensive. 


    Insurance providers will usually give you better rates if they’re insuring more of your assets as a loyalty benefit and also helps with simplifying your administration etc. 

      5. Debt or Mortgage Finance Review 

      Professional advice in the aspect - whilst it is not free - will benefit you timewise and money wise, by taking a review of the mortgage rate you’re currently paying on your investment property, comparing it with today’s mortgage rates and giving you an objective refinance cost vs benefit analysis. Yes, refinancing involves more administrative paperwork and can be a pain, but a lower rate could save you thousands of pounds every year translating into more bottom line profits. 

      Don't forget, when you refinance your mortgage, there’s often an opportunity to pull some cash out for further property investments or portfolio maintenance as well as refurbishments. 

      6.  The Right Ownership Vehicle, Tax & Tax Planning 

      Perhaps the very first consideration at the point of considering acquiring investment property and maybe even review in conjunction with mortgage debt review? 

      The right entity structure, Individual ownership (Sole Trader), Limited Liability Partnership (LLP) or Limited Company (Ltd) will depend on your circumstances and is a decision that should be taken with appropriate professional guidance from a qualified and chartered accountant.

      A qualified accountants guidance will go a long way in looking at and planning for your Wealth Creation as well as Wealth Preservation. 
      Whilst the above suggests a little more administrative time investment that is a limited resource for all of us, its a MUST and Worthwhile endeavour even if you follow through on just one or two aspects, you will have more money in your pocket at the end of the day. Its ultimately not just about earning money but also keeping it... 



      ]]>      Sat, 09 May 2020 06:37:13 -0800      <![CDATA[No Nonsense Property Offers to Purchase. Do not act like you are buying fruits at your Sunday farmers market... ]]>https://lololol.zohosites.com/thoughts/post/No-Nonsense-Property-Offers-to-Purchase.-Do-not-act-like-you-are-buying-fruits-at-your-Sunday-farmers-market...
      Contrary to much given advice on the subject matter of offering to purchase any real estate, residential or commercial  property, we don't believe in the popularly advised so called negotiation tactics, "knowing how to talk down a price is an integral part of the profession." A lot of time is wasted with these so called tactics and ultimately focus on other profitable use of professional investors limited time is mis-directed. 


      Many situations arise where homeowners or agents overvalue a property to such an extent that it is more than likely the norm than the exception unfortunately and whilst its surprising how many seem to believe it can be hard to have a conversation about how much the property is actually worth, there is a very simple solution to this minor obstacle. 


      Whether the property is overpriced due to inexperience, a lack of understanding of the market, or simply someone hoping for the best, your role as a value focused real estate investment professional is NOT to help guide negotiations to something reasonable for the people involved but rather simply WIN, WIN, WIN! Anything other than WIN, WIN, WIN will more than likely resulted in wasted hours, days, weeks or even months. Take a hint from Warren Buffet's Value Investing Simple & Effective strategy.    

      We aim to deliver much needed capital for SME’s and Property Developers.

      1. Use Objective Market Data 

      The best way to frame a negotiation is the buyer and seller working together to establish a fair market value based on third-party, objective market data and current economic as well as political climate. 


      Being indignant or haggling over price only serves to put the seller in defensive mode. If comparable sold property date is carefully chosen and sound fact based arguments are made for their inclusion, it doesn't need to get emotional or haggling contest. 

      2. Invest for the long term 

      As an investor, you should be making money at the point of purchase NOT some unknown future date. Your initial offer MUST always be 20-30% less than seller/vendors target asking price and must be backed-up with appropriate market data. Whilst many sellers will bury their heads/ frown at your "serious offer" and prefer to wait for the next possible buyer who will over-pay, you must every 30 days or so, check in and remind the vendor or agent of your still standing serious offer and ready to complete transaction within 8 weeks. Such an approach will definitely work best for you, as it allows you to win when at the point you acquire the property with the future even brighter. 

      3. We all know that Cash Is King. Attach a deposit cheque to your offer.

      Showing up or submitting your offer together with a contract stating instruction of solicitors & property survey with the aim to complete within 8 weeks and a deposit cheque sends the message...
       

      a. I am a serious professional 

      b. I am backing my words/intentions with crystal clear actions and ultimately cash 

      c. No time to waste. I respect your time and more importantly mine. Lets transact or lets move on and its really that simple 


      Its a fact not just psychology, putting a contract and hard cash on the table will set you apart from the "competition" and show the seller how serious you are about buying the property. The check must always be made out to title or escrow so you don't have to worry about a random seller running off with your money. Take professional legal advice & assistance on the best way to do this for your circumstances & jurisdiction. 

      4. Transparency Builds Trust, Long Term Relationships & WINS always.

      It's always difficult for a vendor/ seller to disagree with market factual data. Stating the factors behind arriving at a certain valuation will build a collaborative relationship between buyer, agent and or seller. Ultimately contract subject to purchase price not being lower than official survey value and abortive costs undertaking should very easily resolve this minor challenge for a WIN, WIN, WIN outcome. 

      5. Above all Know & Understand Your Seller as well as Motivating Factors 

      The most important and initial task to do is to understand the other party's priorities & motivations including any time factor constraints. You want to know what ultimately is most important offer acceptance factor(s). It is not always the highest price as is generally thought as most buyers don't do in-depth research in this aspect. You wouldn't play a game without knowing the rules, would you? 

      ]]>      Thu, 07 May 2020 21:05:00 -0800      <![CDATA[Why consider a bridging loan to fund your property development?]]>https://lololol.zohosites.com/thoughts/post/Why-consider-a-bridging-loan-to-fund-your-property-development


      Savvy property developers know that the best time to buy land or develop property is… yesterday. With that in mind, many professional developers in the industry are looking for a fast, flexible loan that allows them to invest in a property quickly, and which can be paid back in a way that suits their financial situation.

       

      GIC Capital have been supplying property developers with bridging loans for years, ensuring that the property development industry remains active, dynamic and diverse.               

       


      Bridging loans of the past

       

      Traditionally, bridging loans have not had the best reputation. In the past, they were provided to borrowers who needed to buy at a moment’s notice but did not have enough time to arrange their financing. Bridging loans came to be known as inflexible and expensive, with unfair loopholes and severe penalties for late repayments.

       

      We and other companies that provide financial solutions to property developers have been transforming this reputation over the years by changing these unfair and unrealistic practices. Bridging loans in the 21st century have evolved.

       


      Bridging loans today

       

      Today, property developers are finding the perfect solution to financial deficits in bridging loans. They’re ideal for buying a house or securing planning permission on a plot of land. In today’s market, it’s more important than ever that we focus time, money and energy into creating luxury and affordable housing alike, and a bridging loan can be great for quick buying of a development site that already has planning consent.

       

      Moreover, if you’re planning a refurbishment of a property to sell on to a new family or the next generation of house buyers, a bridging loan offers a quick and secure fix. Likewise, a bridging loan can be used when refinancing to a buy to let mortgage or commercial mortgage.

       

      Bridging loans of today are a property developer’s dream, giving you the opportunity to use your time and skills to develop beautiful homes and spaces.

       


      GIC Capital’s bridging loans

       

      We’ve worked hard to revolutionise bridging loans and ensure that they serve property developers as effectively as possible. Our bridging loans offer a broader, more flexible way of financing property development, and the criteria we ask that our customers meet is just the bare essentials. You can find out more about GIC Capital’s bridging loans here.                      

      We aim to deliver much needed capital to start-ups and SMEs

      Call Now +44 (0) 203 2909019

      ]]>      Tue, 24 Jul 2018 22:25:00 -0800      <![CDATA[How to find property development projects that are suitable for equity funding]]>https://lololol.zohosites.com/thoughts/post/How-to-find-property-development-projects-that-are-suitable-for-equity-funding


      If you’re a property developer that’s keen to take advantage of our equity funding option, you’ll need to pick out the right project to be accepted. It might take a bit of work to discover a project that will capture the interest of investors but once you do, you stand to make a significant profit.


      If you’ve got the ambition to turn around residential developments, there are several ways we can help you. For experienced developers, equity funding can help you scale up your plan. Investors understand that the housing market is lucrative and set to be even more so due to the housing crisis – put a viable, profitable development project in front of them and they’ll be eager to invest.


      But how do you find your next project?

      • Location is key – Investors want to back projects where they know there’s going to be demand for the developments and where historic sales prices show they can make a return. In the UK, London and the commuter belt around the capital comes out top. Other regional cities that are hubs for professionals, such as Bristol and Manchester, are good bets too.
      • Develop efficient timelines – No investor wants to wait three years for their return only to find that the project is only halfway through. Your timelines need to be viable but also swift. Twelve to 36 months should be your standard project timeline where you want to attract outside investment – but don’t be tempted to be overly optimistic, keep your development goals realistic.
      • Think big – Investors aim to make as much as a return as possible on projects. While a smaller development project might be appealing to you, the typical minimum equity ticket size is between £1.5 million and £2 million. You’ll need to show you have the skills and experience to handle projects on this scale too.
      • Know the buyers market – If your development doesn’t appeal to buyers, you’re going to have a tough time selling. While London and other cities might be linked to soaring property prices, investors prefer to keep unit values below the £1 million mark, reaching a much greater audience.

      Get in touch with use today to find out if your next property development vision would be suitable for equity funding.

      We aim to deliver much needed capital to start-ups and SMEs

      Call Now +44 (0) 203 2909019

      ]]>      Wed, 18 Jul 2018 22:32:00 -0800      <![CDATA[What Does the Housing Crisis Mean for Property Developers?]]>https://lololol.zohosites.com/thoughts/post/What-Does-the-Housing-Crisis-Mean-for-Property-Developers


      The housing crisis is one of the biggest issues facing the country right now. Councils across the UK are struggling to find enough affordable housing for those that need it, the government is trying to come up with solutions and, all the while, housing stock is becoming harder to procure.

      Those in property development have their role to play. There UK needs more housing, and that’s a fact. With this in mind, let’s look at how those working in the property market can ease housing shortages and benefit at the same time.



      The Government Needs You


      If you work in property development, it’s highly likely you have read about the various plans and schemes aimed at easing the housing crisis and enabling more people to get on the property ladder. Now, the government is putting a firm emphasis on the role of property developers in these efforts.

      A recent speech from Prime Minister Theresa May saw her talking about the role of property developers in “restoring the dream” of home ownership. She talked in detail about a need to rewrite planning laws to make it easier for private housebuilders to step up and fill the gaps in construction of new homes.

      For property developers, this represents a golden opportunity. There is a huge potential market of home buyers out there that are just waiting for someone to meet their needs. The government proposes to go way beyond its white paper on the issue published last year and allow councils to borrow more money to invest in housing. For property developers, this means councils with new sources of cash who are going to be looking for the land and expertise of property developers to make new housing developments a reality.



      The Flip Side


      On the other side of the issue, many government plans to increase housing stock have gone nowhere. People are sceptical about anything the PM announces to do with the issue, as there has been scant improvement from other schemes and proposals. For property developers, this means their existing portfolios will only increase in value.

      A paucity of housing makes existing stock more valuable. It’s a simple equation but one that is good news for property developers. The longer the shortage of housing goes on, the more people will be willing to pay for those that are available, and property developers can benefit from snapping up housing and property fresh to the market. People need homes, and someone has to provide them, and with such a demand, property developers are perfectly placed to reap the rewards.


      If you’re thinking about investing in property, or want to expand your existing portfolio with expansion capital get in touch with GIC Capital today.  

      We aim to deliver much needed capital to start-ups and SMEs

      Call Now +44 (0) 203 2909019

      ]]>      Tue, 26 Jun 2018 22:55:30 -0800