When speaking to investors if they would be interested in purchasing below market value new builds many answer no. When I ask why, they respond ‘I won’t be able to profit as much as I could on a second hand property which requires work’
So, let’s look at new builds investments in more depth.
At Castledene Property Consultants, we work directly with quality developers, sourcing many investment opportunities, not just below the advertised market price, but MORE IMPORTANTLY, below the comparable on site selling price…. Up to 20% below.
If we review the last development we sold, the properties were achieving £134,950 on site; we were able to offer these properties to our investors for £115,000 – Almost £20,000 Discount (Reason for the discount – the developer was approaching their half year financial period).
Undoubtedly a potential to “flip” as well as a fantastic long term rental opportunity.
Think of the following points also…
Over the next 10 years, building costs will increase – the new minimum wage will have a bearing in this regard (£9 per hour by 2020!)
It was reported in October 2015 that we need 1,000,000 new skilled workers in construction by 2027 to fulfil demand needs. Recent figures show that construction output fell by 4.3% in August 2015. This isn’t because demand for new builds has declined, but because of a lack of workers with the correct skills… again a factor in price rises!
Finally – Prices of build materials are only going one way with all of this demand… and it is not down!
If you’re interested in more information and would like a call or email before we release to our general database, or would like to know what deals we currently have please feel free to contact me at firstname.lastname@example.org or call 0800 0149 940.