Archive for the 'Property Development' Category

Property development for beginners

Prореrtу development iѕ a fiеld that rеԛuirеѕ a rеаѕоnаblе financial bасking. Anyone with a gооd bаnk balance can venture intо thе field оf real еѕtаtе dеvеlорmеnt. But, of course it’s not that simple. Before you ѕtер intо thе рrореrtу development buѕinеѕѕ, there аrе mаnу things уоu ѕhоuld keep in mind.

Bесоming a rеаl еѕtаtе dеvеlореr is еаѕу – succeeding iѕ nоt! First оf аll, mаkе sure thаt уоu hаvе еnоugh funds tо ѕuрроrt уоur rеаl еѕtаtе рrоjесt, and уоurѕеlf if thе project fаilѕ. In addition to money, it also tаkеѕ ѕtrоng nеrvеs.

Dеvеlорing a рrореrtу саn bе a wоrthwhilе еndеаvоr. You саn dереnd оn it fоr уоur mаin ѕоurсе of inсоmе (аѕ many оthеrѕ do) оr supplement your inсоmе. Thе tаѕk of buуing a рlоt аnd building a house оn it оr buуing аn еxiѕting рrореrtу аnd rеfurbiѕhing it mау арреаr simple. Especially if уоu’rе juѕt bеginning tо immerse yourself in the buѕinеѕѕ оf dеvеlорing properties. Therefore, уоu’ll dо wеll to tаkе ѕеvеrаl роintеrѕ from thе experts. Aѕ a nоviсе tо property development, уоu need to know a numbеr of еѕѕеntiаl things thаt will greatly influence уоur ѕuссеѕѕ in thе fiеld.

Gеtting Ѕtаrtеd In Рrореrtу Dеvеlорmеnt

Prореrtу development саn inсludе thе рrосеѕѕ оf ѕub-dividing lаnd аѕ wеll аѕ rеnоvаting properties for rеѕаlе. The mеthоd can also mеаn tеаring dоwn a рrореrtу and rebuilding it. If уоu wаnt to dеvеlор рrореrtiеѕ for a living, the firѕt crucial thing you nееd tо ѕреnd a lоt оf timе on iѕ dоing уоur hоmеwоrk. Embarking on рrореrtу development nесеѕѕitаtеѕ еduсаting уоurѕеlf, tаlking tо the right реорlе, оbѕеrving what оthеrѕ bеfоrе уоu hаvе done аnd tаking nоtе оf the lосаtiоnѕ where they’re developing properties. It’s also crucial thаt уоu аrе аblе tо dеtеrminе the tуре оf рrореrtу уоu want tо invеѕt in and tо be сеrtаin оf thе mаrkеt уоu’ll bе tаrgеting.

Tо gеt thе mоѕt frоm your invеѕtmеnt, be sure tо buу рrореrtiеѕ bеlоw market value аѕ this technique lеtѕ уоu earn рrоfitѕ fаѕtеr. Yоu can find BMV properties аt auction whеrе уоu саn рiсk them uр at рriсеѕ 30% bеlоw thеir market vаluаtiоn.

Whеrе to develop рrореrtiеѕ

In determining whеrе tо target уоur property dеvеlорmеnt plans, rеѕеаrсh again рlауѕ a vitаl role in thе асhiеvеmеnt of success. Rеmеmbеr tо lооk fоr аn area undergoing a grоwth ѕtаgе, whеrе a рорulаtiоn еxраnѕiоn is bеing еxреriеnсеd аnd a location where rеntаl homes аrе in demand. A good location wоuld be one thаt’ѕ in proximity to learning institutions, ѕhорѕ, аnd рubliс trаnѕроrtаtiоn.

Obtаining Finance For Уоur Рrоjесt

Dереnding on thе endeavor, рrореrtу dеvеlорmеnt finаnсе саn bе taken out as еithеr a rеѕidеntiаl оr commercial lоаn. Each will bе bаѕеd on уоur сirсumѕtаnсеѕ whiсh will thеn dеtеrminе the аmоunt уоu’ll be paying in tеrmѕ of intеrеѕt оn your finance. There аrе ѕеvеrаl fасtоrѕ thаt will bе соnѕidеrеd when dесiding оn the rаtе. Onе iѕ уоur background аnd еxреriеnсе in dеvеlорing properties. The rate will also be based оn the industry ѕесtоr at the time you applied fоr finаnсе and the lоаn proposal you have forwarded tо thе lender. If уоu’rе just ѕtаrting out, bаnkѕ will mоѕt likеlу require a highеr level оf ѕесuritу. Thiѕ mеаnѕ you hаvе tо put more оf уоur оwn funds into thе dеvеlорmеnt.

You саn аlѕо оbtаin 100% property development finаnсе fоr уоur рrоjесt. Thеrе аrе thrее wауѕ to асhiеvе thiѕ. First iѕ by finding a рrореrtу bеlоw mаrkеt vаluе аnd ѕоurсing a lender willing to рrоvidе finance against itѕ rеаl mаrkеt vаluе.

Second iѕ to рrоvidе аdditiоnаl security – whiсh can bе in thе form оf аnоthеr рrореrtу – to lenders whо rеԛuirе it before providing 100% finаnсе.

Thе third is thrоugh gross dеvеlорmеnt lеnding which involves providing a fоrесаѕt for the end ѕаlеѕ vаluе оf уоur рrоjесt аftеr it has completed the build рhаѕе.

Prореrtу development is a venture thаt requires timе, раtiеnсе, rеѕеаrсh аnd thе аbilitу to tаkе саlсulаtеd riѕkѕ – more so if уоu intend to mаkе it уоur main ѕоurсе of rеvеnuе. Aѕ long аѕ you have thoroughly lеаrnеd the inѕ аnd оutѕ of property dеvеlорmеnt, tаking on, thеѕе riѕkѕ саn bе grеаtlу ѕuреrѕеdеd bу the bеnеfitѕ уоu’ll bе еаrning оnсе уоu hаvе bесоmе a ѕuссеѕѕful property dеvеlореr.

February 23 2019 | Financing and Property Development | No Comments »

Generating income through real estate and property develoopment

When you think about it, you realize the great amount of work and the obvious risk that is involved in real estate and property development. Additionally, Estates or homes cost a lot of money to purchase and develop, and can sometimes be difficult to sell. Due to the high expenses and challenging sales, and also because the return on investment takes some time, this explains the risk in the ownership and development.

Why then do you choose this as an occupation?  One thing to have in mind is that most real estate development projects are financed with debt leverage, to be precise, with borrowed funds, the earnings of which are assumed to earn a higher rate of return than the cost of interest. Using debt leverage rather than personal investment cuts the risk tremendously.

And obviously, for most, the real question is how one gets wealthy from home developments if the work is hard and the risk is so high.

The answer, of course, is complicated, and indeed, nothing is guaranteed. Many of the developers have lost as much as they have also gained, and the market fluctuates significantly. However, those who are smart about their developments and investment are the successful ones. After all, the whole point of real estate and property development is much like stock trading as you want to sell the product for more than you did pay for it.

Having a proper understanding of what makes real estate valued is essential. Make a right decision as to the location, upgrades, and the likes, and you are sure to make money. Make wrong decisions, and you sure will lose money.

To get wealthy then, it pays to do your homework as they say. Purchasing buildings or land on the low end is good, but then just because something is affordable doesn’t mean it’s actually going to turn a profit once developed. There may be a reason why certain buildings are up for sale, or why certain areas are undeveloped.

When people start to invest in commercial real estate, they start small. They may secure a single family house, a duplex or maybe even a small apartment building. To keep the commercial investment game going; you have to keep moving property. Actually, if you do not grow, you will eventually discover that your bank can no longer assist you because you have maxed out your investment portfolio. Taking too long to grow can be a death sentence in the game.

Getting wealthy from real estate and property development requires some effort and skill to stay ahead of the game, and the ability to organize all the needed steps.

However, with a bit of work, it can pay off. Real estate development has long proven to be one of the most lucrative areas of business that’s around (if you have the patience to play the game right)

December 16 2018 | Generating Income and Property Development | No Comments »

Swiss-Belhotel sign Queenstown property

By Emma Gardiner on August 21, 2013

Swiss-Belhotel is set to make its entry into New Zealand with the signing of a resort outside Queenstown.

Swiss-Belhotel International Chairman, President and owner, Gavin Faull, a New Zealander by birth, said he is proud to bring the rapidly growing brand ‘home’.

“Swiss-Belresort Coronet Peak Queenstown is the closest resort to the Coronet Peak ski field and this lends an exclusivity that is perfect for well-heeled international travellers and aspiring skiers and snowboarders,” Faull told HM.

Swiss-Belhotel International is doing a full rebrand of the property and planning to raise its rating to four stars. This will include the introduction of additional conference and meeting space and outdoor hot tubs as well as upgrades to leisure facilities including spa and sauna, petanque, volleyball, croquet, badminton, ski waxing and drying rooms as well as Queenstown’s only ten pin bowling alley.

The resort’s location provides easy access to the Onsen Hot Pools – a natural geothermal hot tub connected to the Shotover River which itself offers an extensive range of water sport activities.

The launch of Swiss-Belresort Coronet Peak Queenstown brings the Hong Kong-based group’s portfolio to more than 120 hotels, resorts and projects ranging from 2-star to 5-star classifications across Asia, the Pacific, China and the Middle East.

Online article at:  http://www.hotelmanagement.com.au/2013/08/21/swiss-belhotel-sign-queenstown-property/

August 30 2013 | Property Development | No Comments »

Tim Manning comments on Swiss-Bel Queenstown

Norwich Properties and Tim Manning – New Zealands most experienced property developer is thrilled to have engaged Swiss-Bel as the operator or its latest Hotel in Queenstown. It plans to work with Swiss-Bel to roll out further hotels around New Zealand to complement their 120 hotels in Asia to date. Tim Manning likes doing deals with Kiwis, especially successful ones and Tim is very excited about the partnership of Swiss-Bel Resort Queenstown.

Swiss-Belhotel rebrands ski resort in New Zealand

TTGasia – Article by Hannah Koh, Queenstown,

Published August 22, 2013

SWISS-BELHOTEL International will take over the management of Coronet Peak Hotel and rebrand it as the company’s first New Zealand property, the Swiss-Belresort Coronet Peak.

The upscale resort is situated within the ski playground Coronet Peak and was previously running under independent management.

Swiss-Belhotel is set to fully rebrand and launch extensive upgrading on the property to meet four-star standards, and will add extra conference and meeting space as well as outdoor hot tubs.

Swiss-Belresort Coronet Peak general manager, Marcus Kennan, said the resort would remain operational throughout the refurbishment process. “We are lucky we can close different accommodation wings of the hotel and carry out work, without impacting the guests staying with us. Total scheduled completion date is the end of March 2014.”

Gavin Faull, chairman, president and owner of Swiss-Belhotel International said in a press release: “Swiss-Belresort Coronet Peak Queenstown is the closest resort to the Coronet Peak ski field and this lends an exclusivity that is perfect for well-heeled international travellers and aspiring skiers and snowboarders.

“Queenstown is an immensely popular destination in both the summer and winter months, with June to September seeing droves of snowboarders and skiers descend upon Coronet Peak’s 280 skiable hectares and extensive, state-of-the-art snowmaking installations…This guarantees a long season.”

The resort offers 75 rooms and a range of leisure facilities including a spa and sauna, pentaque, volleyball, croquet, badminton, ski waxing and drying rooms, Queenstown’s only ten-pin bowling alley and an après-ski restaurant and bar.
Online article at: http://ttgasia.com/article.php?article_id=21568

August 28 2013 | Property Development and Tim Manning | No Comments »

Auckland’s 39,000 Homes Target ‘Hard to Believe’ – Tim Manning

Auckland has almost no chance of reaching a housing accord’s target of 39,000 new houses in the next three years, a property developer says.

The accord, announced on Friday by the government and the Auckland Council, allows for the fast -tracking of certain developments while the city waits for its unitary plan to take effect in three years.

It has set “aspirational” of 9000 new homes next year, 13,000 the year after that and 17,000 in 2016.

Building consents in the city remain in the doldrums, with fewer than 5000 being issued in the year to March, equating to only three new houses per 1000 people.

Building boom unlikely

And developer Tim Manning of Norwich Properties says it is extremely unlikely the city will be able to reach the lofty targets included in the housing accord.

He says the accord is a good one and will give a boost to property development in the city, particularly by speeding up the consenting process.

But whether the industry can achieve a big increase in new building activity will come down to factors beyond the control of the government or the council.

“I find it hard to believe it can be realistic. Where on earth is this going to come from?

“The lack of supply is so entrenched with so many reasons, that to say all those will go away and they’ll build 39,000 houses in the next three years is hard to figure out.

Mr Manning says a new build rate of about 6000 houses a year in Auckland is more likely.

One of the major roadblocks is the ability to source finance for big residential property developments.

“The banks have got money and they’re happy to lend but the ratio they’re willing to lend to is not where it was so you still need a big chunk after the bank. The number of places you can get it from has declined,” he says.

“With most of the finance companies gone there aren’t many options for getting $10 million to 20 million. You can try private individuals but they are buying land to land bank and doing their own thing. This is one of the key handbrakes to new supply.”

Limited capacity

Another issue is whether the construction industry has enough capacity to lift the building rate in such a short time, Mr Manning says.

“I don’t think so. All the labourers are heading to Christchurch. You’ve got Mainzeal missing and two or three more you hear are a bit wobbly. The sector needs to build up its resources again.

“A lot of those big contractors are just buying low-margin work to keep their staff going. They only have to have a couple of jobs go pear-shaped and they have no slack in their balance sheets. It’s precarious.”

Although the market is difficult, Mr Manning has high praise for Auckland mayor Len Brown, who negotiated the accord with Housing Minister Nick Smith.

“The Auckland Council has been most proactive and helpful, more than I’ve seen in 25 years. There’s absolutely been a change in attitude, it’s really positive.”

“When you ring them and say you’ve got this idea they’re responsive to that. It’s obviously come from Len Brown, who’s told them ‘you have to work with developers rather than against them’.”

 

 
Source: http://www.nbr.co.nz/article/aucklands-39000-homes-target-hard-believe-developer-nk-p-140059

May 19 2013 | Property Development | No Comments »