With many in the industry now predicting a double dip, and the latest figures showing a 1% fall in property prices last month, you would need to be brave to purchase a new property development or renovation project. The price of auction property and those in need of modernisation is directly related to the property market sentiment. When there is talk of us being “out of the worst of it” and the “green shoots of recovery”, you can almost see the auction guide prices rising with every positive comment. Considering that most large property developments, conversions, and renovations will take up to a year to be back on the market, you must consider where prices will have settled in a year’s time. If your project requires planning applications, conservation works or grant funding the project period could be nearer to 2 years. So is now the best time to profit from the populations concerns of further pressures on property prices. With Land prices facing a recent revival it look like some of the larger house builders are confident that the future is brighter than many believe.
March 7, 2010
March 6, 2010
Renovating ex-local authority houses
What can be done by way of improvements / modernisation / upgrading to the latest property regulations, and decor, progressed by private investors to ex-local authority properties was outlined in an article in a national newspaper last weekend (Sunday 28th February). The national Sunday newspaper article concerned highlighted what had been achieved in the Midlands.
Ex-local authority houses usually have a lot going for them in that more often than not they are located in an area which has easy access to local amenities :- shops, doctors, dentists, buses, and schools.
Such ex-local authority properties are also usually well built, have reasonably large sized rooms, have been maintained well by the local authority concerned. They also often have a good sized garden with space to have a shed or other outbuildings. Some of these properties can be adapted so that off road parking can be provided, if not already provided.
After the builder has done the necessary work it can be hard to imagine what the house looked like originally, but builders can make such properties into lovely modern homes.
March 5, 2010
Ten things you need to know before you start a property renovation
1. Before you buy get a member of the Royal Institute of chartered surveyors to give you a full written report. They are the most experienced and best placed individuals to give you all the facts in an unbiased report. They have the skills and experience to then produce a schedule of works, once you have a schedule of works you can look for experienced contractors to undertake the renovation.
2. Choosing the right contractor : You should choose a contractor that has experience with the type of renovation that you are undertaking. They will be able to provide you with a fixed price quotation for all the items on your schedule of works. Your surveyor will be able to look at your contractor’s quotation and advise you on savings and specifications.
3. Start with the end in mind: Get a firm idea on paper of exactly what you want form your renovation project, take the time to think about finishes, floor heights, security systems, phone points, TV and audio points, the position of sockets, furniture, and how you will use the space.
4. Lead times: Certain items and renovation processes have lead times, drying times, importing times, and installation times, if your require new services you may not need them until the end of the project but they are some of the first things that need to be taken care of.
5. Budgets, funding and contingency: Winging it is NOT an option! One of the worst things that can happen during any renovation or conversion is running out of money. Money is the oxygen that a project needs to run efficiently, if funding gets too tight it often forces very poor decisions that can affect the end result and value of a renovation project.
6. Project phasing and works schedules: If you have your dream property but you do not quite have enough funds to safely carry out the renovation or development, it is a good idea to produce a schedule of works or phase the works. If you do this do not be tempted to do the nice bits first, do not fit the new kitchen and bathroom until the leaky roof has been repaired.
7. Set a sensible period of works: Good quality renovations of small commercial or large residential properties can take years, a complex renovation or conversion of listed buildings or buildings in a conservation area need to be agreed with the local authority conservation department. Liaising with a conservation officer can slow down vital stages in the project so make sure you allow enough time.
8. Follow your plans but follow your guide: Choose a surveyor and main contractor who will follow your plans and choices but be guided by their advice. It is truly the mark of a good contractor if they can lead and advise their client but remain mindful of following their wishes. Choose a contractor who will lead the project and manage the many components of a successful renovation or conversion. They are your one of your biggest assets so listen carefully to their advice and then make an informed decision once you have all the facts.
9. Passion and a commercial rational: Make sure you get what you want, but when spending tens of thousands of pounds always imagine yourself as an investor in the project. Peoples circumstances change, and if you chose to sell or change the use of your property would you realise the investment you have made?
10. Plan and enjoy: plan your project out as much as possible, make well thought out decisions early on and before a contractor is waiting on the phone for a decision. If you really want to enjoy your project and relax. The more you plan and research the more relaxed you will be during the renovation or conversion. Celebrate the milestones, spending that sort of cash always carries some level of stress, don’t wait until the end to celebrate enjoy the milestones along the way. Remember once you have finished a well planned project you will have something unique, something to be proud of, and some good memories!
February 28, 2010
Building plots for sale in the midlands
There are many ways to find building plots in the midlands but many developers do not like to look at site that have been on the market for some time. The reason for this is that they believe that if the site or plot was a great deal one of their competitors would have already snapped up the site. The same applies for many vendors, those who own potential residential or commercial redevelopment sites often prefer to sell “off market”. There are various reasons for this but many spend time and money negotiating with potential purchasers who cannot actually buy the land or they will switch terms at a late stage in the land deal.
Many plot sellers prefer to deal with a broker or joint venture partner who they know is more likely to close the deal and deliver the profits. So many potential residential redevelopment sites are sold “off market”, through a closed network of established developers, main contractors and joint property development partners. Established main contractors have the experience and credibility that is required to obtain the essential property development or bank finance, so they offer an excellent opportunity for site owners who wish to share in the property development profits. They can also provide option agreements where the vendor allows the developer to arrange the planning application. This is often structured so that in exchange for a period of exclusivity in which the developer can purchase the site they arrange for the planning permission and there for secure the planning gain.
February 26, 2010
How to set up a joint venture property development
Joint venture property development are becoming increasingly popular as those who are looking to off load potential residential developments sites are finding it increasingly challenging to achieve their desired asking prices.
So land owners are looking to set up joint ventures with those that have the knowledge experience and track record of delivering past projects. The advantage of a joint venture is that you have a builder on board who is looking to save costs and push the project to completion to gain their share of the developer’s profit. The industry standard for this type of venture is often a 50 / 50 profit share with the land owner putting up the land as security and the developer or main contractor doing the construction or build phase of the project at cost. This helps with the project borrowing and banks are always keen to see an experienced developer or main contractor on the team. The days when banks were happy to fund first time developers are long behind us, and with the property developer funders having a choice of various deals to back, land and site owners are pleased to do a joint venture rather than see their site sold below market value.
February 24, 2010
Opportunities in Commercial property Investment
A recent report has outlined the situation of empty shops in various city centres. Wolverhampton, Bradford, and Sheffield were named among places where there is more than the normal concern. The 2008 / 2009 recession may be one factor to blame as part of the reason for shop closures/ empty shops, but it has also to be considered what affect our shopping patterns that we all now undertake may have on the shops that are now closed.
In Peterborough a fairly large modern enclosed shopping centre known as Queensgate exists, and has been in existence for some years and therefore the long term presence of such can be considered on the area. Queensgate is not only close to the city centre but is also just outside the train station with connections to the North / South / Lincolnshire / the Anglia Region and the Midlands. Queensgate also houses the bus station providing bus services locally, and apart from a good road network in and around Peterborough the city is also close to the A1 Road providing major road access to Peterborough. Queensgate and shopping centres like it and the recession is bound to have an effect on surrounding properties / shops, and part of the solution may be action as outlined for Stoke on Trent below.
The Stoke on Trent area suffered in the second half of the 20th century with the decline of the potteries and coal mining but more recently has seen regeneration, including small but nevertheless valuable property improvements and development schemes including developing empty shops into projects to fit local demands as for example a hairdressing salon with flats being provided above. These projects thus providing much wanted rented accommodation, and providing a mixed use asset for landlords and tenants. No doubt this kind of approach does and can help everyone in many a village, town and city that have vacant and run- down buildings and makes full use of valuable space.
Now with building developments generally in Britain progressing at a less hectic pace than say in 2006/7 it may be a good time to grab the opportunity to carry out work on empty shops/ pubs etc in a village, town, or city near to you to utilise the space by providing flats and commercial premises to meet present day needs. You may be interested in a developing a site/ building in your locality and local people are probably best to choose the right kind of development for site concerned for the area they know well.
February 20, 2010
Heavy hitters in buy-to-let return to the ring
Some of the so called heavy hitters including ex-boxer Andreas Panayiotou are starting their first major residential property purchases for years. Many of the “clever players” sold out in late 2006 early 2007 when they grew increasingly concerned with the very low yields being achieved from both commercial and residential property investments.
There is always a demand for buy to let as many use this investment vehicle to provide a passive income for their retirement. Interestingly there is increasing speculation that some large instructional investors are looking to residential investment property to supply them with higher yielding investments.
February 14, 2010
Building Quotes, Building tenders, Building companies, all continue to fall.
The UK construction industry continues to see the price of their saleable commodity fall, as the price of building quotes and building tenders continues to fall. The knock on affect of these falls in building quotes and tenders is the fall of many building firms. The long period of uncertainty in the property market and the lack of suitable development funding have lead to many long established building companies falling by the way side.
Data has now confirmed the belief of many of the construction industry professionals that the construction industry sector continued to contract in the last quarter of 2009. Many believe we will leave 2010 before there are any signs of positive growth in the construction industry.
There is no doubt that the construction industries work load has been in decline for some time, many new planning schemes and speculative property developments have been either abandoned or placed on hold. The world of speculative property development is being held to ransom by the banking industry which in turn leaves the builders with nothing to build.
February 13, 2010
Property developments stay on track!
In considering commercial and residential developments with a railway connection, it is soon apparent that there is a wide range of railway connected developments that have taken place, and are still taking place. A small development can be just a new build house, or old railway station conversion to either a home/s or a business building. Such small developments can be, and have been progressed on closed (disused) railway branch lines, or even on an existing operational active railway line where a railway building, or small or large sized plot of land is sold, or it could be a redundant level crossing keeper’s house which is no longer required for railway purposes because the level crossing is now an unmanned automated level crossing.
A medium sized development with a railway connection can be a residential development such as the one built at York on the site of the former railway Carriage Works (Train Building Factory).
A very major building/railway development can be something like St. Pancras Railway Station in North London. This was a major development when the station was first built, as it is said to have taken 60 million bricks to build before the first ever train could leave in October, 1868, let alone the recent extremely large development making St.Pancras a major international travel facility of which more is referred to below.
The relatively recent major conversion of St. Pancras to “International” status is very good news for the Midlands and Yorkshire as not only does this railway station continue to serve Derby, Leicester, Nottingham, and Sheffield, and other intermediate locations with its inter-city services, and with local passenger trains providing various connections to many other locations, but also now provides a fast Eurostar train service to Europe. This makes those locations mentioned above, and surrounding locations, extremely attractive areas to live and work and conduct business from which consequentially is likely to cause increasing demand on housing and business developments in the Midlands.