The media is presently full of real estate’ doom and gloom’ – home buying repossessions and arrears are up and property price tags are down… its pretty much as if the’ sky is intending to fall’! This scenario has seen many property developers, and home investors typically, exit the industry – and for those considering getting started in property development, these are scary times indeed.
What looks like probably the worst time to get into real estate development might, in truth, be the best time. Successful real estate developers today recognize that they can use time to the advantage of theirs – their home buying development projects will typically stop being ready for rent or sale for two to 4 years from inception. So if they’ve bought nicely, they are not as likely to be affected by the economic situation at time of purchasing their home buying development site.
In fact, a vulnerable market is a home buying developer’s paradise, because a weak market is a buyer’s marketplace, and one of the very first steps to any home buying development task is securing a viable real estate development website on the best possible terms.
Although we are aware that the real estate development industry is cyclical, and lots of areas of the planet happen to be in a home downturn, we also know from history that experienced home buying developers are successful in any industry – falling, flat or even rising.
We’re working towards what we think the economic conditions will likely be in 12 to thirty six months time. Indeed we ourselves are still active in the marketplace – searching for Council authorization for a variety of real estate development projects. This will give us the occasion to act quickly and create our approved real estate development projects if the market does get buoyant.
It is the opinion of ours that the following industry signals are several of the primary key components that can end up in increased future opportunities, especially for home buying developers:
· The pent up need for housing. In March 2008 top Australian economics forecaster, BIS Shrapnel chief economist Dr Frank Gelber argued that housing prices across Australia will rise by 30 % to forty % over another five years due to the built-up shortages of housing.
· The current Federal Government has stated that they are going to work towards increasing Housing Affordability and also have begun to announce incentives such as Tax Credits of $6000 per year if the housing is rented at 20 % below industry rent.
· We believe that an increasing number of people, in the quite short to medium expression, are very likely to require the rental accommodation that we want to build. This is because of possibly their economic stress (can’t afford to buy a home) and/or market trends (including Gen Ys who are more unlikely to purchase Real Estate).
Even if our’ crystal ball’ is incorrect, we know we have the resources to hold real estate development sites during possible even more market fluctuations to occur, and raising rents are surely helping with that!
Our idea is that this is a golden time to act – possibly an one time in a generation opportunity. Maybe it’s not the time to sell completed property development projects in the instant, but it is definitely a great opportunity to secure the development web site as well as acquire development planning approval. Now this strategy is not for every individual – you have to have the essential information to hold on to the development site and specifically the understanding of home buying development to take advantage of these opportunities.
The most effective approach for anyone contemplating home buying development is going to depend on his or her own personal and financial conditions, but the primary key message here is that you must do something!
There are numerous strategies that small home buying developers are currently using, in case they do not provide the resources to complete a home buying development project at this time, including turning their real estate knowledge into cash by searching for perfect property development sites, maybe removing an option on the web site, and on selling the’ Development Permit Approval’ to somebody that does have the resources.
Successful home buying developers are aware that times of opportunity this way only come along once in a while, and they’re taking action so that they don’t miss the boat.
No matter your immediate financial situation, this’s the ideal time to leverage your property development knowledge into current or future income. If you have some doubts about your ability to do this, or maybe you would like a highly skilled real estate development guide to direct you, act right now to get the understanding and mentoring that you simply need. There is no time to waste!
Adrian Zenere is a Registered Architect and Licensed Home Builder along with his wife Amber they have built a multi million dollar sustainable property portfolio through Home buying Development. Together makelaar enschede run their own architectural practice http://www.archizen.com.au specializing in Holistic Architecture merging eco sustainable development with feng shui concepts and creating unified living that is respectful of the environment of ours. Their projects are regularly featured in the Australian Property Investor, Luxury Home Design, Lifestyle Magazine, Home at yellow and Several newspapers.