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jakeburgess

New Build Developments

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Hi Everyone,

I have a question for any new build developers out there: Do you think now is a good time to start developing?

I ask as I am hoping to develop out a small plot of land into residential housing with a view of the development taking around a year to complete, but with the increased whispers of a crash I am unsure whether now, or the coming months, would be a good time to start such a project.

Be great to hear your advice.

Cheers :) 

Jake

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I am also wondering the same, albeit have different project in mind. Although I'd love to do ground up, just not yet as am starting out.

Currently looking into a typical BRR. However the main risk I see is being caught mid project. If I buy now while high, begin carrying out renovation works, then during this time the prices fall, my revaluation at the end of the works will then come in under what I need it to be to make any meaningful profit. Sure I may be able to get a tenant at the end of it as lending for purchasers may be different, stamp duty holiday ended, help to buy incentive changes, thus more having to rent (possibly). But it's the potential for drops while in mid stage of a project which concerns me the most.

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Hi,

I think its probably impossible to pre empt market conditions, but if we did dip couldn't you rent them out and wait for an increase? Alternatively couldn't you strike up a deal with the local authority or a housing association to take them off you either as a purchase or as a lease deal? 

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