Investing in residential development requires expertise and looking at the feasibility and viability of the residential development. But just because the process of investing in residential development sounds difficult, does not mean that you should compromise on your time, values or money when investing. Overall, the residential sector is far larger than any other asset class in the UK and delivers better long-term value growth than any other investment asset, offering better returns for less risk. This is why it is important to never compromise when investing in residential development, as it has been the best performing investment asset over most time. In addition to this, the rise of the generation renters (meaning access to mortgages is harder) and longevity, migration and higher-birth rates means the demand for housing and residential developments will continue to grow, particularly as housing supply is currently quite low.
Whether it is your values, or your money, building an investment portfolio in residential development should not lead you to compromise either. A developer carries out work to build, convert or renovate a property with the view of selling it, whereas an investor is looking to get a tenant into the property to pay rent. Although there can be a lot of crossover between the two, it is important to understand the difference so you can set sight on your end goals. Both the developer and investor’s end goal is ultimately to make money.
Providing the developer has an experienced team of construction and residential development workers, time should not be an issue, however if a residential development you have sight of investing in keeps being pushed back, you could be missing out on other opportunities. Fawkes & Reece offer recruitment solutions to the leading construction and residential developments, and have the knowledge of certain areas of residential development nationwide. Looking for construction and residential development workers from companies that are experts in the field, such as Fawkes & Reece, is the best way to ensure the job is done properly and in sufficient time. The longer you have to wait for a property and the more you have to compromise in terms of time, the more money you are likely to lose/the longer you have to wait to begin making money from tenants’ rent. On top of this, prospective tenants may have moved elsewhere due to an excessive wait for the build to be completed.
Sustainable investing is the most important part of investing in residential development, by fulfilling the needs at present without compromising the needs of the future. Residential developments located close to transport links, within commuting distance to London or other big cities and in urban hub locations develop a long-term desirability for both investors and residents. Developments in areas such as these are important in terms of growth in value and provide optimum returns. It is important to not compromise your money when it comes to investing in residential development as the housing market is constantly fluctuating. Finding an experienced investment team, that has knowledge of certain areas and can identify development opportunities, as well as being able to utilise key international markets such as in Dubai and Hong Kong, is just one of the best ways of not compromising your investment. Compromising when investing in residential development can lead to a loss of your money.
Establishing a budget ensures that your investment does not financially over-stretch you or result in you losing money. Once the budget is set, it’s time to see what properties are out there, but it is always important to think with your head rather than your heart. When investing in properties, it is important to know your target market, and even if there isn’t anything available at that moment in time, it is important not to compromise by taking on something that you do not really have much knowledge about. This could quite quickly lead to your downfall, as you may end up overpaying for your investment as you might not know about a certain area or type of property. Also, looking for investment opportunities and selling/renting properties at certain times of the year is important. Christmas and the summer holidays are notoriously quiet, so if you’re ready to invest around that time, it might be worth waiting for the right property to come up in the spring or autumn when the market is busier, rather than compromising and settling for something you didn’t want.
Quite simply, compromising on a residential development investment is a sure-fire way to lose money. Whether it’s on the property itself or whether you’ve spent out of your financial budget, it is important to never compromise when investing in residential development.