Are You Truly Prepared For That New Build Project?
When it comes to new property investment, it’s probably not too controversial to admit that buying an existing home tends to be a more convenient option than building, usually. However, that’s not always the case. In the case of a hot developing area with real potential, for instance, you could make plenty of money from building a home that’s better suited to the incoming up-market demographic than existing houses that are leftover from pre-development. But, it’s going to take a lot of effort. How do you make sure you’re ready for it?
An organized and flexible budget
Naturally, building a home is going to be more expensive than selling an existing property, so you are going to need to come in with plenty of funding prepared. There are several ways to finance a home, but having a good portion of the capital at the ready, yourself, can offer you a lot of wiggle room for the complexities that come with planning, laying foundations, building, and so on. Some room for unexpected costs is necessary.
The right location
The area in which you’re going to build the home is likely going to be dictated in part by where the market is. However, ensuring that you’re actually to build there is an important part of the process and should be done well in advance of paying any money towards the construction team. Finding land for sale and getting to grips with any regulations or building codes that you have to follow is all essential before a single brick gets laid.
Make sure you have the right team
The team you use with for renovating or extending homes as usual might not be as qualified to build a brand new house as they are for your other projects. Sticking with reliable teams is good, but it’s more important to ensure you have a team qualified for the specific project you’re aiming at, so a construction team that has experience in building custom homes is going to be much more appropriate. Make sure they are insured, certified, come with plenty of recommendations, and have specific experience in building the kind of home you’re trying to invest in.
An idea of which audience you’re aiming at
If you want to make the best investment possible, then you need to be targeting a specific market and be addressing the needs of that market. For instance, if you’re aiming to sell to a family, then choosing a location that’s close to transport links, schools, retail areas, and the like might one of the most important factors in the project. For luxury properties, it tends to be more about amenities and lavish features that typically don’t market very well to other audiences. Get to know your market and plan accordingly.
New builds are costly and difficult projects, but in the right circumstances, they are some of the most profitable investments around. Ensure you’re ready to handle it so you don’t get trapped in a project that grows too complex.