Trends in Multi-Family Property Development

All investment fields are cyclical, but perhaps none more so than real estate. With job markets constantly evolving, population trends always fluctuating, and a host of other factors to consider, real estate investing is all about knowing the trends and trying to find a way to get in front of them. Here’s a quick look at a few trends in the area of multi-family property development.

Millennials on the Move

Millennials are finally moving out of their parents’ homes! While parents across the nation rejoice that their nest is finally becoming empty, it also means that there’s a new group of housing customers looking for a place to call home. A large number of millennials are moving for work and opting to rent instead of buy with the plan in mind to relocate for better jobs when they become available. That means that an entire new generation of people are considering moving into multi-family properties.

Baby Boomers are Downsizing

Since their children are getting out from under their roofs, baby boomers are realizing that they no longer need to pay a monthly mortgage on that 4 bedroom, 2 bath home that they bought when their first child came along. NHMC believes that boomers will spend the next decade looking for over 4 million new apartments. Not only are the children looking at apartment living, but so are the parents.

Secondary Markets are Growing

Land in major metropolitan areas (New York, Chicago, Los Angeles) is still incredibly expensive. If you already own an investment property in those areas, you may already be dealing with the fact that it’s hard to consistently collect rent there. Fortunately, there are still big cities that are growing but have not reached the point of being unaffordable. If you can’t afford investment property in Dallas, TX, consider looking in Austin instead. Other large cities such as Salt Lake City, UT and St. Louis, MO are other secondary markets on an upward trend.

You can see a good return on your multi-family property investment as long as you take the necessary steps to educate yourself and act on the trends that are already taking place. Get ahead of those trends and watch out for the next ones that will undoubtedly change the market again.

This article was originally published on noelsurin.co.uk

Tips to Success in Property Development

When it comes to careers in real estate, most people think of either selling, flipping or investment. But there is another large market of potential for those who have the budget and detail-oriented mindset necessary to succeed: property development.

Unlike investing, real estate development focuses on creating new communities and structures from the ground up. Selecting the property itself is one of the most important elements, as failure to predict a neighborhood’s success can lead to devastating losses. However, with the right amount of preparation and pragmatism, a person may find property development to be a highly lucrative venture.

Research Types of Development

Before launching into property development, it’s crucial to understand how residential differentiates from commercial and so on. There are different laws and regulations for each, and the types of properties you decide to develop will greatly impact how much you ultimately earn.

The ability to recognize a demand in an undeveloped area and answer it is one of the best ways to find success in property development; by gaining a stronger understanding on the various types of real estate development, you’ll be better equipped to select the right type of property and subsequent buildings.

Build a Trust-worthy Team

A property developer has to be able to collaborate with a large team of professionals. From contractors to interior designers, good property development is an all-hands-on-deck field. Some developers want to be more involved than others; you may decide that you’re interested in drafting the general concept of the property and let professionals bring your vision to life, or you could be invested in every step of the development.

No matter how engrossed you intend to be in the process, you have to build a solid network of professionals you can rely on to get their jobs done.

Be Prepared for Financial Loss

In the beginning, property developers always take a hit. Money won’t roll in for a while, even if you manage to have a piece of land developed and ready for use in under a year. It’s important to understand not only how much property development will cost up-front but also how your personal life will be impacted if profit doesn’t come as quickly as you’d hoped.

Although this only covers the absolute basics of property development, the key takeaway is that research and patience should always be prioritized over profit.

This article was originally published on noelsurin.co.uk

Property Development: Know the Risks

The real estate industry is one of the most suitable investment opportunities for people with a taste of property development. Like any other business, however, real estate development is plagued with various risks that developers should be well aware of. Each of the three stages of property development has plenty of obstacles that may impede the developer’s ability to succeed in the long term. However, when approached with a keen eye, property developers can easily succeed in the sector. Here are some notable risks and how to maneuver them.

Capital and financial risks

Real estate developments are capital-intensive and may require the developer to acquire credit from financial institutions. This is the riskiest step as it may lead the developer into significant liabilities in the form of debt. The developers should focus on balancing the credit risk with the proper analysis and evaluation of the suitability of the investment to ensure that the returns far outweigh the risks. Before taking any credit, it is essential to evaluate the availability of collateral to prevent the risk of going bankrupt and foreclosure.

Industry risks

The entire real estate market is quite volatile as property values go up and down as dictated by numerous factors and market shocks. As a real estate developer, one must be well aware of the particular market invested in, the factors that affect the industry in general and come up with strategies of mitigating such market risks. One should invest in diversified property types, such as single-family and multi-family properties.

Marketing risks

Even after development, real estate owners must invest in proper marketing to ensure full occupancy of the properties. Sometimes, properties may be built and marketed just right, yet not attract 100 percent occupancy for quick returns to be enjoyed. The developer must, therefore, invest in guaranteed property marketing strategies and target the right market to eliminate any instance of negative cash flow.

Depreciation and occupancy risks

Once properties have been completed and occupied, they face additional risks of bad occupancy and structural depreciation. Some tenants may fail to commit themselves to the lease agreement, including failing to remit their rent per the lease agreement. This may haunt the Investor as he or she may lose valuable revenue at the point in time when it is required. Also, properties do undergo progressive depreciation, primarily due to structural issues, thereby requiring progressive maintenance.

Originally published on NoelSurin.co.uk.

Sustainability and Property Development: Going Green Is In Demand And Profitable In Real Estate

Sustainability Through Property Development | Noel Surin

Many real estate investors and property developers have already realized that sustainability is an important aspect of a new investment or development. This is because going green is becoming increasingly in demand by home buyers and renters. Even local, state, and national governments are encouraging the building of green buildings. Smart investors and developers must realize this and take advantage of the opportunities posed by this sustainability shift in real estate.

The good news for developers and investors is that people are willing to pay more for eco-friendly features in homes and apartments. This means that you can satisfy their demand and make a tidy profit in the process as well. Homebuilders should especially look at things like energy-efficient appliances, windows, and insulation.

You do not have to be a builder to initiate new green features into a property. Existing multi-family dwellings can have older, less efficient lighting changed to more efficient LED lighting in buildings. Old appliances can be replaced with newer energy-efficient ones. A recycling program can be started at an apartment complex. Other measures that can be taken are adding insulation and maintaining water heaters.

Real estate investors, owners, and managers must also realize that the upcoming generation will often demand sustainability in housing. In order to capture the millennial generation and generation Z, properties must market their green features. Marketing sustainability initiatives is also a great way to differentiate your property from other, less sustainable developments. If you can get LEED certification, then you will definitely want to market that your building has the highest level of sustainability certification available from the US Green Building Council.

Building green housing is also viewed as being socially responsible. This social responsibility and environmental awareness does come at an increased price, however. There needs to be a larger, upfront investment.

In order to offset the higher upfront costs of using energy-efficient appliances and eco-friendly building materials, developers and investors are encouraged to try and take advantage of tax incentives offered by local, state, and national governments. The more substantial upfront costs can also be viewed as an investment in of itself. A more efficient and eco-friendly building will have fewer upkeep costs in the long run. This will mean less maintenance expense, and fewer upgrades will have to be done later on.

Originally posted on NoelSurin.co.uk on July 23, 2019.

What Buyers Want in Newer Homes

Whether one is considering selling, buying, or building a new home, it is helpful to be aware of which layout trends and house features buyers most desire. The home buyers of today are interested in house plan options that are convenient and that help them remain organized, live comfortably throughout life’s stages, and keep low utility costs.

Move-in Ready Homes

Most buyers are interested in properties that are turnkey homes, or move-in ready. These require minimal to low work on the end of the buyers. Move-in ready homes feature updated appliances, a roof that is new or free of damage, HVAC systems, and have gone through inspections and passed without issues. These properties are preferred by buyers due to taking the hassle out of negotiations.

Hardwood Flooring

Hardwood flooring is thought of as a bling feature and is wanted by 87% of buyers today, making it one of the most wanted features in a new home. Because they are durable, long-lasting, and easy to clean, hardwood floors suit any home style as a great feature.

Storage in the Garage

Especially for first-time buyers, owning a house is the chance to enjoy more space after a long stretch of apartment life. This is why 80% of house buyers desire a large garage with plenty of storage space. Across all of the demographics, buyers are drawn to this feature because it is simpler to access those items stored in a garage than it is to get things from a basement or attic.

Open Floor Plans

All of the demographics also seek after open floor plans. The vast majority, nearly 84%, of new houses feature this aspect. Fewer walls acting as barriers between the living room, kitchen, dining room, as well as other areas mean a greater fluidity within the home, making free navigation easy for residents and guests when entertaining.

Laundry Rooms

Even more popular than hardwood floors and fancy living spaces outdoors are laundry rooms. These take piles of dirty clothes or hampers of clean ones out of sight and neatly tucked away in a room that can also double as a mudroom. Buyers want those dirty clothes behind a door that can be closed and addressed when time is available.

Tailoring the homes you build to the needs and wants of the modern real estate buyer will ensure that your project is as successful as it can possibly be.

Originally posted on NoelSurin.co.uk on June 28, 2019.

The Best UK Cities for Property Development in 2019

Strong rental yields and capital growth always sound great, and in 2019, the U.K. is full of incredible property investment hotspots. Of course, affordable prices matter, and at the moment, some cities fare better than others. Here are the Best U.K. Cities for Property Development in 2019:

1. Birmingham

The city is a great one to invest in as it is a happening college town with five universities located there. In addition, Birmingham is quite the commercial hub next to London with major corporations like Deutsche Bank and HSBC rooted there. A lot of projects have been in the works, including the development of High-Speed Rail 2 and luxury residential developments like 105 Broad Street and St. Martin’s Place.

2. Manchester

This is another young folks’ town that offers good employment opportunities. Manchester is very popular and won the title of ‘Best UK City to Live’ in 2016. The city features increasing rents and home prices because of high tenant demand. It’s a bustling city with good transport links and an active social scene.

3. Liverpool

The famous city of The Beatles boasts the fastest-growing economy in the UK. Liverpool is another fabulous city to consider for investment as huge developments are coming to fruition. For instance, Liverpool Waters project is a 30-year plan that is taking historic waterfront dockland and turning it into a multi-billion dollar high quality, mixed-use development. That means more jobs to the city and new businesses moving in.

4. Edinburgh

The Scottish capital is another smart city with four universities based there. Edinburgh is on the move and attracting global giants like Amazon and Travelodge to its community. During April 2018, Edinburgh’s property prices had jumped up 12 percent on the previous year. It’s a hot place to live with one-bedroom flats selling in less than two weeks. That’s quicker than any other type of property in East Central Scotland.

5. Leicester

The “Greater City” of the Midlands offers another amazing 2019 investment opportunity. Leicester happens to have the ideal location in the heart of the U.K., making it a distinctive multi-lingual workforce. The city of 348,000 is only four hours away from mainland Europe and boasts tight cultural links with Asia. Property price growth since 2013 is at 38.5 percent.

If you’re new to property development, or are looking to expand your business into other cities, the five above are great options.

Originally published on NoelSurin.co.uk on May 28, 2019.