mad555

iTrader: (1)

..

mad555

iTrader: (1)

plus no experiance of planners etc so need a step by step guide.

TIA
mad555

Longjing

Planning is kind of critical to the value uplift. What a developer says about it is likely to be optimistic. There's a site locally, derelict for 10 years, that remains that way because the same objections arise every time someone tries to squeeze 3 new houses on it... won't happen, and why should it? Locals' quality of life counts for something, developers getting fat doesn't.

I think asking for a step-by-step guide to making millions in property is a bit hopeful. My advice would be: now is not a good time to borrow for speculative property development. Interest costs are going up and the market is, in the words of property fund manager who I'm working with now, "going a bit funny".

Brendan Hughes

Saxo Boy's looking for a new job, he says he'll go halves with you on the profit

miff13

I deal with a few developers in my job, they will always overestimate the number of houses they can get on a site (by up to 50%), and none of them (despite lurching from cash flow crisis to cash flow crisis) would let a site go if they were certain they could make a decent profit on it.

As stated above it's the wrong time to get into development, times are too uncertain!

LG John

Talk to the planners for your area and gauge what is really possible. If you get a positive response then you could consider buying the land and applying for planning permission for the additional houses. If you are successfully granted planning permission then the value of the land effectively increases overnight.

Whether you actually go ahead and develop the 10 houses is another matter. If you have no experience and little in the way of sound financial backing I'd say not to bother. You should make a tidy profit on the land value and you can punt the land to someone that does have the experience, financing and men in place to build it. Furthermore, you could turn this process around in less than a year and quicker if your planning authority are on the ball. It takes far longer to go from the cradle to the grave in development.

There are plenty of developers that have never built anything in their puff - they simply buy land speculatively in the assumption they can increase its value through gaining consent for it.

IIRC most of your big house builders, etc will look for a profit of around 17%. That is fixed as well - they won't allow much to interfer with it. The liquid part of the deal is the land value so the landowner is usually the one that suffers from things going **** up or from the planners not playing ball fully. Developers can play this game because they secure options to buy that land rather than buying it outright (which they do as well in some cases).

If you buy the land outright, seek to gain planning approval for it and then physically put bricks on the ground then you transfer all of the risk onto yourself. Better to pick a part of the process you feel you are good at and work within it. For example if site management and building profitably was your thing then you'd look for sites with consent and buy them at a price where you know you could could built to a profit.

mad555

iTrader: (1)

to make this clearer,I have the land through a family connection,a few estate agents have looked at the and stated that a developer would get the ammount of houses on it,so instead of selling it I want to develop it myself.+