The media is currently packed with real estate ‘doom and gloom’ – real house repossessions and arrears are up and real property prices are down… their almost as if the ‘sky is approximately to fall’! This situation has seen many real estate builders, and property investors generally, leave the market – and for those thinking of beginning real property development, they are scary times indeed. http://www.leclubimmobilier.com/
What seems like the worst a chance to get into real estate development can, in reality, be the optimum time. Successful real real estate developers today realize that they can use time for you to their advantage – their real estate development tasks will typically not be prepared for sale or rent for 2 to 4 years from inception. So if they have bought well, they are really less likely to be afflicted by the economical situation at the time of purchasing their real estate development site.
Actually a weak market is a property developer’s paradise, because a fragile market is a potential buyer’s market, and one of the first steps to any real estate development project is securing a viable real estate development site on the best possible terms.
Although we can say that the real estate development business is cyclical, and many areas of the world are in a house economic downturn, we also know from history that knowledgeable real estate developers are successful in any market – falling, flat or growing.
We’re working towards that which we believe the economical conditions will be in doze to 36 months time. Indeed we ourselves are still active in the market – seeking Authorities permission for a quantity of real estate development projects. This gives all of us the possibility to act quickly and build our approved real estate development assignments when the market does indeed become buoyant.
It is our view that the following market signals are some of the key factors that will lead to increased future opportunities, specifically real estate programmers:
? The pent up demand for housing. In Mar 2008 leading Australian economics forecaster, BIS Shrapnel primary economist Dr Frank Gelber argued that housing prices across Australia will climb by 30% to forty percent over the next five years due to built-up crisis of housing.
? The current Authorities has explained that they will work at increasing Housing Affordability and also have begun to announce rewards including Tax Credits of $6000 per year if the housing is leased at 20% below market rent.
? We assume that progressively more people, in the brief to medium term, will probably require the rental accommodation that we intend to build. It is because either their financial stress (can’t manage to acquire a home) and demographic trends (including Gen-Ys who are much less likely to buy Genuine Estate).
Even if our ‘crystal ball’ is inappropriate, we know we certainly have the resources to hold real estate development sites during possible further market changes to come, and increasing rents are certainly assisting get back!
Our belief is that this is a golden time to take action – perhaps an once in a generation opportunity. Maybe it is not the time to sell completed real estate development projects at the instant, but that is definitely a great possibility to secure the development site and obtain development planning endorsement. Now this strategy is not for everyone – you must have the necessary resources to carry the development site and especially the ability of real property development to take good thing about these opportunities.
The best approach for anyone thinking about real estate development will rely upon his or her own personal and financial circumstances, but the key message here is that you must do something!