The truth about New Build Property
Hi, I’m Brett Wood, Managing Director of YourPropertyClub.com. We are an new build property company specialising in development throughout the UK and Spain. So you’re interested in the truth about new build. Well read on:-
Yes, new build property is still available and developers are happy to pass on discounts for a couple of reasons.
- At the start of the process, they often need to secure seed capital to get funding for their new build property. Their bankers will require they show a certain amount of sales off the plan. The developer can either invest in marketing directly to the general public or offer a discount to a property investment company like ours with access to active investors. For this they are happy to pass on a discount that they would normally lose to marketing.
- Developers need to achieve sales targets! If an area sales manager has a sales target to achieve they may pass a number of new build plots to a property investment company to sell quickly. In return for the short timeframe they'll offer great discounts.
- At the end of the process, the developer will normally have sold most of the new build plots and has only a few plots left which are eating into their precious profits through their onerous holding costs. They'll pass these to a property investment company to sell quickly and allow the developer to close the sales office and complete the entire new build project. These offer a quick turnaround to completion and make "flipping" easy as you are selling on a completed new build property.
So why can't you go to the developer and get these new build discounts directly?
This answer is quite simple: volume and hassle.
It takes the developer roughly the same amount of time to deal with you as an individual buying one new build property as it does a property investment company buying ten or more. Obviously a company purchasing ten simultaneously is of more value (from a profit and partnership perspective) than you buying just the one. It's for this reason that the developer is happy to negotiate bulk discounts with property investment companies but not with individuals.
Additionally, Your Property Club has strong links with many developers who we have built considerable trust with. They know that when we take 10 or 20 plots, they are guaranteed to be sold because if for whatever reason we cannot sell it to our clients then we buy them.
WARNING: Make sure it's a real discount first!
Before you get too excited about any 10-25% new build discounts being marketed on the web, you need to understand what an "inflated valuation" on a new build property is.
In many cases, both builders and property investment clubs can inflate the actual true market valuation of the property in order to advertise discounts off this inflated valuation. In some cases the inflated price can be 10-15% higher than the true market valuation.
Luckily, there's a simple way to protect yourself.
Introducing: The Your Property Club 89 Point Due Diligence checklist
Every single new build property we offer comes with its own 89 point due diligence checklist. It's all the hard work, all done for you. It contains 89 specific questions that we ask of every new build development before we agree to sell it. (In fact over the past 2 years we've added several more questions.) These questions cover comparative values from the land registry, websites and local agents, comparative rentals from local letting agents, crime, flood levels, local supermarkets, local schools, the history of the area, future plans for the area, distance to transport links, major investment, major employers, available plots. The list goes on and on.
This all means: we do the hard work so you don't have to...
To conduct this level of due diligence and research, we've hired some of the finest property scouts in the new build property business to drive the length and breath of the country for us and search out the best performing new build properties, the best value deals and the most promising up and coming areas.
Their brief is to provide us with detailed, on-the-ground research of each local area they investigate. We then compare this information with our own, even more detailed research into local councils, governments and community groups. All this goes into the mix to create an amazingly detailed picture of the future potential for both equity growth and the letting of your investment.
So, to give you an idea of how stringent our property filter is—our property scouts will examine up to 20 new build developments each and every week. They will immediately filter out 18 or 19 of these as unsuitable, bring the remaining ones back to us onto which are then subject to our rigorous due diligence process.
If you'd like to find out exactly which investments have recently passed the "unreasonable" standards we set, simply fill out the brief membership form below.
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Let's get this relationship started!
To get you started I've packaged up the 27 most closely guarded property investment secrets into a small booklet. This will give you a great introduction to our overriding philosophy called 'Set and Forget' and a number of other guiding principles.
You'll learn the most important questions to ask your mortgage broker, and the four little-known phases of the property market and how to use them to your advantage. I'll tell you about the myth of property 'hotspots' and how to find winning property almost anywhere.
Download it instantly, below:
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Why not take a moment to learn more about us and our experienced new build team? We're looking forward to supporting you to build your own portfolio from 0-10 properties.
So give us a call, now, on 0207 812 1255!
Live with passion,
Brett M. Wood
Managing Director
YourPropertyClub.com Ltd
