The media happens to be full of real-estate 'doom and gloom' - real estate investment repossessions and arrears are up and property pricing is down ... its nearly as in the event the 'sky is going to fall'! This example has seen many property developers, and property investors generally, leave the market - and then for those contemplating starting out in real estate development, these are scary times indeed.
What appears like the worst time to get involved with property development can, in fact, be the greatest time. Successful property developers today realize that they may use a chance to their advantage - their real estate development projects will typically not be ready for sale or rent for two to four years from inception. So in case they have bought well, they may be less probably going to be impacted by the economic situation at the time of purchasing their real estate property development site.
The fact is, a weak market is indeed a estate developer's paradise, since a weak industry is a buyer's market, and among the initial steps to the property development project is securing a viable real estate property development site on the perfect terms.
Although we know that the real estate development business is cyclical, and quite a few parts of the planet are in a home downturn, we also know from history that knowledgeable real estate developers are successful in any market - falling, flat or rising.
We're working towards everything you believe the economic conditions are usually in 12 to 36 months time. Indeed we ourselves continue to be active in the marketplace - seeking Council permission for many real estate development projects. This will give us the opportunity to act quickly and make our approved property development projects when the market does become buoyant.
It really is our opinion that the following market signals are the important aspects that can bring about increased future opportunities, specifically for property developers:
·The pent up interest in housing. In March 2008 leading Australian economics forecaster, BIS Shrapnel chief economist Dr Frank Gelber argued that housing prices across Australia will rise by 30% to 40% on the next five years because of the built-up shortages of housing.
·The latest Federal Government has stated that they may work at increasing Housing Affordability and have begun to announce incentives including Tax Credits of $6000 each year in case the housing is rented at 20% below market rent.
·We feel that a lot more people, from the short to medium term, are likely to require the rental accommodation that individuals mean to build. This is caused by either their financial stress (can't manage to get a home) and/or demographic trends (including Gen-Ys that are more unlikely to buy Property).
Regardless if our 'crystal ball' is incorrect, we know we have now the resources to carry real estate property development sites during possible further market fluctuations into the future, and increasing rents are certainly helping using that!
Our belief is always that this is the golden time for you to act - perhaps a once within a generation opportunity. Maybe it is not time to market completed real-estate development projects at this time, but it is certainly an excellent ability to secure the development site and get development planning approval. Now this method not for every individual - you will need the specified resources to support the development site and especially the ability of real-estate development to make use of these opportunities.