Working with development and commercial property funding, price is often an obstacle that I come up against. Many people have little understanding of how risk-based pricing works, and it can come as a bit of a shock when pricing is uncovered.
As any developer will know, banks across New Zealand have dropped a couple of belt sizes in the recent years. They’ve moved rapidly from the binge eating of the 5 or so years between 2011 and 2016 straight onto the no-sugar diet. Let’s just hope it doesn’t lead to a sugar crash!
We're covering off some quick things to look out for when doing a development so you don’t get caught high and dry. I'll talk GST, development costs, two key ratios and second tier lenders.
After four years in the making, the new-and-hopefully-improved Auckland Unitary Plan has been released by the Independent Hearings Panel (IHP) and is now up for both public and Council scrutiny.
Investors and first home buyers alike are feeling the price pressure, as the Real Estate Institute of New Zealand presents us with the fact that median house price records all over the country have been smashed.
“Second hand” properties are continuing to rise in value and of course the 30% deposits required to get funding are growing and getting harder to put together… So what other options are there?
Everyone loves a bit of healthy competition - unless it's in the housing market.
Some thoughts on the Unitary Plan: Auckland is a unique city surrounded by so much water and then so much of the inner city has been protected from a planning perspective.
I have been approached by a number of existing ‘buy and hold’ investors wanting to change their strategy. They want to start trading and developing property. But, they have no idea where to begin.
Here I am almost three and a half years into my first decent size property development. Although the end is in sight, it has been painfully slow, like watching paint dry.
I witnessed a transaction recently that sums up the Auckland property market.
Over the past two and half years I’ve dabbled in property development, and are in the process of building 35 houses in Avondale. The end result will be 35 finished houses (of which 90% have been pre-sold) in April 2015.