House price figures indicate that there are big discrepancies in values depending on which area you look at.
While there were reports at the end of 2018 that the UK’s house price boom was slowing, some areas remain more buoyant than others.
Just as exploring the potential of developing property is very much about choice, so the products that developers can access for funding their projects can vary at great deal.
What are the choices for property developers and can property retain its business potential in uncertain times?
Choosing Your Funding
Alongside the essential research you must do, so that you thoroughly understand the potential for your development, there is the critical issue of how you fund it.
Properties and the areas they are located in can vary widely. Similarly, there is no single, fixed solution for funding property development.
What is important is that the funding product, and its supplier, are appropriate to the needs and circumstances of the property developer
There are different ways to structure development projects, for instance. This can depend on the resources of the developer, and their ability to manage repayments.
While there are specialist commercial and buy to let mortgages, there are also:
- Short-term bridging loans
- Investment funding
- Refurbishment loans
It comes down to the nature of your project, and accessing the right kind of product that will suit it, and you. Different companies have varying appetites for how and what they are prepared to lend.
What will encourage developers is having access to and knowledge of a range of finance options, including various alternatives.
You want the confidence that you are seeing all the appropriate choices in front of you. Ideally then, you should also have the kind of expert support and insight that will help you match your funding product with your specific project.
Is Property Still a Good Opportunity?
2020 promises to be a year of uncertainty for the UK, but it also will mean opportunities, for those developers who find the right way in.
Interest rates are still very low, so investors should be able to secure the low-cost financing they need. Above all though, they must find the right product for their funding.