Property developing

Discussion in 'Scotland' started by Clarisson, Mar 6, 2017.

  1. Clarisson

    Clarisson UKBF Newcomer Free Member

    4 0
    Im looking to start a property developing business in the NE scotland.
    Been in the oil industry for 20 + yrs looking to network and see if i can create something different in the area & create jobs for a bright future.
     
    Posted: Mar 6, 2017 By: Clarisson Member since: Mar 6, 2017
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

    13,818 2,953
    Is there money to be made developing property in NE Scotland just now?
     
    Posted: Mar 7, 2017 By: Scalloway Member since: Jun 6, 2010
    #2
  3. Clarisson

    Clarisson UKBF Newcomer Free Member

    4 0
    Yes in the right price & property bracket between 2-300 k but above that you are struggling to sell them developers are paying the LBTT on the higher priced property's just to move them.
    Now is a good time to prospect on plots and wait for the upturn if you can find the right locations.
     
    Posted: Mar 7, 2017 By: Clarisson Member since: Mar 6, 2017
    #3
  4. billmccallum1957

    billmccallum1957 UKBF Ace Full Member

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  5. billmccallum1957

    billmccallum1957 UKBF Ace Full Member

    1,850 395
    Do you have a background in construction or a good network of trusted trades?

    Do you have liquid capital that you can afford to lose?

    As someone who lost a bundle during the 08 crash, I know how much it hurts to invest heavily in development, but the rewards can be high if you get it right.
     
    Posted: Mar 7, 2017 By: billmccallum1957 Member since: Feb 11, 2016
    #5
  6. Clarisson

    Clarisson UKBF Newcomer Free Member

    4 0

    Yes i do have an early background in property development although not on a large scale but project management is something i am competent at and have a network of people i use and trust to do work with.

    I do not see that you will necessarily loose your capital if you go joint venture with the land owners you can achieve the same outcome without paying for the land upfront.
    This can get you started quicker and achieve more (liquid capital) if you can enter an agreement,after all plots are plots if you can sell them from plan you can continue with the same format and build houses on this scale it can provide income for both parties and work for the tradesmen.

    There is a lot of buildings like the ones you have shown up for sale on the market at high prices up & down the north east but as they are not clean sites developers are not keen to spend the money to clear as this impacts on the overall profits and some areas have a ceiling level at which the properties can be sold for also some locations are not ideal not everyone wants to live by a working farm and pay for a luxury house.

    There has been a spate of over sized properties on the market of late fulled by the last round in the offshore industry and these properties are moving slowly since the downturn many people whom move to a new build with a ticket price of between 6-900k have sold up in the boom and moved on as salaries wont support these mortgages in this economic period & brexit uncertainties.

    New affordable housing sells and this is what is lacking unless you have a specific audience that want a specific spec house built then your better off sticking to that at the moment in my opinion because developing high ticket price properties at the moment will tie up capital unless you have a buyer ready to buy off plan.
     
    Posted: Mar 7, 2017 By: Clarisson Member since: Mar 6, 2017
    #6