How To Find The Right Property For Development

In the world of property development, one of the most critical decisions you’ll make is selecting the right property or site for your project. If you’re looking to build a new home, you’re probably on the hunt for newer, better ways to find sites for development. The success of your venture heavily depends on the location and suitability of the site you choose. If you don’t research the area and find out what type of property is in the most demand, then you could end up holding onto a property that simply won’t sell. Here at BLG we explore some top tips on how to find the perfect property and area for development.

Market Research

Before embarking on a search for sites, your expectation will need to be researching many sites before finding a site that works, as there are many sites where development is unviable. Thoroughly investigate the real estate landscape within your intended location. Identify regions with growth prospects, strong demand, and favourable economic conditions. The choice of a promising location can have a substantial impact on the success of your project.

Inadequate research may lead to complications when selling or renting the property. Different areas are better suited to specific types of development. For instance, urban areas often prove conducive to building apartments and one or two-bedroom homes. Prior to breaking ground, it is imperative to conduct comprehensive area research, including an understanding of the property types in demand and their associated average prices. Addressing market gaps increases the likelihood of selling your developments and achieving profitability.

Network & Collaborate

Networking and collaboration are crucial aspects of finding the right property for development. Building relationships with local real estate agents, property developers, and professionals in the industry can open doors to valuable opportunities and resources. Here’s an expanded look at how to network and collaborate effectively:

Connect With Local Real Estate Agents

Local real estate agents are often the first to know about new properties coming onto the market. They can provide you with listings that match your criteria and help you navigate the buying process. Meet with several agents, express your goals, and maintain open communication with them.

Engage With Property Developers

Property developers, especially those with experience in your target market, can offer insights into the best areas for development. They may also have off-market properties or partnership opportunities. Attend industry events, seminars, and conferences to meet and learn from experienced developers.

Attend Real Estate & Development Events

Networking events, real estate expos, and local business gatherings are excellent opportunities to meet potential partners and collaborators. Engage in conversations, share your goals, and be open to learning from others in the field.

Online Platforms & Real Estate Listings

Utilise online resources to search for properties. Websites like Rightmove, Zoopla, and OnTheMarket, as mentioned, can help you find listings in your desired areas. Set up email alerts to receive notifications of new listings that meet your criteria.

Social Media & Forums

Participate in social media groups, forums, and discussion boards related to real estate and property development. These platforms can be a source of valuable information, and you can connect with professionals and enthusiasts who share your interests.

Local Government & Planning Departments

Establish a good working relationship with local government officials and planning departments. They can provide valuable information about zoning changes, future development plans, and potential incentives for your projects.

Visit Potential Sites

Don’t rely solely on online information, visiting potential development sites in person is an essential step in the property search process. When you visit a property in person, you can evaluate its physical condition, which may not always be accurately represented in online listings. Inspect the existing structures, infrastructure, and any potential issues, such as structural damage, mould, or environmental concerns.

Furthermore, being on-site allows you to assess the property’s location more thoroughly. You can gauge the proximity to essential amenities, transportation hubs, schools, parks, and shopping centres. Understanding the neighbourhood and its growth potential is critical for a successful development project. Sometimes, a gut feeling, or local knowledge gained from visiting a site can be invaluable. Your instincts and the information you gather during a visit can help you make a more informed choice.

Auctions

Another great approach to discovering property development prospects involves attending a property auction. It’s often possible to acquire the auction catalogue in advance, allowing you to conduct the necessary research before participating in the auction event. Even if a property appears to be attractively priced, it could potentially be in a problematic area or have unfavourable neighbours, making it challenging to rent or sell in the future.

A variety of property types may be included in the listings, including those ready for immediate development, those in need of renovation or refurbishment, and opportunities for land development. It’s advisable to enter the auction with a predetermined budget in mind and avoid getting caught up in the excitement of the auction atmosphere.

Analyse Costs

Always make sure you evaluate the expenses associated with property acquisition, encompassing the purchase price, legal fees, and potential renovation or development costs. Ensure that the property aligns with your financial plan. Identifying the most lucrative development opportunity is a challenging task, heavily contingent on the location you intend to develop.

When constructing within urban or city centres, you typically have the capacity to charge higher rates per unit, but the development process is likely to incur higher costs. Conversely, suburban homes may have a somewhat lower cost per unit compared to urban areas, but they could yield larger profit margins per unit, ultimately resulting in greater overall profits. Lastly, apartments tend to generate more substantial profits since you can accommodate a greater number of units on the same amount of land, which proves especially advantageous in areas where land availability is limited.

Environmental Considerations

Evaluate any environmental factors that may affect your development, such as contamination, flood risk, planning permissions or natural preservation areas. These factors can significantly impact your project’s feasibility. You need to understand the different types of land, from farmland, industrial, greenbelt or brownfield. What they offer, and their limitations before deciding on making a purchase.

Finance With BLG

Finding the right property is a crucial step in your property development journey. Taking the time to research, evaluate, and select the best property for your project can lead to a more successful and profitable development. BLG are a leading lending specialist in property development finance, who’s expertise, support and guidance can get your projects off the ground successfully. Contact BLG today.

WHAT OUR CUSTOMERS SAY ABOUT US

"A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

“We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

“As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

“I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

"From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

“I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

“A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

“Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

“We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

“Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

“We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

“All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

“With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

“We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

“We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

“BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

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