There will always be constant news of real estate is in doom and gloom due to property repossessions and fluctuation of real estate prices. This could be a cause of alarm for many property investors and real estate developers who sometimes opt out of the market. But is there fire to this smoke?
According to Jarret Willis, real estate is very different from any other investment field because what could seem like the worst time could be the best. The economic situation should not deter real estate developers from purchasing their development sites when their inception. This is because their project will not be ready for rent or sale for 2 to 4 years from when they are starting, and the economic situation could be very different then.
Similarly, a weak market is a buyer's market, and therefore, real estate developers can leverage this time to secure development sites on the best terms.
However, Jarret Willis acknowledges that the business of developing real estate is cyclical worldwide but says that with the right knowledge, you can be a successful real estate developer in any market, whether flat, falling, or rising.
Jarret says that working with future projections of economic conditions in mind allows you to act promptly and build when the market is friendlier. The following factors are some of the market signals that may increase the future opportunities for real estate developers:
1. Increasing number of people who are likely to require the accommodation that real estate developers are building. With the current demographic trends, the upcoming population is more likely to rent rather than buy real estate. Jarret Willis advises that real estate developers find resources to hold real estate development sites during periods of market fluctuation and increase the rent until the markets are more stable.
2. The government is dedicated to making housing affordable and is putting incentives in places such as tax credits and a standard market rate for rent to guarantee this.
3. Pent up demand for housing. Because of the fast-rising population, there is a built-up shortage of housing, and therefore Jarret Willis projects that housing prices are highly likely to rise.
Ultimately, Jarret Willis says that the approach that anyone looking to go into real estate development eventually decides on heavily relies on their financial circumstances and their personal preference.
If you don't have the resources to complete a real estate development project, Jarret Willis suggests the following strategies as alternatives:
- Locate ideal property development sites
- Take out an option on the site.
- Sell the Development Permit Approval to someone who has the resources.
Alternatively, you can employ the services of a mentor or an experienced real estate developer to advise you on the best steps of action. In any case, Jarret Willis affirms that you can always leverage any situation to your advantage. So put your fears to sleep and act now!
