Podcast Summary
Understanding the Land Acquisition Process: Rob and Rob to share personal land buying experiences, offer a free discovery webinar, release a new magazine issue, and discuss the government's stamp duty revenue.
Land is a fundamental aspect of the property market, and it's essential for anyone interested in real estate to understand the process of acquiring it. Rob and Rob discussed their upcoming episode where they will share insights from their personal experiences of buying land. They also announced a free discovery webinar where listeners can learn about their businesses and ask questions live. The webinar, which is not a sales event, will take place on October 25, 2022, at 6 PM, and interested individuals can sign up at thepropertyhub.net/discovery. The hosts also mentioned the upcoming issue of their magazine, which they believe is their strongest yet, featuring articles on solving the housing crisis, a review of the last 10 years since the credit crunch, and regular case studies. Lastly, they shared that the government is generating significant revenue from stamp duty.
UK government's stamp duty increase leads to revenue surge despite fewer transactions: The UK government's stamp duty hike for second homes and buy-to-let properties resulted in a 30% revenue increase and an 8% decrease in transactions, impacting homeowners and first-time buyers by limiting property availability.
The UK government's significant increase in stamp duty for second homes and buy-to-let properties has led to a 30% surge in revenue despite a 8% decrease in transactions. This counterintuitive result, which may continue to cool down the property market, also negatively impacts homeowners and first-time buyers by limiting the availability of properties. While the government's actions were intended to generate more revenue and control the property market, it's essential to consider the broader implications on the housing market and those seeking to buy or sell properties. For those interested in finding and buying land, this episode will provide valuable insights. While not a necessary aspect of property investment, the process can be intriguing for those seeking to build from scratch. Rob, who has experience in this area, will share tips and strategies for identifying and acquiring land, making it an essential episode for those pursuing this advanced investment strategy.
Start with refurb projects for valuable learning experiences: New developers should begin with refurb projects for practical experience and to learn essential skills in real estate development, including working with tradespeople and sourcing materials, before moving on to larger projects.
If you're new to real estate development, starting with refurb projects before moving on to buying and building on land is a recommended approach. Refurbs can still present challenges but offer valuable learning experiences, particularly in working with tradespeople and sourcing materials. It's essential to establish your goals and determine the type of land you're after, whether it's for building a few houses or a long-term strategic land play, to ensure a successful project. Remember, the process of finding land is not easy, so being clear on your objectives from the beginning will save you time. While it might be tempting to dive into larger projects right away, taking the time to learn the ropes through refurb projects can set you up for future success.
Securing Financing for Land Projects: A Complex Process: To secure financing for a land project, have a clear plan, sufficient funds, and, if possible, prior experience. Work with a broker to navigate the process and minimize risk for lenders.
Securing financing for a land project requires clear planning and prior experience. Unlike buying a property for rental, financing for land is a more complex process. If you don't have experience, it can be a lengthy and challenging process filled with numerous forms, questions, and legal procedures. The lenders are hesitant to finance a project without a solid track record or a team with extensive experience. Therefore, it is highly recommended to work with a broker to navigate the process and increase the chances of getting financing in a reasonable timescale. The lenders want to minimize their risk and avoid being left with a half-built project. So, before starting the land acquisition process, make sure you have a clear plan, sufficient funds, and, if possible, prior experience to increase your chances of securing financing.
Exploring Land Buying Options: Beyond Commonly Used Platforms: Consider Glenigan for comprehensive land data, work with land brokers or sourcers, network with locals, and use Zoopla's keyword search for potential plots when buying land.
When it comes to finding land for development, there are various tools and methods to consider. While commonly used platforms like Rightmove and Zoopla are useful, a less-known but powerful tool called Glenigan stands out for serious players. Glenigan offers access to every land application across a chosen region, providing extensive detail. However, it comes with a hefty price tag, starting at over £1,000. For those who prefer a more cost-effective approach or require less legwork, working with a land broker or sourcer is an alternative. These professionals can help find options based on your requirements, with payment only due upon commitment to a plot. Networking with locals in your area can also yield valuable insights into available land and planning information. Lastly, platforms like Zoopla can still be utilized in the land buying process by using their keyword search function to find potential plots. Remember, the key is to explore all available options and choose the one that best fits your budget, expertise, and development goals.
Finding Land for Purchase: Using Tools and Doing Thorough Research: Use tools like Superlott and Rightmove to find potential land purchases, but do thorough research to avoid hidden issues. Check the Land Registry for seller's original purchase price and fully cost out the project to avoid surprises.
While using tools like Superlott and Rightmove to find land for purchase is a clever strategy, it's important to be cautious and do thorough research. Land that hasn't sold through these channels for an extended period may have issues, and sellers who list it there might not fully understand the process. Be wary of land at auctions as well, as there's likely a reason it's there. When it comes to buying land, the more information you have beforehand, the better your negotiation position. Use the Land Registry to find out the seller's original purchase price and fully cost out the project to avoid surprises. Similar to buying a property, knowing this information can give you a significant advantage. Additionally, be prepared for potential challenges and have a team or expertise on hand to help navigate them.
Thoroughly investigate ground conditions before land investment: Investigate ground conditions, consider planning status, and keep land cost below 20% of gross development value before investing in land.
Before investing in land, it's crucial to investigate the ground conditions thoroughly. Groundwork is often the most challenging part of a site, and neglecting this aspect can lead to unexpected costs and complications. It's recommended to have professional desktop research or on-site investigations done before purchasing the land to assess potential contamination and foundation types. Additionally, the land cost should ideally not exceed 20% of the gross development value as a rough guide. Planning status is another essential factor to consider, as obtaining necessary permits or understanding existing conditions can significantly impact the project's feasibility and profitability. Overall, land investment requires careful consideration of various factors beyond just the land cost.
Understanding Section 106 agreements and hiring specialists for property development: When buying land for property development, be aware of Section 106 agreements, hire a solicitor specialized in land deals, communicate effectively with the seller, and seek advice from recent buyers to ensure a successful process.
Buying land for property development involves understanding various costs and requirements beyond the land price itself. One such requirement is Section 106 agreements, which local authorities may impose on larger projects, demanding tributes or social housing construction. Planning consultants can help navigate these complexities, especially when starting from scratch with unplanned land. When buying, it's crucial to hire a solicitor specialized in land deals and communicate effectively with the seller regarding financing and legal processes. The legal process can take longer than expected due to financing requirements, but clear communication can help mitigate potential delays. Additionally, gaining knowledge from those who have recently gone through the process can be beneficial, as their experience remains fresh and relatable. Overall, buying land for property development requires careful planning, understanding of local regulations, and effective communication with professionals and stakeholders.
Mick's Real Estate Success Story Inspired by The Tea Robs Podcast: Listening to The Tea Robs podcast led a listener to invest in real estate, rebalance finances, and purchase multiple properties in six months. Ray Dalio's book 'Principles' offers valuable insights on work, life, and economics.
Listening to The Tea Robs podcast inspired a listener named Mick to take action and invest in real estate, leading him to rebalance his finances and purchase multiple properties in just six months. Mick's success story is a testament to the power of taking action on valuable advice. Additionally, Rob recommended the book "Principles" by Ray Dalio, which he's already raving about despite not finishing it yet. Ray Dalio, a successful hedge fund manager and one of the world's wealthiest men, shares valuable insights on work, life, and economics in his book. The podcast hosts highly recommend the video on economic cycles created by Ray Dalio, which is a must-watch resource for anyone involved in financial investments or interested in understanding economics. Overall, the podcast episode emphasizes the importance of taking action on valuable advice and learning from successful individuals like Ray Dalio.
Exciting upcoming episodes of The Property Podcast: Looking forward to discussing property viewings strategies and politics in new episodes, tune in Tuesdays and Thursdays for latest content, check show notes on Property Hub website
The speaker is looking forward to continuing with the current book they're reading and is excited for upcoming episodes of The Property Podcast. In the next episode, they will discuss strategies for successful property viewings, and there will also be a segment on politics. Listeners are encouraged to tune in for these discussions, and they can expect new episodes on Tuesdays and Thursdays. The Property Hub website provides show notes and past episodes for review. Overall, the speaker expresses enthusiasm for the upcoming content and invites listeners to join in the learning experience.
