HPH253 : Would property investors buy sustainable homes? – with Rob Bence
Jun 5, 2019
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Property developer and podcaster Rob Bence discusses the interest of property investors in buying sustainable homes and explores financing options. They also highlight the strategy of selling developments up front and the importance of having the right team in place for property development success.
Investors are increasingly interested in high-performance, sustainable homes that offer a unique experience for tenants.
Having a competent and experienced team is crucial for the success of a property development project.
Deep dives
Exploring a New Construction Project
In this podcast episode, the host discusses his plans for a new construction project and shares some context. He explains that after completing a self-build in 2018, he is now considering a spec development and wants to share his research and experiences with the audience. The goal is to inspire other developers to build high-performance sustainable homes while still making a profit. The host mentions the importance of having strong reasons, such as relocation or downsizing, for embarking on another self-build. He also introduces his guest, Rob Bents from The Property Hub, who will be mentoring him and providing insights.
Investor Interest in High-Performance Homes
The host and his guest discuss the potential interest of property investors in high-performance homes. They emphasize that not all investors prioritize just yield, and some are willing to invest in homes that provide a unique experience for tenants. While high-performance homes may not appeal to all investors, there is a growing demand for properties that are built with sustainability in mind. The host highlights that investors are becoming more serious about providing better service and product quality to tenants. He believes that well-built homes, especially those constructed to higher standards, can offer better capital growth opportunities than poorly built properties.
Finance and Team Considerations in Property Development
The podcast delves into financing options and the importance of having the right team in property development. The host and his guest discuss using peer-to-peer lending and development finance as viable financing options for developers. They caution against relying solely on banks for financing, as their lending criteria may be stringent and may require too much security. The host also asks about selling developments upfront and its impact on the project's success. The guest shares that while selling upfront can provide security and lock in prices, it may not impress lenders significantly. Lastly, they stress the crucial role of having a competent and experienced team in property development to ensure a project's success and minimize potential losses.