Kacadet Property Development

Kev Moore asked:


Cyprus property developer numbers have increased dramatically over the last five years as the demand for apartments and villas continues to outstrip the supply. As always property or real estate as it is also known remains a solid long term investment traditionally yielding returns far in excess of money in the bank. Holiday property is the latest boom market and many a property developer in Cyprus has grown wealthy on the back of this fast paced market. This is good news for the would be Cyprus property purchaser looking for either an apartment or a luxury Cyprus apartment.

In all rapidly expanding property markets there are always bargains to be had should the astute property speculator know just where to look for them. The Cyprus property market is no exception even though demand is high in most parts of the Island. There is always a certain amount of speculating going on in such a fast paced market with investors and Cyprus property developer businesses both needing to “turn over” their investments to plow into the next project. Out of just such conditions evolve what some term as “motivated buyers” or more precisely people who need to sell.

Dispite the boom and the demand there will always be those who need to move quickly to release capital for one reason or another. The trick is to seek them out and be ready to move on the deal straight away. These Cyprus property developers will not be interested in Mr and Mrs ditherer who are “thinking” of buying a property in Cyprus but need to arrange their finances or wait for Auntie flow to pop her clogs.They need cash so if you have the funds lined up you are right there at the top of the property ladder so to speak. The prime properties are usually on developments that are nearly finished but some apartments or villas remain unsold for whatever reason and the developer needs to move resources to the next project.

There will also be properties that were originally purchased “off plan” by property investors using borrowed money.That money may possibly have been loaned on interest only so the repayments will be eating into the profits on a daily basis. Both the Cyprus property developer and the speculators will be feeling the need to move these properties on A.S.A.P. By keeping your eyes peeled for these kind of properties you are likely to make some substantial savings and hopefully net yourself some free extras into the bargain.

If you are prepared to barter with the Cyprus property developer they may even include such things as white goods in the kitchen and air conditioning units in some of the rooms too. Remember these guys are not “hard up” by any stretch of the imagination so there will always be some room to move in any negotiations. Don’t be afraid to make an offer because they can only say no and there will always be another Cyprus property developer elsewhere ready to do a deal with you. If you don’t find what you are looking for first off just follow the same routine with another property until you get a deal that suits your budget.

Cyprus property is probably amongst some of the most beautiful in the Mediterranean area which is one of the reasons it is in such high demand. An apartment or villa in Cyprus will provide you and your family with years of sun filled holidays whilst the equity in your property continues to grow. Many owners are making the most of their investment by tapping into the huge Cyprus holiday rental market that is also growing out of this property boom. Whatever you decide to do about fulfilling your dreams of owning a holiday home be sure to check out some Cyprus property developer bargains soon.

Kev Moore asked:


Should you be seriously considering the purchase of property in Cyprus you could find it advantagous to deal directly with the Cyprus property developer rather than working with an agent or property broker. For most Cyprus property virgins the initial contact would most likely be through an advert on the internet or following a visit to an overseas property fair. If this is the case the odds are pretty high that the person or company they are dealing with is the agent rather than the Cyprus property developer themself. It is highly unusual for a developer to attend overseas property fairs with most of them choosing instead to operate through a network of Cyprus property agents or consultants as some are now labeling themselves.

There is nothing wrong or illegal in the way that the majority of these establishments operate but it is only fair that you be made aware they are not in fact the owners of any of the Cyprus property being offered. The Cyprus property developer will be paying a sizable commission to these guys for every property they sell and that will be ultimately financed by the buyer. It therefore makes sense to “cut out” the middle man if possible and save the cost of that commission. The truth is that Cyprus property developers do exactly what it says on the tin. Develop property in Cyprus. In other words they are real good at developing whilst happy to leave the marketing and selling to the agents.

If you could find and contact the developer yourself without going through the agents you would most certainly be assured of a better deal on your Cyprus apartment or villa. The trick of course is in finding the right Cyprus property developer in the right area who is building the kind of property you want. This of course involves doing some leg work but then again wouldn’t you be prepared to put in a little effort if it was going to save you several thousand pounds? We are not talking about pocket change here but serious mullah, dosh or whatever you choose to call it.

Why not combine a holiday with your property search then get a real feel of the different parts of Cyprus and all the different types of property available. The great news is that the money you take out of the Cyprus property agents pocket will more than cover your holiday expenses so you have nothing to lose. Hire a car, get out the map and off you jolly well go! Once you have decided on your budget and the area you want to buy in it’s time to pin down a Cyprus property developer who is building or about to build the kind of property you would want to buy.

Doing a search for”Cyprus property developer” on Google will yield a list as long as your arm but you will need to do a little weeding out. Some of the links will lead to yet more Cyprus property agents acting on behalf of the developers so you can discount them straight off. Work your way through the rest and identify which one’s are closest to the area in which you want to buy in and find out where their offices are located. Once you find a Cyprus property developer that matches your needs ask for the location of any developments they have recently completed and go take a look for yourself. If the properties look good and the standard of finish is impressive you should literally start knocking on some doors. Ask the recent buyers what kind of a service the Cyprus property developer gives especially in terms of snagging and after care.

Provided everything pans out you are good to go! Remember that the developer is saving big commission fees so there is plenty of room to manoeuvre when it comes down to the nitty gritty. These “poor” hard bitten Cyprus property developers are making millions from the booming market so don’t be afraid to barter with them. If you don’t get the deal you want there is always another developer down the road eager to relieve you of your hard earned cash. When a final price is settled upon STOP! Now is the time to give the impression you are cooling off on the deal. The developer won’t want you to walk away so ask if there is any way he can “sweeten” the deal for you? Your aim should be to have included in the sale price all the white goods for the kitchen and air conditioning units in all the rooms. If he goes for it then well done you have found a great Cyprus property developer.

Sean Horton asked:


The easiest way to learn how to finance property development is to go online with a specialist website. A website such as this will offer all the information needed for you to understand what you are taking on and how to get the best deal. By choosing to go with a broker when it comes to taking out borrowing you can save time and money even with the fees that you will have to pay.

Property development finance can be taken out as commercial or residential loans depending on the project. Each will be based on the individual’s circumstances which will determine how much you will pay when it comes to the interest rates. Interest rates will usually fall between 1.5% and 2.5% above the base rate which is set out by the Bank of England. Factors which are taken into account when setting the rate will include the experience one has when it comes to property development. They will also be based on the industry sector at the time and the proposal you are putting forward for the loan.

A broker will be able to explain and work out a proposal with you which includes the valuation of the property you are interested in. Lenders will be able to work quicker if a broker has helped to set out the proposal and it has been validated. This will also get the project off to the best start possible and make things go more smoothly. Learning how to finance property development is not the easiest of things to understand and it is essential you take all the advice you possibly can.

When it comes to amount a lender will allow you to borrow then this will be based on the loan to project costs. These are influenced by the gross property development values which are projected. However you can expect around 70% to 75% of the price of purchase and the costs of building. Some lenders are prepared to give 100% funding but you will have to meet certain criteria and have an excellent track record in property development.

Usually the amount you will need to borrow will be in the region of hundreds of thousands of pounds and due to this lenders offer an interest only loan. What this means is that you will borrow the amount and then pay only the interest which this accumulates over the term of the loan. However the capitol will have to be repaid in full once the loan had come to full term. The lender will usually ask for proof that you have the means of paying this before signing off the loan. You can take a repayment loan but the repayments will be significantly higher than those of an interest only loan. However the advantage to this is that you will pay off the total of the loan over the term you take it out for. Each repayment will take a little off the interest and the capital.

These are just some of the reasons why it imperative to get all the help you possibly can when it comes to learning how to finance property development the easy way. Other factors which you have to consider include choosing between a fixed and variable rate of interest and making sure additional costs have not been included in the cost of the borrowing.

Daniel Lock asked:


Is your Property Development project on track? Is it making enough money to fund more projects and grow your equity? Property Development is an extremely rewarding business and if you are to make the most of it you will need to learn as much as you can.

Here are 18 ways you can improve profitability of your project.

1. Negotiate agent commissions.

Everything is negotiable. The only caveat is, if they don’t get enough they may not do a good job. So win-win thinking here is best.

2. Watch and record all expenses like a hawk. Efficiency is the way of future.

3. Negotiate long term contracts with builders.

Or if you are like me and a builder-developer have a panel of contractors.

4.Buy appliances at auctions and store them until required.

Currently I don’t have a space for inventory, so this is on the agenda.

5.Market research.

Know you market and give them what they want. For example a double garage in some suburbs is a must. If you don’t provide it, you will be penalised by the market.



6.Go green.

Research indicate buyers will pay a premium for sustainable houses (this will be the next major wave of innovation in residential building practices).

7.Negotiate Lending rates.

Shop around. Half a percent on a million or two of lending adds up!

8.Rent houses while in planning stages.

Goes without saying, but you would be surprised how things can get out of hand.

9.Maximise sales prices.

Don’t accept the first offer. Push back on the agents to go back and negotiate a better deal.

10.Sell completed.

If cash flow allows. Of course it may be prudent to sell off plan to minimise risk and exposure. However, the public really has a hard time visualising the end product, so selling completed will yield a higher price.

11. Understanding government policies and their implications

A good understanding of the government and council approval regulations and processes. These can be onerous! Understanding of tax legislation and financial markets and an ability to negotiate favourable borrowing facilities.

12. Build Houses currently favoured by the market

Identifying rental properties and/or land located in prime locations. Property investors and land developers should target property hat is attractive to targeted markets. I am planning an article to detail what the current market wants for a given type of dwelling.

13. Good project management skills

This is so important. Project management skills are important for those with negotiating approval processes, with construction activities and/or with building maintenance programs.

14. Effective cost controls

Property investors and land developers should have effective cost controls to maximise profitability. Efficiency is paramount.

15. Output is sold under contract - incorporate long-term sales contracts

Property investors can reduce risks by negotiating long term leases with strong tenants. Land developers can reduce risk by pre-selling lots.

16. Maintenance of excellent customer relations

Property investors should ensure a reasonable relationship between the landlord and tenant. I also focus on superior marketing. In business there are two major focuses. Marketing and Innovation. Think Apple.

17. Carrying out all necessary maintenance to keep facilities in good condition

Property investors should monitor the state of the property and ensure maintenance. If you are managing a property then maintenance programes are very important, it is tempting to do only the essentials, but at some stage the work must be done or the capital values will be affected.

18. Market research and understanding

Skill and knowledge to: understand the property market cycle; localised market conditions; landlord/tenant and/or land & building legislations and processes; tax implications; financial markets; and negotiate borrowing facilities. Be a student of the market and Property Development in general.

Finally think like an entrepreneur. Focus on innovation, doing things better, adapting ideas. They want to be rewarded for their success. You will need to be all of these things. Property Development is a very entrepreneurial activity. You need to visionary and see the end before anything has started. To be able to see the potential.

As a real estate developer you are a “specialist generalist”. There are so many specialists which need to touch your project, so focus on keeping the good ones, building your contacts and relationships. It will pay off in superior quality.

Of course all of this is learn-able and scalable. You can start on small projects and work your way up. The sky is the limit.

I started with small renovation projects that involved repainting and building a picket fence. And worked my way up where I now manage 7 figure projects.

Boldness has genius, power and magic in it. Begin now.

George Gonigal asked:


Indian real estate sector is becoming more organised, thanks to the market crisis. The Indian property segment is witnessing tough times and this is when the private property builders have shown some sort of consolidated efforts to keep market buoyant.

Private property builders in India are raised an alarm about the recent hike in the repo rates by the Reserve Bank of India (RBI). This hike means a direct hike in the lending rates also. Hence most banks like the ICICI and HDFC hiked their rates by 75 basis points. Overall, this is the third consecutive rate hike this year. Home loans have become expensive by 60% in the last two years as compared to the entire decade.

Builders group DLF said that suck hikes will eat into their profits. Another property builder Omaxe Ltd. has proclaimed that such moves will drive away home buyers from the market. The property segment is already witnessing dwindling transactions and such moves by the RBI would mean still lesser property buyers. It is getting difficult to buy property in India. Another big property developer Parsvnath has hinted at hiked prices for all its properties. The Managing Director - Pradeep Jain - has said that consecutive hike in the home loan rates and high constructions rates have forced them to take such steps. He has denied any further brainstorming on this decision.

These sharp reactions should be a pointer to the RBI and the Ministry of Finance to re-think about the relaxations and concessions for the construction industry. The global economy has been ht by the sub-prime crisis. This has cast a dent in the Indian property segment too. Thus, the industry bodies and the Ministry of Finance are being expected for some help.

For more details on Buy Properties in India, log on to magicbricks.com

George Gonigal asked:


Who would have thought that Asia’s largest slum – Dharavi- would become a prized property in Mumbai? Today, every inch of land in Dharavi is sought after. The civic agencies have called in private property and infrastructure developers to revamp the locality.

Real estate developers are striving to get hold of this redevelopment project since Dharavi’s development plan will free 535 acres of urban land in Mumbai. The Maharashtra government has embarked on a Rs 9,260 crore plan to redevelop Dharavi. Big real estate developers like DLF, Emaar MGF and Akruti Nirman have expressed their interest in rebuilding Dharavi. The Maharashtra government claims that many global property builders have also bid for this project but the details have not been disclosed. The government has received expressions of interest from 26 consortia - with three partners each. Of the 78 companies that have shown interest, 25 are international ones; only one consortium is completely Indian.

Meanwhile, the scramble for a piece of Dharavi has begun. The property prices in Dharavi have almost doubled, fetching around Rs 6,000 - 10,000 per sq The slum occupies around 535 acres of land bank in the heart of space-strapped Mumbai, between the city’s swank Bandra Kurla Complex on the one side, and residential neighbourhood Sion on the other.

Inspired by this sudden surge in property values, the real estate developers are now keen to consider the redevelopment of other slums in Mumbai.

Property developers have started looking at the northeastern pockets of the city. These areas have a lot of land available, and are well connected with road network. Moreover in a city where residential property rental values are among the highest in the world, re-development provides an affordable option for property developers and home seekers. Hence, it is a win-win situation for all.

For more details on Mumbai Properties, log on to magicbricks.com

Cherry Bo asked:


The first thing to consider when dealing with development finance UK is the type of funding you need. There is a difference between refurbishment loans and property development finance. Basically residential development finance and commercial development finance is used to build residential and commercial property respectively, or to carry out large scale renovations to existing property. It would be used for a fairly serious property development or some major additions or building works to an existing property. Development finance entails large amounts which are benchmarked at about 150,000 pounds and up. On the other hand, refurbishment loans would be taken out if a property looks worn out and you would need some basic internal works. Renovating property tends to be small scale in nature so the refurbishment loans can suffice.

Refurbishment loans can be obtained with some Buy to Let mortgages and cover basic property renovations. Some lenders for commercial mortgages will allow you to borrow based on the enhanced property value after the end of the renovations, and not on the property price in its current condition. This way, it enables you to borrow further. In essence, you receive two loans: the loan on the current property value and the loan from the completed value. You will need to provide the valuer with a detail of the works you are carrying out. Then they will assess these once they are carried out to confirm the new property value. The Buy to Let mortgage route only applies if you plan to keep the property as a rented investment after works are completed.

A developer can get 100% development finance both for large scale property development and renovations. For 100% development finance in large scale projects, lenders tend to have strict requirement or high interest rates. For 100% development finance through refurbishment loans, which by nature is small scale, an additional security is usually required.

Matt Oakley asked:


Spanish property has always been the most popular choice for Europeans to own a holiday home. The wonderful climate, relatively low costs of living and ease of access has meant that the property market in Spain has seen huge increases in the value of property over the last ten years. The downside of this property boom is that greedy developers and poor planning by local and national government has created an over-supply of property, leading to many properties un-sold and many developers going bust.

The Global Credit Crunch is currently affecting homeowners in most European countries, many of which have traditionally provided buyers for holiday homes in Spain. With property prices in domestic markets tumbling the demand for overseas property has dwindled. So Spain is currently suffering from an over-supply of properties and reduced demand.

Inevitably prices have had to be adjusted to reflect this - many developers are now offering discounts on key-ready properties of up to 35% off the list prices. One of the leading Spanish property developers - Polaris World - are offering 28% discounts on two of their developments in Murcia, Costa Calida. Hacienda Riquelme and El Valle Golf Resorts feature 18 hole ‘Nicklaus’ designed golf courses, 24 hour security and many other facilities, yet prices on these resorts have been slashed as Polaris World try to sell the remaining key-ready properties.

“Polaris World probably didn’t expect to have completed their resorts and still have properties to sell. As with most Spanish developers, the properties are financed and therefore the developer will be paying a mortgage on every unsold property. It is in their interests to sell them off as quickly as possible.” stated Tim Savage, Director of the leading Murcia golf property agency - Murcia Golf Properties Ltd (http://www.murciagolfproperties.com).

The golf resorts of Murcia are still very attractive to overseas and domestic buyers. They have superb facilities, good rental potential and excellent security. Prices have always been much more reasonable in Murcia than other areas of Spain such as the Costa del Sol, however agencies such as Murcia Golf Properties Ltd are currently offering properties in prime positions at less than original release prices of five or six years ago as re-sales flood the market.

During recent years property buyers in Spain focused mainly on off-plan property, but now buyers have a much wider choice. Many property owners are struggling to finance their investments since mortgage rates increased and exchange rates plummeted. This is leading to an influx of completed property at bargain prices. These re-sales are often cheaper than off-plan equivalents and are being sold with extras such as swimming pools, air-conditioning and furniture. This is putting further pressure on the developers.

“There’s no doubt that the market is very tough, however Spain is not alone in that. What it does mean is that anybody looking to buy in Murcia now has some superb properties to choose from at bargain prices. We have apartments on La Torre Golf Resort from €115,000 and villas from €159,000. These properties would have sold for at least 40% more than that a year ago. Now really is a good time to snap up a bargain.” added Mr Savage of Murcia Golf Properties Ltd

Property in Spain can now be bought for prices similar to that of less attractive countries such as Bulgaria and many experts believe that Spanish property will bounce back quicker than other markets when the credit crunch loosens. Perhaps one of the few benefits of the credit crunch is that very good quality Spanish holiday homes have now become available at very attractive prices. It is clearly a buyer’s market and could be a good time to buy your dream holiday home at a knock-down price.

Murcia Golf Properties Ltd have two offices in Murcia and can be contacted at http://www.murciagolfproperties.com or http://resalepolaris.com

John Hill asked:


In a rapidly expanding, highly competitive property market, the Dubai Investment Park property development has carved an extraordinary niche for itself by superbly managing to remain environmentally friendly and yet be technologically advanced at the same time.

Stretching 10kms in length and sprawled over 32 million square meters at the southern area of Dubai; Dubai Investment Park is a mixed-use residential, commercial, industrial and recreational property development. Designed to be independent and self-contained, Dubai Investment Park offers investors an array of high quality, ultra-modern amenities and services for a wide range of purposes including office; housing; manufacturing; academics; commercial, research and development activities; logistics and distribution.

Office Space at Dubai Investment Park

Strategic location combined with excellent planning make the office space zone at Dubai Investment Park hot property. Unlike other high-rise offices, the boutique-styled DIP office space zone is low-raise and heavily landscaped. Parking hassles normally associated with low-rise developments are taken care of by incorporating large and discreet parking areas that not only facilitate business performance but also contribute to enhance facilities for residents as well as visitors.

In close proximity to Jebel Ali Port and only half an hour away from downtown Dubai; Dubai Investment Park is in a prime location. Moreover, it is surrounded by a 20 km radius of premium entertainment, recreational, hospitality and residential developments including Dubai Marina, Palm Jumeirah and Dubailand.

Blending Industry & Community

Aiming to create a township where people can work, live and play; great care has been taken to ensure that the solid infrastructure for industrial growth is accompanied by state-of-the-art community amenities.

Some of the community amenities at Dubai Investment Park include:

- Golf Course

- Football ground

- Healthcare center

- Major Shopping Centers

- Schools & Higher Education Institutes

- Sports Club & other Recreational facilities

- Insurance as well as postal and banking facilities

- Residences that are designed to cater to a wide range of demographic segments

Infrastructure

Supporting all these facilities and amenities is the sizeable infrastructure:

- 600mVA electricity supplied by a private power plant

- 50,000 telephone lines

- Daily gas provision of approximately 2.5 million m3

- Domestic water system capable of supplying a daily volume of 19 million gallons

- Irrigation water system capable of supplying a daily volume of 6 million gallons

- Industrial process water systems capable of providing 2 million gallons a day

Safety Features

The advanced, ultra-modern public safety features at the Dubai Investment Park include a permanently based fire engine and ambulance in addition to 45 CCTV cameras, mounted around the development, and state-of-the-art wireless communication systems which will facilitate smoother coordination and faster response times by DIP authorities to any emergency. Clinching the security measures is the 24-hour hotline exclusively for DIP that can be accessed at any time in order to address all security-related concerns.

Given the array of impressive features and amenities incorporated in the Dubai Investment Park property development, it comes as no surprise that it was declared the winner of the Best Mixed-Use Property Development of 2008.

addy bworn asked:


Property Development Loan

A property development loan is a loan which is specifically designed to develop a property. Typically a property development loan is enough to cover the entire process of developing a property. This includes zoning, preparing the land, installing water, sewer and electricity, and building whatever structure will be built on the land. In most situations commercial lenders will split up the entire loan and doll it out to the business as it progresses through each stage of the development plan. The main reason lenders do this with a property development loan is to reduce the risk. By splitting the loan up they stand to lose less if things fall through.

Like most commercial loans a property development loan will be given with a higher than normal interest rate. This is to alleviate the higher level of risk associated with a property development loan. In some cases a business seeking such a loan may be able to get a better interest rate by working with a commercial loan broker. While using a commercial loan broker cannot guarantee a better interest rate it often helps because the loan request is presented to several lenders. The credit history and revenue history of the business will often affect the interest rate and other loan terms.

Like most commercial loans a property development loan will be given with a higher than normal interest rate. This is to alleviate the higher level of risk associated with a property development loan. In some cases a business seeking such a loan may be able to get a better interest rate by working with a commercial loan broker. While using a commercial loan broker cannot guarantee a better interest rate it often helps because the loan request is presented to several lenders. The credit history and revenue history of the business will often affect the interest rate and other loan terms.

Like most commercial loans a property development loan will be given with a higher than normal interest rate. This is to alleviate the higher level of risk associated with a property development loan. In some cases a business seeking such a loan may be able to get a better interest rate by working with a commercial loan broker. While using a commercial loan broker cannot guarantee a better interest rate it often helps because the loan request is presented to several lenders. The credit history and revenue history of the business will often affect the interest rate and other loan terms.

http://www.businessfinancebroker.com/Business-Loans.html