Overview of the New Build Strategy.

Overview of the New Build Strategy.

The new build strategy could be thought about as something that sits alongside the commercial to residential strategy because it has the same size of scalability and thought process. However, the newbuild strategy does have some more hurdles and its own unique benefits.

What is the new build strategy?

This strategy involves acquiring land and building properties. It is a very straight forward and simple idea, and it is becoming more and more popular. In fact, this strategy has increase in popularity and has continued to for years and years. This is a strategy that even gets implemented by first time developers.

Now, it really depends on what you are building, to how you implement this as a strategy. If you are looking to build one house, then this will most likely be a completely different type of new build strategy to if you were looking to build a skyscraper. So when it comes to this new build strategy, you need to understand what you want to be building and more importantly you need to look into what the area your looking at is telling you, you need to be building.

The idea behind this strategy is relatively simple. you buy some land, maybe put some planning permission on it if you don’t already have planning permission on it and then you complete the build of whatever the property is that you have decided on.

However, there are also some other caveats around this. It might be that you have bought a property that is already standing and it has some additional land available with it, therefore you may be looking to title split the land of and put a second development on it. so although it is a straight forward simple strategy, its gets a little more complicated as you need to really think about when and where this strategy can be implemented, because it could be a strategy in its own right or it might be a bolt onto another strategy to ultimately really add value onto what it is that you are doing.


Why you might want to get involved with the new build strategy?

The key reason as to why this strategy is needed and why you might do it ultimately comes down for this need for housing. We know that we have an ever-expanding society with more and more people and we currently can’t keep up with the demand which is why there should always be a need for this new build strategy. On this note its important to understand what your area needs.

With the commercial to residential strategy you are more confined with the current building that you have, however with this new build strategy you can build specifically for the need of the area. Therefore, it comes down to you doing your due diligence to find out what the area has and what the area needs. So, this strategy has a bit more flexibility than the commercial to residential strategy.

Another reason why you might want to get involved with this strategy is because it can be life changing. It could provide you with the kind of profits than commercial to residential can, but on the other hand it could also be a smaller tick over model where you build one or two houses at a time on smaller plots depending on how you approach it.

Something else to consider is that this is a great strategy to employ if you are thinking about working with others because it is a very leverage strategy.

My last point about why you might consider this strategy is that it offers more flexibility around design. So, if you are a creative person who wants to get the most out of the design, when you are working with new builds you can really design some amazing things without limitations caused by other strategies.

Who is this strategy for?

There are so many different property strategies and its important to determine if this strategy is going to be right for you.

Firstly, this is a great strategy for those of you who have already got some building experience. So, if you happen to be a builder working for somebody else or work within the construction industry, then this might be an amazing strategy for you to employ. If you are a tradesperson who has been involved in building sites, then again this could be a great strategy for you.

If you don’t have building or trades experience, then not to worry. This is also a great strategy for those of you who truly want to add value back into communities and grow your network it can be equally as good.

Something to consider is, where you enter the market will impact the level of experience that you have got. For example, if you are looking at your first new build, you wouldn’t be looking to create a large block of flats for student accommodation, you might look into building a couple of houses, which will allow you to work with a team and get confident using this model.

Money is not a deciding factor within the new build space, because again this is not a strategy about the depths of your pockets, it is very easily financeable subject to having the right margins and the right people onboard with you. So ultimately what I am trying to say here is don’t let money be a deciding factor for you if you are thinking about doing this strategy.

This is a great model when it comes to thinking about volume. You can create smaller homes or larger homes and you have the flexibility to decide where you feel comfortable within this space.

Something important to mention is that I would class this as a time rich strategy because it takes more due diligence and you need to be able to oversee the project, really pull your team together and invest yourself into the energy of the deal because you will get better outcomes if you do this.


Where would you implement this strategy?

When it comes to where you implement this strategy it is pretty simple. you can do this strategy anywhere that can house it. This strategy works well across the whole of the UK. It’s important to remember that what you are doing needs to be financially viable within the area and as long as there is a need for housing then it really can be anywhere.

When it comes more down to the sites and the specifics that you need to look at, I would certainly say that it’s a lot easier to secure planning permission to build in an area where you know there are brown belt developments as opposed to green belt developments.

Brown belt land –previously developed land that has the potential for being redeveloped.

Green belt land -undeveloped, wild, or agricultural land surrounding or neighbouring urban areas.

Before you build a new build especially if it is in the garden of an existing property, you need to check with your local council plan and with your local planners to make sure that what you are wanting to do is viable because you cannot always put a secondary dwelling into an existing property. Something else to consider is that you need to be able to get vehicular access to the particular site that you are wanting to develop. This is not so much about parking for the building, its more about the logistics of physically building it.

So, when it comes to where it can be almost anywhere but be mindful of those few caveats.

When should you employ this strategy?

The first thing to mention here is that this strategy requires a lot of engagement and investment of your time to really understand the different mechanics of new builds, therefore if you want to do this strategy you need to be thinking about a long term strategy. So, if you are looking to establish a property business then this may the strategy for you.

Another time that you may look to do this is if you are thinking about the buy to let strategy. instead of buying a property, why not build your own? This way, you can specify it to exactly your needs and exactly the needs of the area, plus it gives you the opportunity to add value before you get to the letting stage, meaning that your returns will be higher.

You might also consider this strategy if the area that you are looking to work in has a large demand for new build properties. People love to buy new build properties because they come with a guarantee and you could say if there is a strong need for them then could be a strong exit too.

You would only employ this strategy when you know that you have a competent team around you because you will be relying on their skills for certain aspects.

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