zlb
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Post by zlb on Jan 23, 2022 9:38:37 GMT
generic question, if an overseas company has bought a built-on site from a UK Council for £35m what might they need to develop to make enough of a profit. At the moment, the proposed resale of flats, once developed would be £270m
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zuluwarrior
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Post by zuluwarrior on May 8, 2022 22:20:37 GMT
Depends on the value of the area as to what would need to be built. Costs don't differ hugely on location but some areas you could lose money by developing in a cheap area
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Greenwood2
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Post by Greenwood2 on May 9, 2022 9:46:46 GMT
It will/should have all have been costed before they bought the land, unless they meet unexpected problems or someone has made a big mistake in the calculations they will be expecting to make a good profit.
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zuluwarrior
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Post by zuluwarrior on May 12, 2022 17:24:25 GMT
It will/should have all have been costed before they bought the land, unless they meet unexpected problems or someone has made a big mistake in the calculations they will be expecting to make a good profit. We hope but some P2P failures have clearly shown some people haven't done the numbers right!
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Greenwood2
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Post by Greenwood2 on May 14, 2022 20:00:46 GMT
It will/should have all have been costed before they bought the land, unless they meet unexpected problems or someone has made a big mistake in the calculations they will be expecting to make a good profit. We hope but some P2P failures have clearly shown some people haven't done the numbers right! If the development runs out of funds for some reason then all bets are off. P2P platforms not being able to provide future tranches of funds has been a problem. High valuations for loans have also been a big problem in P2P funded developments, possibly due to some P2P platforms being a bit inexperienced in some cases, or worse in others.
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Post by df on May 15, 2022 18:39:37 GMT
We hope but some P2P failures have clearly shown some people haven't done the numbers right! If the development runs out of funds for some reason then all bets are off. P2P platforms not being able to provide future tranches of funds has been a problem. High valuations for loans have also been a big problem in P2P funded developments, possibly due to some P2P platforms being a bit inexperienced in some cases, or worse in others. I think it's the valuers who were either inexperienced or gave the values that platforms requested.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 15, 2022 20:15:22 GMT
If the development runs out of funds for some reason then all bets are off. P2P platforms not being able to provide future tranches of funds has been a problem. High valuations for loans have also been a big problem in P2P funded developments, possibly due to some P2P platforms being a bit inexperienced in some cases, or worse in others. I think it's the valuers who were either inexperienced or gave the values that platforms requested. I fear one of the biggest issues is lenders were inexperienced & didn't understand the context of many of the valuations eg MV with restrictions is still largely meaningless in a distressed sale scenario, particularly when it relates to a development. Certainly consider myself in that category. That's not to deny the more collusion & conspiracy theories are also valid
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ozboy
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Post by ozboy on May 16, 2022 21:33:23 GMT
If the development runs out of funds for some reason then all bets are off. P2P platforms not being able to provide future tranches of funds has been a problem. High valuations for loans have also been a big problem in P2P funded developments, possibly due to some P2P platforms being a bit inexperienced in some cases, or worse in others. I think it's the valuers who were either inexperienced or gave the values that platforms requested. Valuers knew EXACTLY what they were doing, it was all very cosy and deliberate. I have zero experience in "Valuing" and time & again (when I had sufficient asset information), with five or so minutes work and a calculator, I came up with FAR more accurate valuations. Which, strangely enough, ALWAYS came well under what the "Professional Valuer" stated. (Development Loans of course are a special & more difficult case.) Prosecutions and jailings are required IMHO.
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Post by harryvederci on May 17, 2022 9:42:05 GMT
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ozboy
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Post by ozboy on May 17, 2022 13:13:57 GMT
As far as I can see, he was "Expelled from RICS", and had to "pay Costs."
And that's IT.
Says all you need to know about RICS, their integrity, and their "professionalism."
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 17, 2022 14:13:43 GMT
As far as I can see, he was "Expelled from RICS", and had to "pay Costs." And that's IT. Says all you need to know about RICS, their integrity, and their "professionalism." What else would you expect them to do? They dont have any statutory, regulatory or legal powers. They received a compliant, they investigated, they held a process, they imposed the maximum sanction.
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tallsuk
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Post by tallsuk on May 17, 2022 16:19:41 GMT
As far as I can see, he was "Expelled from RICS", and had to "pay Costs." And that's IT. Says all you need to know about RICS, their integrity, and their "professionalism." Are RICS not a professional body? If they are, that means he has been struck off and will be breaking the law and commiting fraud if he practices.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 17, 2022 17:44:12 GMT
As far as I can see, he was "Expelled from RICS", and had to "pay Costs." And that's IT. Says all you need to know about RICS, their integrity, and their "professionalism." Are RICS not a professional body? If they are, that means he has been struck off and will be breaking the law and commiting fraud if he practices. I don't believe you are required to be a RICS member to practice but I doubt you will get much work without the accreditation.
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zlb
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Post by zlb on May 18, 2022 11:57:04 GMT
People have mentioned about this site that it was purchased by overseas company who didn't foresee pandemic and change in cost of building material and other costs going up. This leaves an awkward situation where they are still trying to make a profit by over-development.
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zuluwarrior
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chap from Newcastle, dabbling here and there. Long-time lurker of the forums
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Post by zuluwarrior on May 18, 2022 15:03:15 GMT
The pandemic has been fairly good for residential property prices though, so far we haven't seen it effect the property market considerably.
Build costs have gone up but they should be able to absorb that on the profit margin.
Where is it roughly, if I know the rough end value per sqft, I can work out what they need to build
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