Diary of a land finder virgin

Mar 10, 2010  |  under Property, Residential site finding  |  by Lyndon Forshaw

It’s always great to get some independent feedback on my land finding techniques. So I was absolutely thrilled to see that Julie Hanson from property portal www.justdoproperty.co.uk has just started a series of blog articles about my Land Finder Masterclass called: “Diary of a land finder virgin”.

Julie has recently signed up to my Land Finder Masterclass, and in her weekly blog posts, she will be sharing her thoughts and progress as she works her way through the comprehensive 8-week course.

You can see how she’s getting on and read all about her progress here.

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(Garden) Grabbing The Headlines

Did you catch the recent news reports about the Government’s so-called “clampdown on garden grabbing”?

According to the press, garden grabbing – whereby developers build inappropriate developments within the back yards of existing houses – has become “a serious problem”. The Telegraph’s coverage is fairly typical of the way the mainstream press covered the story.

Someone reading the article could be forgiven for assuming that garden developments have effectively been banned. However, if you compare the news article with the official Government statement you’ll realise that nothing could be further from the truth.

But it’s worth looking at the facts of the story because behind the spin some interesting points have come to light…

“Not a problem in the majority of areas…”

It seems the Government commissioned independent research to investigate the issue of inappropriate developments within back gardens. The review’s findings are really interesting…

“Of the 127 [councils] who responded, less than half (50 councils) considered it an issue in their areas. Of those who reported a problem, only 5 per cent (7 councils) had specific, local policies in place.” It’s worth noting that none of the councils who responded asked for a blanket ban on back garden developments.

The Housing and Planning Minister John Healey admits: “it is good news that councils have told our independent experts that it is not a problem in the large majority of areas.”

So, despite what the press would have us believe, the Government isn’t advocating a ban on all garden developments. They’re merely reminding a minority of councils who have been a little lax, that they have the power to prevent inappropriate developments to be built in back gardens.

So what does this mean for land finders, self-builders and developers?

Successful property development relies on appropriate, carefully considered schemes that enhance a neighbourhood. I’ve never been in favour of inappropriate, oversized developments shoe-horned into tight back garden areas and welcome the Government’s efforts to tackle the issue in those few “hot spots” where it’s been allowed to become a problem.

To be honest, these sorts of development are often fraught with problems. I prefer to concentrate on “infill” developments – slotting new housing in between existing properties. It’s usually much easier to get infills through planning and they don’t tend to suffer from the same access issues.

Huge demand for UK developments

The fact is, there’s huge demand for additional housing (and therefore suitable development land) in the UK. The Government has set a target to build 3 million new homes by 2020 and, in the main, it’s down to the local authorities to allocate enough land to meet this ambitious goal.  Most local authorities see garden plots as a suitable and sustainable way of helping them achieve their targets. After all, most of the infrastructure required for a new development – such as roads, utilities and local amenities – are already in place.

It’s hardly surprising therefore that in some areas as much as 94 per cent of residential development is on gardens or other “occupied” land. The Government relies on the redevelopment of this land – known as “brownfield” land – to house the country’s growing population. To suggest that the practice of building on spare garden land could be banned is, frankly, ridiculous!

Due diligence…

So, if you’ve found a back garden with great development potential, none of this need put you off exploring its potential further. The new guidance doesn’t mean that all back garden developments are out of the question. It just means that the planners are less likely to let you get away with a really bad proposal.

As with all development schemes, it’s simply a case of performing your due diligence and checking with your local planners to gauge their reaction to your proposals.

But remember, there are lots of opportunities out there that don’t involve gardens at all! My most profitable deals have involved other types of brownfield sites… pubs, petrol stations, garages, farms. There are opportunities all around us, it just takes a keen eye to spot them!

Unless the Government is willing to release huge swathes of Greenfield or Greenbelt land – which is extremely unlikely – they must rely on industrious land finders and developers to identify alternative uses for existing brownfield sites. It’s the only way they’re going to meet their own targets and house the growing population.

So, as long as there’s a demand for houses there will be opportunities for those people “in-the-know” to make substantial profits from land. And if the press insist on labelling us “garden grabbers” then I guess it’s something we’ll just have to live with!

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“Life is like a box of chocolates”

Jan 6, 2010  |  under Below Market Value (BMV), Property  |  by Lyndon Forshaw

Well, life certainly has a strange way of dealing out the cards sometimes. As Forrest Gump famously said: “Life is like a box of chocolates… you never know what you’re gonna get!”

Before Christmas I was busy helping to broker one of the strangest deals of my career. As regular readers will know, before I was made bankrupt, I had built a considerable property portfolio worth over £10m at the time.

Unfortunately, due to my involvement with a failed music distribution company, I eventually watched the entire portfolio slip through my hands.

Well guess what?

I recently helped to broker a deal to buy back the majority of properties within the portfolio… the very same properties I bought several years ago! It was touch-and-go… but after a lot of negotiation we eventually managed to strike a deal to secure the houses from the administrator on behalf of a contact of mine. Who’d have thought it!?!

Not only that, I am now helping my colleague to split up the portfolio and sell on these fantastic buy-to-let houses at an amazing discount.

It’s a fantastic way to launch my new BMV property brokering service. Most of my former properties are available now at a fantastic and genuine 30% DISCOUNT and many of the houses are already tenanted!

Of course, I know each of these properties extremely well and can confirm that every one represents a fantastic deal for those on the look out for good BMV opportunities.

Inevitably, quite a few have been snapped up already and there’s been a huge amount of interest in the rest.

So if BMV properties are something you’re interested in, you’ll need to act quickly if you want to bag yourself an excellent bargain – deals like this won’t stay on the market for long!

To find out more, join my BMV Properties mailing list today.

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Just launched… BMV Properties mailing list

Dec 29, 2009  |  under Below Market Value (BMV), Property  |  by admin

I’m really excited to announce the launch of a new service which aims to bring you exclusive access to the most exciting BMV deals around… properties with a GENUINE 20% – 30% DISCOUNT off market value.

Join my brand new Below Market Value mailing list and be the first to find out about amazing property deals across the UK. Subscribe now!

We launch with a portfolio of 65 North West residential properties available at a fantastic and genuine 30% DISCOUNT.

The portfolio includes…

4 Bedroom, 3 storey, end terrace
Currently let at: £575 pcm
Estimated value: £134,950
Discount: 30%
Price: £94,465

2 Bedroom mid-terrace
Currently let at: £325 pcm
Estimated value: £69,950
Discount: 30%
Price: £48,965

2 Bedroom semi-detached
Currently let at: £500 pcm
Estimated value: £135,000
Discount: 30%
Price: £94,500

2 Bedroom mid-terrace
Currently let at: £275 pcm
Estimated value: £55,000
Discount: 30%
Price: £38,500

…plus many, many more amazing deals.

To find out more, join my BMV Properties mailing list today.

Hurry… these properties will be sold on a first-come-first-served basis. Deals this good won’t be around for long!!

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Developing confidence in the UK property market

Nov 18, 2009  |  under New build, Property  |  by Lyndon Forshaw

As the year begins to draw to a close, some very positive signs are emerging that would suggest confidence among the major housing developers is starting to return. For the first time in the last couple of years, there’s talk of major new land acquisitions.

During the latter half of 2009 there seems to have been a slow, yet steady, month-by-month recovery in house prices. This has lead to a wider sense of confidence that is spreading to the major developers…

For example, I read today that Barratt Developments announced a 30% increase in reservations per site. In fact, they’ve indicated that they’re once again in the market for new land acquisitions, proving they believe the worst is now behind us. Meanwhile, house builder Persimmon has just announced they’ve got a very healthy order book of £500 million in sales already confirmed for 2010.

This sense of confidence is certainly supported by activity at our land agency website, www.landlounge.com. We’ve noticed a significant surge in the demand for good quality development land over the last few months from developers large and small.

The fact that the larger house builders are now looking to source new sites should act as a really positive sign for us smaller developers, refurbishers and land finders. I’ve certainly taken the hint and have already committed to develop 18 new houses during 2010. I’ll let you know how I get on.

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