Vena Solutions’ Post

Real estate developments are multi-year investments—meaning it will be years before you realize a profit. ⏳ And a lot can happen during that time—from market changes and unexpected costs to interest rate adjustments and shifts in demand. 📈 That’s why it’s essential for #realestate developers to stay on top of their ongoing costs and proactively manage their #construction budget to protect profit margins. 👷♂️🏙 On the Vena blog, we delved into the factors that impact construction project profitability and how real estate finance teams can maximize the business’s ROI. ⬇️ https://lnkd.in/gSH68MNK

Real estate developments are multi-year investments—meaning it will be years before you realize a profit. ⏳ And a lot can happen during that time—from market changes and unexpected costs to interest rate adjustments and shifts in demand. 📈 That’s why it’s essential for #realestate developers to stay on top of their ongoing costs and proactively manage their #construction budget to protect profit margins. 👷♂️🏙 On the Vena blog, we delved into the factors that impact construction project profitability and how real estate finance teams can maximize the business’s ROI. ⬇️ https://lnkd.in/gSH68MNK

A typical payment plan on booking an Under Construction/ Off plan property looks like below: 10%- Paid on Booking 20%- Paid in 3-4 months 40%- Paid across 1.5- 3 years 30%- Paid on possession (around 4-6 years) When you book a property today, you lock in today's price, while the major part of the payment goes during 1.5 - 5 years of the booking. This means that as market prices rise, you're essentially paying yesterday’s rates, letting the property’s value appreciate significantly by the time construction is complete. In strong real estate markets, this often yields substantial returns by the end of the project, as you're holding onto an asset that grows steadily. If we look at the other popular investment choice- Mutual Funds, you purchase units based on the Net Asset Value (NAV) of that day. So, your investment today or after 5 years would be based on the NAV of that particular day, which would keep rising with inflation and market currents. Whether you're a seasoned investor or new to the real estate market, consider the strategic advantage of securing future value at current prices.

A Silver Lining of a Slowing Real Estate Market: Reduced Build Costs In a recent conversation with a U.S. developer, I learned that for every $1 drop in property prices, they’re seeing about 50 cents in cost savings on their projects. Interesting, right? While Canadian markets haven’t seen quite the same effects, we're beginning to notice a shift—particularly for professionals at the early development stages. Architects, engineers, and consultants involved at the early stages of development are feeling the pinch, with fewer calls and more competitive fees than before. It's a clear indicator that costs are starting to adjust, with hard construction costs the last domino to fall. Will municipalities take notice? As proposal submissions slow down, maybe it’s time they rethink their fees and taxes. Dare to dream!

📑 Investment Market Insider | Builders Adapting to Higher Construction Costs 🏢 The challenge of escalating construction costs in NYC has had direct implications for property investments in CRE. As new building expenses remain high, developers, owners and construction companies are compelled to reassess their strategies to ensure the financial viability of CRE projects. ✅ This article by Bisnow explores how industry players are addressing the financial challenges associated with construction: https://lnkd.in/gsiyw_T4 #IntegrisVentures #RealEstateOperator #ConstructionCosts #CRE #CommercialRealEstate

Construction cost increases hit 7-year low as residential building sector continues to cool: https://buff.ly/3SiiTyd Construction costs are rising at the slowest rate in seven years as the residential building sector continues to cool, CoreLogic says. Talk* to us about your first / current / next investment property today; we’ll help you evaluate your situation and connect you with the right people; call 0800890132 or visit EpsomTax.com for tax advice, strategy&structures and #investments, including #propertyinvestment cryptoinvestment nfts managed funds shares #investmentproperty #property #propertymarket #construction #rentalproperty #newbuild #realproperty #investments #propertytax #investment #investmentstrategies #investmentstrategy *我的中文说蹩脚，hablamos español, falamos português.

Construction and developer insights 🏗️🔍 COMMO shares the latest trends on how construction and labour costs have impacted the commercial property market and the flow-on effects to both investors and tenants. #CommercialProperty #PropertyTrends

Cost consultants have never been more important. Alison Castellano and her team provide businesses with essential real estate construction data and guidance as prices rise and complexity increases. Find out how she can help you mitigate risks and ensure the success of your project: https://lnkd.in/dButVbmy #CostConsulting #Pricing #Data

In order to confront the rising costs of doing business in 2024, NYC owners and developers are looking for new ways to cut back on their expenses. Some of the cost-cutting methods under consideration include: 🔘 Incorporating more sustainably-focused materials into the process 🔘 Greater reliance on prefabricated design 🔘 Pushing costs back onto eventual tenants 🔘 Holding out for future tax breaks How is your company planning on dealing with the rising costs of doing business in 2024? Let us know in the comments below. For more on this topic, visit: https://lnkd.in/gsiyw_T4 #NYC #Construction #Trends #Finance

Ready To Move Vs Under Construction Property The choice between investing in a ready-to-move property versus an under-construction one depends on individual preferences and financial considerations. 👇 For more info click below 👇 https://lnkd.in/gRX_duvB #readytomove #underconstructionproperty #realtydart