Building to sell: how to maximise the investment in a house?
All you need to know as a developer to build and sell
If we focus on the real estate market, building houses and then selling them is an excellent business opportunity for developers. However, the key to success lies in efficiency, precision in the design and planning of the project, and knowledge of the market, both in terms of tastes and essential requirements. Here are some tips and points to take into account in order to optimise the profitability and return on investment of the construction and sale of houses.
Choosing a good building site
The land to build on is one of the elements that most condition the sale of built houses. The success of a construction project begins with the right choice of land. To this end, it is essential to look for locations that are not only attractive today, but also have potential for appreciation. Considering factors such as proximity to urban growth areas, the quality of the natural and urban environment, access and transport, and the overall potential as a building site. The latter is important since, as the area develops in the future and more housing is built, maximum provision will need to be made for the preservation of privacy through factors such as orientation and the choice of land itself.
A good strategic choice of the plot where the house will be located not only affects its design and aesthetics, but also its energy efficiency, privacy and even the layout of the interior and exterior spaces of the house. Furthermore, at this point it is important to highlight the importance of a geotechnical and topographical study of the land prior to construction, in order to avoid future problems and to know the land where the house will be built.
How does delivery and construction time affect the profitability of a house?
Another factor to be taken into account by developers is the timing of construction and delivery of the house. During the process of building the house, unforeseen events and inconveniences can arise that affect the profitability of the investment that is being made to obtain the house. There may be delays in the deadlines, problems with the land, with the weather, among many others when the house is built by traditional construction. All these problems result in a delay in the construction and sale of the house, which in terms of investment means an increase in costs and consequently lower profits for the developer.
In addition, time does not play in favour when we talk in terms of materials (as everything becomes more expensive with time), clients and suppliers. Good communication and time management between suppliers, construction company, architects, etc. is crucial for the construction to be as efficient and fast as possible, without unforeseen events.
As for the clients, the speed of sale of the house increases when a deadline and a fixed price are assured, so meeting these deadlines and budgets is crucial if we want to obtain greater profitability.
This is where it is important to highlight the rise and importance of industrialised construction, presenting itself as a more efficient and faster way of building. With guaranteed delivery times up to 50% faster than traditional construction. At inHAUS we develop modular projects that allow developers to start selling properties in record time and with closed prices from the beginning. This not only improves cash flow, but also reduces financing and operating costs.
Building insurance: Decennial Insurance
To guarantee a good investment it is necessary to take into account all the insurance, requirements and legalities that are demanded. On this occasion we highlight the Decennial Insurance, vital for any developer building new homes in countries where it is required, such as Spain or France. This insurance protects the sold house against structural defects for ten years after construction, which is not only an additional guarantee for buyers but also a legal protection for the developer.
In addition to reinforcing the buyer’s confidence, the timing of implementing this insurance is key. If the construction of the house is started with the intention of selling it, then this is the ideal moment to implement this insurance, as the procedure will be simpler and less costly than for a house that has already been built and is subsequently sold.
For developers looking for a reliable partner to build and sell turnkey homes, with a fixed price and deadline, with the highest quality and profitability, inHAUS is the ideal partner. Our experience in the sector positions us as leaders in the construction of modular homes, which allows us to have under the same company the entire chain of design and manufacture of the houses, offering a safe and controlled construction experience at all times. If you are a developer interested in investing through construction for sale, this is your opportunity.
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Whether you are an individual or a professional, do not hesitate to contact us for further information to request a personalised quote or to make any enquiry.
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