I hope you've had a great summer? I know mine has been very memorable with a truly great family holiday.
I thought the kids would never go back to school though!
Anyway, the equinox is almost upon us now and you've no doubt seen at least one of my face book posts over the past few months. www.facebook.com/landfusion
I think I’ve painted a pretty good picture about what’s really happening in the development world.
Certainly the country is still flat-lining and the bastard banks are still being allowed to call the tune for their masters, but just this very morning David Cameron was on the news again about building more homes, but made an astonishing announcement:
This is not a quote, but in a nutshell he said:
‘No more reliance on the developers to provide affordable housing as part of a scheme.
Any sites waiting to be developed with affordable homes already factored in don't now have to be built as part of the scheme! (That means many section 106’s can also be challenged too.)’
I have to say this took me completely by surprise and I almost crashed the car!
I expected them to bolster the industry further but the years of whacking developers over the head with a big planning stick seem to be over.
No more requirements for affordable homes within existing schemes means most sites which have already been bought and awaiting development are far more profitable, up to 30% in some cases! How’s that for a windfall?
It’s absolute proof the Government are determined to grab the development world by its lapels and haul it up to start driving the economy again.
They’re throwing everything at it they can; ‘new buy scheme’ for first time buyers, ‘funding for lending’ or ‘lending for funding’ program (cant remember what its called) where the banks are guaranteed a low rate of interest about 0.75% on Government loans instead of 3%, but on the basis they lend it to small businesses. If they fail then they’re penalised by paying the original interest rate.
Basically, every Government news conference is banging on about building new homes.
I hope you realise what this means for us?
It means projects which looked to be unprofitable may now be very desirable to our developer contacts. We’ll be trawling through all your projects to see whether we can resurrect some who may now qualify!
This cant come at a better time and we’re getting the best responses ever from our letters now too.
Best of all, our clients, who as you know are credit checked by me personally all have cash to spend, and lots of it, that’s a system requirement.
I've just spoken to my planning consultant this morning and he’s still taking the news in, I don't think he can believe it either!
This also means we have three projects which will automatically be given the green light on this news.
This is now the perfect time to launch a new business within landfusion, because our partners are planning to fund our own development arm.
We’re also going to be providing developer funding where you’ll profit too.
I’ll be sending you a private email in due course on how this will affect you and new and exciting income streams you’ll be able to profit from within your existing subscription.
I can see this being an excellent few years for us together and with our new company and partners we can all look forward to some fantastic projects and opportunities.
Look out for an email from me early next week.
I’ll look forward to speaking with you in due course.