What are your goals for 2022? Are you looking to get started in property for the first time? Or are you just looking to bring your property business to the next level? If you’re already thinking “new year, new me” and are seriously ready to change your life, then I have an opportunity for you. This opportunity is commercial to residential conversions.
The market hasn’t been kind to conversions over the past few years. Tight planning regulations and a lack of demand have resulted in their popularity decreasing. Thankfully, all of this is about to change. Keep reading our article to discover how transforming commercial units can also transform your life in 2022.
Commercial to Residential Conversions – Why Now?
The trick to any successful business is supply and demand. It’s no secret that the UK has a huge demand for housing, with very little supply. England needs 345,000 homes a year to sustain its population. Can you guess how many houses we are short of each year against this target? A staggering 101,230. Demand has never been higher. The only two ways that we can meet it is by redeveloping commercial units or building new homes from the ground up.
So, that’s the demand covered. What about the supply?
Unfortunately, we’re going to have to use the dreaded C word. One of the main reasons that commercial to residential conversions are going to be huge in 2022 is because of COVID. The crippling effects that it has had on the high street has resulted in a lot of businesses closing. This leaves their units vacant and ready for purchase. This is the supply that is going to help UK property developers hit that demand. We’re going to have a supply of commercial units in numbers that we have never had before.
High demand with very little supply means very attractive GDV’s on your developments. If you know how to find the right deal and convert it at the right price, then you could be in for some good money.
The difference between making a fortune and losing it lays in being educated. If you have the right knowledge and team then you’ll be ready for the commercial wave in 2022 and race ahead of the competition. Starting now means that you can take advantage of an opportunity that most people wait their whole lives for. Thankfully, I’ve made some costly mistakes so that you don’t have to! I give away all of my top tips on saving and making money in property on my Commercial Conversion Discovery Day. If you want to know more about it then call Progressive Property’s friendly team on 01733 898 557.
So, we have supply and demand down. What about funding?
Why Commercial to Residential Conversions is All About the Money
More specifically, it’s all about development finance. Funding is widely available at the moment. A lot of projects were delayed in 2020 and 2021. This has resulted in a wave of delayed finance and some eager lenders. There are so many new lenders and products which are taking advantage of the newly booming market. Lending is now easier to get if you know how to make a deal stack.
Commercial units are also easier to finance than new-Commercial units are also easier to finance than new-builds because there is less risk involved. Because a commercial unit is already an existing property, you don’t have to worry about getting it out of the ground. If you’re a new starter or someone with less upfront capital, then this is great news for you. The key to securing lending is to have a solid deal and a team that can deliver it.
Planning For the Future
If you haven’t done property development before then what’s stopping you? The biggest three reasons tend to be:
- Lack of capital-/ issues with funding
- Lack of experience
- Planning permission
If there are any words that we hate more than the C-word, then it’s the dreaded double P. Planning Permission. If you don’t know about planning, it scares you. If you do know about planning, it infuriates you. You can’t win.
Thankfully, planning is about to get a whole lot easier in 2022. Recent changes to permitted development rights mean that you can convert almost any building into C3 residential under Class MA. There are a whole lot of technicalities to this. In short, it has made getting planning permission easier. The full changes to planning would take up a whole article in themselves. However, I do cover them in more detail on my course.
What does easier planning mean for you? It means that the doors of opportunity are now open wider than they have ever been before. More commercial units will become developable because planning regulations aren’t as strict. With some properties, you won’t even have to go through planning at all, you’ll just need to get Prior Approval instead.
Instead of worrying about regulations, you can now worry about the colour of your new Ferrari. Well, you can if you win the lottery. Don’t get me wrong, property development can easily allow you to have the car of your dreams (and so much more). It just takes knowledge and experience, or mentorship from someone who already has that. The new opportunities that commercial conversions bring can literally change your life. You just need to know how to utilise them.
2022 – Are you ready yet?
2022 is bringing some serious opportunities to the property industry. The question is, are you going to be ready for them when they come? If you’re an experienced property developer, then we hope that this article has been informative for you, but if you’re new to property and want to take advantage of this opportunity, then call Progressive Property’s friendly team on 01733 898 557.
If you’re excited after reading this article, then you have every right to be. I don’t know what your goals are. They could be a house in the hills or private education for your kids. What I do know is that they are achievable. I’d go as far as to say that they’re now more achievable than ever with the new changes coming to the industry next year. It won’t be easy, especially for the inexperienced. That is why I’m offering my course to people who are serious about their dreams. Please just remember that spaces are limited, so I recommend booking now before this new opportunity is common knowledge. Simply reserve your space by calling 01733 898 557.
Want to know more or have a questions? Then simply contact us today and one of our friendly team members will be on hand to help you.