Red Banksia

06/01/2023

Are you an investor? What about real estate?

Ever thought 'what is the best way to invest in property?'

Investing in property can be a good way to generate income and build wealth over the long term. There are a few different ways to invest in property in the UK, including:

Buy-to-let: This involves purchasing a property, typically a rental unit, and then collecting rent from tenants.

Flipping: This involves purchasing a property, making improvements, and reselling it for a profit.

Development: This involves purchasing land or a property and then developing it, either by building new structures or renovating existing ones.

REITs: A REIT (real estate investment trust) is a company that owns and manages a portfolio of properties, which can include residential, commercial, and industrial properties. Investors can purchase shares in a REIT, effectively allowing them to invest in a diverse range of properties without having to purchase them individually.

Before investing in property, it is important to research and carefully consider your options. Some factors to consider include the property's location, the current state of the housing market, and the potential for rental income or capital appreciation.

04/01/2023

Happy new year and welcome to 2023. It's at the start of a new year that we reflect on the year gone and the year ahead.

Some might ask is property investing worth it in 2023?

It is difficult to predict with certainty whether property investing will be worth it in 2023, as it will depend on a variety of factors such as economic conditions, housing demand, and market trends.

In general, investing in property can be a good way to generate income and build wealth over the long term. However, it is important to carefully consider the risks and rewards before making any investment decisions. Some potential benefits of property investing include:

1. Potential for rental income: If you purchase a property to rent out to tenants, you may be able to generate a steady stream of income.

2. Potential for capital appreciation: Property values can increase over time, which can lead to capital appreciation when you sell the property.

3. Diversification: Adding property to your investment portfolio can help to diversify your investments and reduce risk.

There are also some potential risks to consider, such as:

1. Market fluctuations: Property values can fluctuate based on a variety of factors, such as economic conditions and changes in the housing market.

2. Maintenance costs: Owning a property can require ongoing maintenance and repairs, which can be costly.

3. Vacancy risks: If you own a rental property, there is a risk that it may be vacant for a period of time, resulting in lost rental income.

Overall, whether property investing is worth it in 2023 will depend on your individual financial goals and risk tolerance, as well as market conditions. It is always a good idea to do your research and carefully consider your options before making any investment decisions. You may also want to seek the advice of a property professional such as Red Banksia.

21/12/2022

The Team talking through our latest deal, the Gallop.

In this interview, Atuksha and the Redbanksia team talk specifically about the Gallop investment opportunity. The team run through the investment memorandum ...

19/12/2022

We were interviewed by Simple Crowdfunding recently to talk about our team, our company history, our planning uplift strategy, we comment on the current property market and where we see opportunities.

You can watch the interview on YouTube here:

We've partnered with Simple Crowdfunding for our ""Gallop"" project. The deal details are here: https://buff.ly/3VPzTN7

In this interview, Atuksha interviews the Redbanksia team. Learn about the team, their company, their planning uplift strategy and their view of the current ...

19/12/2022

We were interviewed by Simple Crowdfunding recently to talk about our team, our company history, our planning uplift strategy, we comment on the current property market and where we see opportunities.

You can watch the interview on YouTube here: https://buff.ly/3WvEiEz

We've partnered with Simple Crowdfunding for our ""Gallop"" project. The deal details are here: https://buff.ly/3VPzTN7

In this interview, Atuksha interviews the Redbanksia team. Learn about the team, their company, their planning uplift strategy and their view of the current ...

15/12/2022

Where do you see the biggest risk to property development today?

Let me run you through where we see the risks and what have done about it on our most recent project, the Gallop (open for investment here Offer Detail (https://buff.ly/3XSFpzH)).

Is the biggest risk getting council planning approval?

We have a deal ready for investors where the planning is fully supported by the local council. Our planning strategy has been to work with and not against what the local council want, houses and not flats.

Is the biggest risk having confidence in the development end sale values?

We rely on comparable sales to work out unit prices and £SQF that is achievable for our developments. We then discuss values with local agents that we trust and know have a good understanding of values in the local area. Finally, we stress test our values to make sure our developments can handle price fluctuations and still return a profit.

Maybe the biggest risk is the cost to build?

Our partner builders are diligent in their numbers and have a track record of quoting accurate to their builds. On our last development, a £185k new build, we ended up at £190k and this was during covid and material cost pressures. Even though we trust our builders, we budget 8% contingency on build costs just in case.

Is the biggest risk financing?

We’ve been working with our lending partner for some time on this deal and agreed interest early on through the purchase process. Our purchase and development finance for the Gallop has been locked in at 9.75% pa, a good deal in today’s market where developers can typically expect to pay over 11% interest on their projects.

To access the full project documentation, to join the conversation and to invest, click: Offer Detail (https://buff.ly/3XSFpzH)

Invest in property and raise funds through the crowd. Equity and Peer to Peer Loans (including ISA Investing). Join the growing online property community to find out more.

12/12/2022

Our newest deal is now live and is open to investors!

We have partnered with Simple Crowdfunding to raise funds for the Gallop, a bungalow purchase that we will replace with a pair of semi-detached houses.

The investment will be available until the end of December, after which point we will be going ahead with the purchase and the opportunity will be closed.

To access the full project documentation, to join the conversation and to invest, click:

Simple Crowdfunding is a property crowdfunding marketplace that offers both Equity and Peer to Peer Lending projects (Including ISA investing). Invest in property or raise funds from the crowd.

02/12/2022

What is Permitted Development?

Under National Planning rights, certain types of property development is supported without the need to follow full planning permission. Knowing what meets permitted development rules is a good way to de-risk the planning approach to some property investments.

How has Permitted Development been used for this investment?

For our most recent project, the Gallop, the investment opportunity has two development strategies.

1. Option 1 - The baseline. The first is to use permitted development to turn the site into a bigger and more desirable family home. This has already been approved by the council and this means we know we can build a nice large family home. This option now has no planning risk but naturally doesn't have as high an ROI (2%) when compared to the primary strategy.

2. Option 2 - The primary strategy. Using various local precedents and professional experience, the primary strategy intends to develop the site into two large family homes and split the site into two. This approach doesn't meet the permitted development rules and requires a more detailed planning application. While this strategy wouldn’t be pursued unless there was a high level of confidence in the process, it does have planning risk associated with the approach. Subsequently, this strategy will see a much higher ROI of 37%.

To access the full project documentation, to join the conversation and to invest, click here:

Invest in property and raise funds through the crowd. Equity and Peer to Peer Loans (including ISA Investing). Join the growing online property community to find out more.

20/11/2022

Is it worth doing preapps?

Slow response times and advice that changes between preapp and full planning response makes it increasingly important to know when to use a preapp service and when to go straight to planning.

Red Banksia takes it on a case by case depending on whether we need full communication engagement with planners or need certainty and speed.

18/11/2022

What should landlords do who have had enough?

Low returns, ever-increasing regulation and rising interest rates for those with loans. Development investing could be an option. Hassle-free fixed returns of 10%+ for straight loans and higher returns for equity investing.

Red Banksia would like to chat to any landlords who are selling but want to stay in the property sector without the hassle.

15/11/2022

In an uncertain market securing lower purchase prices is essential. This means sticking to offers, this means losing some sites, which means having a large pool of target properties. We have a property-finding filtering system that is set up to handle this challenge.

10/11/2022

Check out this beauty! 46 the Gallop CR2 7LP

We have just exchanged contracts and have completion set for 13 January 23

You know what is great about this project? We have partnered with Simple Crowdfunding to raise finance. This means the deal has gone through an additional level of due diligence done by the crowdfunding platform who are FCA regulated.

Do you want to know the returns on this one?

You're going to have to sign up at Simple Crowdfunding to get involved in this deal:
https://buff.ly/3TrlRzd