Finding Secure Investments in the Current Climate: How Property Development and Renewable Energy Can Help

March 23, 2023  asset, buy to let, diversify portfolio, How to profit from inflation, investment, joint venture, property development, property investment, property joint venture, tech investment, uk property development, what to invest in now, what to invest in right now

In the current economic climate, investors are looking for secure investment opportunities that can provide stable returns while mitigating risks. Property development and renewable energy are two sectors that offer potential for long-term growth, and combining them can provide an even greater opportunity for secure investments. In this blog, we will explore how property development and renewable energy can help investors find secure investments in the current climate.

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  1. Property Development

Property development can provide investors with a secure investment by offering stable returns over the long term. As the population grows, the demand for housing increases, creating opportunities for property developers. By investing in property development projects, investors can benefit from steady rental income, capital appreciation, and tax advantages.

To mitigate risk, investors can focus on well-located properties with high rental demand, ensuring a steady flow of income. Additionally, investing in property development projects with a strong Gross Development Value (GDV) can help ensure profitability and reduce risks associated with underperforming projects.

Willow Rivers Wealth offers a range of property development investment opportunities in prime locations across the UK. Our projects have strong GDVs and are designed to deliver consistent rental income and capital appreciation. Learn more about our property development opportunities here.

  1. Renewable Energy

Renewable energy is another sector that offers potential for long-term growth and secure investments. As the world transitions towards more sustainable sources of energy, the demand for renewable energy is increasing, creating opportunities for investors.

Investing in renewable energy projects can provide stable, long-term returns through the sale of electricity or energy credits. Additionally, renewable energy projects can benefit from tax credits and government incentives, reducing risks and increasing returns.

Willow Rivers Wealth also offers investment opportunities in renewable energy projects. Our portfolio includes solar, wind, and hydro energy projects, providing investors with a diverse range of renewable energy investment options. Learn more about our renewable energy opportunities here.

  1. Combining Property Development and Renewable Energy

Combining property development and renewable energy can provide even greater opportunities for secure investments. Property developers can integrate renewable energy systems into their projects, reducing energy costs, and increasing the value of the properties.

Investors can benefit from the stable returns of property development projects, while also investing in renewable energy, creating a more diverse and secure investment portfolio. Additionally, property development projects with renewable energy systems can benefit from government incentives and tax credits, reducing risks and increasing returns.

Willow Rivers Wealth’s property development projects often incorporate renewable energy systems, providing investors with a unique opportunity to invest in both sectors. Learn more about our combined property development and renewable energy investment opportunities here.

Conclusion

Investing in property development and renewable energy can provide secure investments in the current economic climate. By investing in well-located properties with high rental demand and strong GDV, investors can benefit from steady rental income and capital appreciation. Additionally, investing in renewable energy projects can provide long-term, stable returns, reducing risks and increasing returns. Combining these two sectors can create even greater opportunities for secure investments while contributing to a more sustainable future.

At Willow Rivers Wealth, we specialise in property development and renewable energy investments. Contact us to learn more about our investment opportunities and how we can help you find secure investments in the current climate.

Why JVing with an existing developer is better for UK property development

March 10, 2023  buy to let, inflation proof investments, Investments, joint venture, property development, property investment, property joint venture, uk property development, Uncategorized, what to invest in now, what to invest in this quarter

The UK property market is notoriously difficult to navigate, with high costs, complex regulations, and a shortage of affordable housing. For those looking to enter the market, there are two main options: to start a property development project from scratch or to joint venture (JV) with an existing developer. While both options have their advantages, there are several compelling reasons why JVing with an existing developer is the better choice for UK property development.

JV
JV

Entering the UK property market can be a challenging task for anyone. However, JVing with an existing developer can provide access to valuable expertise. An experienced developer will have a wealth of knowledge regarding the local market, contacts with suppliers and contractors, and a deep understanding of the complex regulatory landscape. Trying to build this expertise from scratch is time-consuming and costly, and mistakes can be costly. A JV partner can provide a valuable shortcut to success.

Another benefit of JVing with an existing developer is the sharing of risk. Property development is a high-risk business, with a significant amount of capital and time invested in each project. By JVing with an existing developer, you can share this risk, minimizing your exposure to financial losses. Sharing risk with a partner also provides an opportunity to leverage each other’s strengths, expertise, and resources to ensure project success.

JVing with an existing developer can also help to reduce costs. An experienced developer will have established relationships with contractors and suppliers, as well as access to financing at favorable rates. They may also have economies of scale that can reduce the costs of materials and labor, which can be particularly beneficial when working on larger projects.

Developing a property from scratch can be a complex process involving numerous stakeholders, including architects, contractors, lenders, and regulatory bodies. With a JV partner, many of these processes will have already been streamlined and optimized, reducing the time and effort required to get a project off the ground.

Lastly, JVing with an existing developer can also provide improved exit options. By partnering with an established developer, you may be able to sell your share of the property development project more quickly and easily, freeing up capital to invest in other projects or diversify your portfolio.

In conclusion, JVing with an existing developer is the better option for UK property development. It provides access to expertise, reduces costs, streamlines processes, shares risk, and offers improved exit options. By working with a JV partner, you can leverage their knowledge, experience, and resources to achieve success in the competitive UK property market.

Navigating the Regulatory Minefield of Buy-to-Let: What Investors Need to Know in 2023

March 8, 2023  buy to let

The Buy-to-Let market has long been a popular investment choice for those looking for a steady income stream. However, as regulations continue to tighten, many experts are predicting the death of buy-to-let as we know it.

So, what does this mean for those already in the market, and what should potential investors consider before jumping in?

Buy to Debt
Buy to Debt

The reality of buy-to-let in 2023 is a regulatory minefield, and investors need to be aware of the various lender rules, fees and deposits, HMO licensing, and taxation regulations.

All mortgage lenders have different lending criteria, but most buy-to-let mortgages require a deposit of at least 20-25%, and around 40% to secure the best rates. It is important to meet your lender’s affordability rules and interest cover ratios, and navigate any lender limits on the number of properties in your portfolio.

Since 2019, landlords and letting agents have been prohibited from charging tenants certain fees, and there are now caps on the amount of deposit or holding deposit money landlords can take from tenants.

Landlords can only charge tenants rent, a refundable security deposit, a refundable holding deposit, a default fee for lost keys or late payment of rent, or a fee for requesting changes to a tenancy agreement during the fixed term.

Landlords who rent out Houses in Multiple Occupation (HMOs) may require a licence to legally let their properties out. HMO licensing is mandatory for properties with five or more tenants from more than one household, known as “large” HMOs. Smaller HMOs rented by fewer than five tenants may not require a licence.

However, many local authorities operate additional licensing processes, meaning all HMOs in their area require a licence, regardless of size.

Taxation is one of the most complex rules around buy-to-let property, and landlords need to be aware of regulations around stamp duty, income tax, capital gains tax, and deductions of mortgage interest. Landlords and those buying second homes must pay a 3% stamp duty surcharge on each property they buy.

If you make a profit from renting out a property, or properties, you may have to pay income tax on that profit. It is possible to deduct certain costs from your rental income, such as water, gas, electricity, and council tax (if you pay them rather than the tenant), insurance costs, costs of services, letting agent management fees, accountancy fees, ground rent and service charges for leasehold properties, maintenance and repair costs, and replacement relief on items such as furniture, carpets, appliances and technology.

With all these regulations, it is no surprise that some experts are predicting the death of buy-to-let. In 2023, Lewis Shaw, Riverside Mortgages, advised that if he were holding a buy-to-let mortgage above 60% LTV, he would be selling up and looking to do a deal faster than a Tory peer with a dodgy PPE contract.

Potential investors need to be aware of the regulatory environment and do their due diligence before making any decisions.

In conclusion, while the death of buy-to-let may not be imminent, the regulatory environment has become more complex, and investors need to be aware of the various rules, fees, and taxes. Potential investors should take the time to research the market and understand the risks before jumping in. Property development now looks a much more secure and higher yielding option.

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