By giving developers the chance to sell all of a building's units at once BTR is helping bring more security to the industry.
Back in 2017, the Build-to-Rent sector attracted over £2.4bn in investment and was forecasted to grow by 180% in the following six years. With plenty of money being invested into BTR, it’s safe to say this alternative is no longer an emerging market and is firmly here to stay.
Many people classed as Gen Z or Millennials are currently priced out of buying and are instead turning to the rental market to find a home that can provide stability. This is one reason why Build-to-Rent investments are increasingly popular and in high demand—especially as these buildings are dedicated towards rental use, with no risk of an individual landlord suddenly deciding to sell and the tenant having to find a new home.
If a developer sells to a BTR company it removes risk for them, much like it would for tenants who know their rented home isn’t going anywhere.
Simplifying the sales process
One of the current issues faced by property developers is how complicated and risky the sales process is. In many instances, developers rely on individual pre-sales in order to start the construction process and get funds released by the bank. Therefore, developers frequently find themselves selling off-plan, often at discounted levels and to multiple individual investors, which is no simple task..
With the BTR purchase process, the buyer review
s any off-plan, under-construction or built development and, if they like what they see, make an offer for the whole building. This simplifies things for developers as they receive more substantial upfront investment, making it easier to secure the rest of the funding required to finish construction.
A bigger initial deposit also means developers can access better lending rates, helping them increase their profit margin. Alongside this, selling all the units at once makes the whole process much simpler.
Securing a quicker completion date
Imagine trying to sell 200 units across multiple buyers. The amount of paperwork will obviously complicate the process and the need for a sales and marketing team just eats into profit margins. Instead, with a sale to a BTR operator, you can sell the entire building to one company who will take over the property on completion and make sure it remains an exciting destination for renters.
For a BTR purchase, only a single contract needs to be drawn up. With this approach, the entire legal process can be exchanged swiftly.
The Kooky BTR process benefits developers by focusing on quick exchanges and clear timescales, leaving them time to concentrate on the building works, without worrying about any contract delays or buyers pulling out.
Overall, the Kooky BTR purchase process removes a lot of the risk for the developers of Build-to-Rent residential schemes. Large deposits on the whole building and the knowledge each unit is already sold make securing the necessary funding at preferential rates a lot easier for the developer.
We have a unique, Kooky approach to the BTR market, and our process is designed to remove any distractions or complications from your building. So, if you want to find out more about how we do things differently, then contact Nick Belkin, our Head of Acquisitions, on 0207 907 5565.