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Umm what? If your business is building homes and you decide to build multiple developments, you should have a system that insulates you from the risk you have knowingly taken on by making the decision to build multiple at the same time?
This makes no sense to me. If you don't want the risk of building multiple developments you can just build them 1 by 1.
This system just feels designed to encourage risk taking behaviours.
hazzelfrazzel-
This system just feels designed to encourage risk taking behaviours.
And no need to take responsibility for any shortcuts or failures. It's perfect, you can really focus on making money, money, money.
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Depends how quickly you want your new houses, you know the ones that are going to make such a dent in house prices
snottyotter
Howard
Investors too.
I would say that it's not just being doggy and fucking residents. Imagine what happens if you had say 5 blocks to build at £2om each. You can't secure the contractors to complete all in one go and you're financing them one by one for whatever reasons. If problems arise in the construction of one of them you want to limit the losses to that one block rather than risk all of them. Especially if say the total value of all the land could be at the level of the losses involved you could potentially loose everything.
I imagine very big developers borrow at fairly low rates. But smaller ones often pay quite a lot and have much smaller margins than most imagine.