Housebuilder
Housebuilder: Small sites, new homes. A small housebuilder makes its money on the land, not the bricks. You buy a site, carry planning risk and interest for a…
Small sites, new homes. Buy land, build homes, and hope the market holds.
A small housebuilder makes its money on the land, not the bricks. You buy a site, carry planning risk and interest for a year or two, build with subcontractors under CIS, and see nothing back until the first completions land at the solicitor's. New homes are zero rated for VAT, so you reclaim the VAT on materials and charge none on the sale, which is worth real money. Everything depends on the gap between what you paid for the land and what a buyer will pay 18 months later, and on a warranty provider signing the plots off.
- Setup costs
- £150,000 to £750,000
- Competition
- Medium
- Category
- Construction & Property
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