Real estate financing is not all about high returns from projects that do not add any community benefits. It is important to understand the community priorities and incorporate those elements into the design from the get-go rather than squeezing every square inch possible into a project. Return of investment is measured not just in dollars but also in intangible community benefits that will help support our future projects in a given community.
Real Estate Development and Financing
Priorities of our communities have changed drastically with the realities of climate change, shifting demographics and socio-economic drivers that are shaping our cities. We can no longer afford to view real estate development and financing in isolation. A broader and more inclusive viewpoint is needed to ensure communities are not just welcoming to new residents but are open to accommodating responsible developments that help fill the void and increase housing options.
We have a growing, thriving population that needs housing, and we have to balance this need by taking a very serious look at the challenges we face environmentally, socially and economically. Some developers are embracing the transition that our cities are going through, accept the challenge, and demonstrating that with some creativity, economics, environment and community needs can be balanced to bring sustainable, beautiful, viable and affordable projects to life. However, oftentimes these projects are faced with complications in obtaining financing and raising money. This is where Aultrust will step in to bridge the gap and smooth the transition from concept to a funded project that can be become a reality.
Rent-to-own and Lock-off units
Rent-to-own programs effectively solve one of the biggest impediments to homeownership for many middle-income families who are faced with the daunting challenge of having to balance between the needs of their children, the extraordinarily high cost of living in the big cities and saving up to buy a property. For every renter who opts into a rent-to-own unit, a rental unit that he/she used to occupy will become available, and as a result, the rent-to-own program will inadvertently have a proportionally positive impact on the rental supply as well.
Lock-off units are stand-alone extensions of a unit, complete with a kitchenette and separate entrance, which provide flexibility for the owners to use as needed for their more senior members or teenagers or rent them to create additional income for the family. Lock-off units add to the community rental pool with affordable rental units, more affordable rental options for the younger member of the community.
Building amenities for the community
Most developments offer basic building amenities to attract buyers. However, with the change in demographics and way of life, different amenities are needed to benefit the future community. Demand for coworking spaces, car share, dog washing spaces, green roofs, community gardens, and others is rising, and few developments are able to attract real estate financing for these kinds of amenities. Nonetheless, these amenities are what makes a community within a community and offer a different way of life for many.