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Charting the Way for Converting a Broken Hotel into Affordable Workforce Housing – Tips from Maxwell Drever

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Workforce housing

 

An easier way to make money from real estate investment is to explore the options of using a distressed property in some different way, like converting hotels into affordable workforce housing. This trend has been growing trend over the past year, confirms Maxwell Drever. Hotel conversions are low-cost projects with faster completion times and quicker returns on investment. It is an excellent opportunity for investors to fulfil the dual goal of easing the housing supply while making good money from the project by generating a steady rental income stream. As hotel owners find it extremely hard to maintain the property as business recovery is still a distant dream, they are keen to hand over the property to some developer with investor backing to convert it into affordable multifamily units.

New Workforce housing projects entail higher investment

Starting any Workforce housing project from scratch is a long process and expensive that might help improve supply but does not benefit the middle-income group that looks for affordable housing without government subsidies. Investors must wait too long to break even before they can earn profits. High land costs are one of the reasons for high investment in housing projects, and choosing a suitable site is not easy by complying with the zoning rules and building rules.

These factors are detrimental for creating affordable Workforce housing that the workforce needs badly. The workforce is keen to stay close to their place of work. However, scarcity of land in prime locations and its exorbitant price hinder undertaking affordable workforce housing projects. The lack of interest among developers and investors to invest in affordable Workforce housing only increases the demand and supply gap.

Converting hotels is a viable option

Instead of starting any housing project from scratch, converting a hotel into multifamily units is an easier and faster process for feeding the supply line of housing currently experiencing several constraints, opines Maxwell Drever. Lower project cost is the biggest attraction for investors as they can offer affordable housing by converting hotels and maximizing the space for a better return on investment. Most citizens welcome the conversion projects because they are more eco-friendly. As the hospitality sector is still on its knees despite some signs of recovery, hotels might take a few more years to get back the lost business and commence a new chapter, which is not feasible for many hotel owners. Instead, they prefer to convert the property into housing and recover the money for making its better use in some other ways.

Take the community in confidence

Hotel conversions are not regular housing projects and require suitable strategies for gaining maximum outreach among the community to address their needs and wants while convincingly meeting their expectations. The strategy of partnering with the local municipality speeds up the project implementation as compliances with various rules and regulations become easier. The involvement of the municipality reduces the red tape usually encountered by developers during project implementation.

Thailand -Affordable Housing Investments

Thailand is most popular for its normal components, cordial individuals and remarkable cooking. Besides that, it’s a laid-back relaxation objective, and probably the catchiest spot to live on the planet. No big surprise numerous ex-pats consider this country their home.

Bangkok, the capital of the Kingdom, offers a wide scope of attractions so that is regularly above and beyond as far as tourist spots, dynamic nightlife, gastronomy, and shopping. It is one of the top urban communities on the planet, for the travel industry as well as for lodging.

Thailand raises global property searchers’ consideration because of its reasonable valuing, rental yields and the area’s potential speculation development related to the country’s foundation advancement. With regards to purchasing private property, the most famous objections are Bangkok, Pattaya, Phuket, and Chiang Mai.

As remodelling is less expensive and hotels need the least changes to make it suitable for housing, it helps keep the costs low.

 

People Also Read: 80 Percent of Applicants for Thailand’s Low-Cost Housing Rejected

People Also Read: Thailand’s National Housing Authority Tests Amphibious House in Ayutthaya

 


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