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Rawson Developers and Homebuilders taking on work for other companies 2009-05-18
Responding to the downturn in new developments, Rawson Developers and Homebuilders are now offering their services to other developers and landowners who may not have the same depth of experience in this field.

Rawson Developers and Homebuilders’ MD, Paul Henry, said that his company can be of assistance to developers and landowners who have access to funds and who understand full well that (a) building costs can only go up and (b) that difficulties in obtaining bond finance have created a very active letting market.

“Consider for a moment the challenges facing a couple intent on buying, say, in the middle range R1,5 million bracket. In today’s market they would require a R300 000 deposit plus R100 000 to cover costs. Their bond repayments would be in the region of R15 000 per month, which means that their joint income would have to be about R45 000 per month.

“If, on the other hand, they temporarily go the rental route, they could live in a house of the same standard for R7 000 per month – and possibly save a few thousand on the side each month. That is why the rental market currently offers opportunities.”

Rawsons, says Henry, can give the clients a straight construction service, i.e. build their developments for them for a fixed price and within a specified time – but they can also add considerable value by helping with feasibility studies (“something in which we have extensive experience”); appointing and liaising with professionals; gaining plan approvals and marketing and selling the end-product through their nationwide network.

"Many people who have inherited or bought land several years ago have very little idea of how to go about developing it," says Henry. "This applies particularly to land holdings in less affluent areas. Today there are good opportunities for developing units in R250,000 to R700,000 bracket and, as I have indicated, in the R800 000 to R1,5 million bracket. "

One southern suburb scheme on which Rawsons is now in full swing as contractors will this year deliver 58 apartments.