While most real estate development projects tend to get underway in spring and early autumn, the year’s final quarter has some big advantages for those not quite ready to enter hibernation. We’ve got nine reasons to kickstart that project before the new year.
1. Get ahead of the competition
While many real estate developers and investors postpone their plans until January, launching ahead of the curve lets you stand out in a less crowded market. Starting your real estate project before the new year will give you a strategic head-start, positioning your project for smoother progress and early success.
Because construction projects tend to taper off at the end of the year, contractors, consultants, and vendors often have more availability in November and December. This means it’s easier to secure the best talent and resources without competing against the post-holiday rush.
It also means you’ve got them on your books before other real estate developers can snap them up when the market picks up again in January.
2. Leverage tax benefits
Starting your real estate project before year-end can offer significant tax advantages. Expenses your project incurs during November and December – such as permits, design fees, and initial construction costs – may be deductible in the current tax year, potentially reducing your taxable income.
Also, if you place certain assets (like equipment or structures) into service before December 31, you might qualify for accelerated depreciation: allowing you to claim more substantial deductions sooner.
These financial benefits can improve your project’s overall return on investment while positioning you to enter the new year with a strong fiscal footing.
3. Secure financing before potential rate changes
Interest rates fluctuate frequently, and acting in Q4 gives you the chance to secure current rates before any year-end adjustments.
Whether more rate cuts are coming, or whether the Fed will raise them again, remains to be seen. Either way, it can have a big impact on real estate development projects: we’ve previously written about what Fed rate cuts mean for property investors and real estate developers.
Locking in now means a clear understanding of what you’re getting into, rather than trying to time the market and gamble on any potential changes.
4. Utilize year-end vendor discounts
Acting before new year gives you the opportunity to lower overall project costs, stretching your budget further while securing the resources you need to jumpstart your project.
November and December are renowned for year-end discounts, and starting your real estate project at this time of year allows you to take advantage of lower prices.
Because it’s a quiet time of year, many vendors offer holiday promotions or special pricing to boost sales. This is often motivated by their goal to clear out inventory before the start of the new fiscal year, which can lead to significant savings on materials and equipment. This adds up to a lot of money, especially if you’re working on a larger project.
5. Take advantage of the seasonal workforce
Many construction professionals and skilled tradespeople seek additional projects at the end of the year to close out their schedules, making it easier to find experienced labor.
Because it’s a quieter season, there’s usually less competition for contractors and resources: giving you more flexibility in assembling your team and negotiating terms.
As well as being easier to put together a ‘dream team’, this also means you’re less likely to experience delays than during busy periods. If you’re an experienced real estate developer you’ll already know that bottlenecks are one of the biggest project risks. Delays can incur carrying costs and result in a smaller profit, as well as being frustrating, and working during a quiet season helps keep things running smoothly.
6. Capitalize on the real estate market cycle
Real estate agents are keen to get properties off their books before the holidays, as the market tends to slump for a few weeks before recovering at the end of January. Sellers may be willing to accept a slightly lower purchase price to get the deal done. After all, if it’s not sold by December 25th, it could sit on the market for a month before more prospective buyers come along.
Starting your real estate project before the New Year also positions you to align with the real estate market cycle. If you get started now, your project can be ready to hit the market during spring and summer: the busiest seasons for real estate.
This timing increases your chances of attracting prospective buyers or tenants when demand is at its peak.
7. Set a strong foundation for the new year
It’s tempting to kick up your feet and relax during the winter months, but starting your real estate project before New Year creates valuable momentum that carries into January and beyond.
By getting the ball rolling now, you’ll enter the New Year with your building plans already underway: setting a positive tone for steady progress and eventual success.
This early start also allows you to finalize critical components like plans, permits, and early-phase work, ensuring your project is well-organized and avoiding the inevitable delays that come with the January rush. Building this solid foundation now helps you hit the ground running when the new year begins.
8. Flexible permitting and approval processes
If you’re not ready to break ground on a construction project, use this time to put together a business plan and start getting your paperwork in place.
Regulatory offices often experience a slowdown toward the end of the year, making it easier to get hold of officials and secure the necessary permits without long wait times.
Acting now means you can avoid the January bottlenecks caused by an influx of new applications and development plans, so your project can move forward without unnecessary delays.
This proactive approach gives you the chance to focus on construction and execution as soon as the new year begins.
9. The psychological advantage
Don’t underestimate the benefit for your mindset. Taking action before January will give you a sense of progress and accomplishment, fueling your motivation and confidence as you move into the new year.
It also helps you beat procrastination by sidestepping one of the biggest project risks: the trap of waiting for “the perfect time.” By starting early, you set the tone for a productive and successful project, positioning yourself to hit the ground running after the holidays.
Get financing fast
Whether it’s leveraging those last-minute tax breaks, clinching the best rates before they shift, or assembling a dream team of contractors eager for end-of-year work, now is the time to act. Waiting until the New Year means playing catch-up, while starting now puts you firmly in the lead.
With Express Capital Financing by your side, you’ll find the nimble, supportive partner you need to navigate the year-end complexities and turn them to your advantage.
Don’t wait until January—apply now and start the new year on the right foot.
