property development

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Hi Ron
first get the info on this post.
The number one rule for me is.
Make sure that the figure stack up before you start.
If you sit down with land,all fees,building cost, taxes and selling cost add all up.
Then find the sell price take the above off the sell price and there must be a min of 20% profit if there isn’t you won’t get funding easy so for me forget it.
If reading your post correctly and your at this stage you need to do a lot of organisation to get the correct people into the right sections within your project.
Add sorry to be the provider of bad news but you are a long way from the finish line.
Get an external town planner (they arn’t cheap approx 2,000 but you get it thru council quicker and for you they will be invaluable with information of need to be done.)

here to help

Hi Ron
I think it is great that you are looking to do your first development. I have done a few and beleive that when you accomplish it you will realise that property development is fairly simple if you follow some rules

1. Get a good planner if in Victoria try Taylors Development Strategists 95012800
2. If in a metro area use one of the big building companies like Pioneer etc… using their existing design or see if it can be modified. If you are in a country town the building costs are higher but still see if there are the big building companies i find them easier to deal with
3. Find a good broker as you are doing only 4 units it will be possible to get the rates at residential not commercial (2-3% difference) Origin who are part of anz seem to be good
4. have the worst case scenario of not selling any in your bus plan

Expect it to take 9 months for planning approval

good luck

Hi Ron

Welcome to the wonderful world of developing!

As mentioned above, you will have lots of homework to do. First and foremost, do a comprehensive feasibility on your project. I know that software has been recommended but a spreadsheet will do the same thing. You will need to take into consideration the following (and more) – design costs (architects, surveyors, engineering, etc), DA lodgement costs, council contributions (DA will tell you this), purchase price of land, construction costs, finance costs (including establishment fees, bonds, etc), interest on loans, construction costs including site costs, subdivision costs, marketing costs (if you sell them), legal on both pch of the property (if you don’t already own it) and the sale of the units (if that’s what you’re planning to do).

The potential errors are underestimating costs or leaving out costs, not budgetting for full finance costs, not including a margin for hold ups for bad weather, slow sales, etc, overestimating final values of completed properties – just to name a few.

You can get some free info on our site.

Hope this helps.

Megan

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