Hi , we are new to your web site and would like to ask the folowing : firstly we have a property 1060m2 in the western australia area . we have been re-zoned to r100 comercial mix and are interested in development . The proposal of new building envelope sugested by local shire is 2x 3-5 storie units in front half of block and 2x 2 storie units in back half .
not having capital , we are wondering how to go about funding a redevelopment of this magnitude.thanks in advance
TerryTerry,
Yours is not an uncommon situation – got the right property, but not enough cash – and there are a couple of things you might consider to get things moving:
- Consider making a proposal for the development of the land, then selling part of that land with the relevant approvals.
- Do the work in getting the development approval then seek finance on an "as if complete basis" or as a percentage of hard costs for the works.
- Find an equity partner with the cash and expertise you lack.
- Plan and build the development in stages.
Good luck with your project.
Christian
Thanks for the reply, we also visited your web site and will start with a restrictive covenant search.
We do have a approved Precinct plan which contains design criteria and precinct text so i guess that may be useful when searching for a builder.Thanks again
Terry
Due to the size of your development – this will fall under commercial finance.
Have you spoken to any broker or bank about your project to see if your financials is good enough for a lender to accept the deal?Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
tez.mars wrote:ChristianThanks for the reply, we also visited your web site and will start with a restrictive covenant search.
We do have a approved Precinct plan which contains design criteria and precinct text so i guess that may be useful when searching for a builder.Thanks again
Terry
No worries Terry. Some early strategic planning advice would also be useful.
See if you can find someone who services your area and can help you decipher the planning strategy.
The approved precinct plan will be the key in determining your options.The construction doesn't seem to be a small one by any chance and so seeking some professional help would be a very good thing. I would comply to Christian that the planning strategy holds the key here as this is what will help to get the funding and the other approvals sorted out in a proper manner and set the project going a long way ahead.
Hello Michael
Thanks for the reply, as of yet we havn't spoken to any broker or bank.
My wife and myself are both self employed , i guess anyone that has applied for such loans most times come up a little short.
I'm not convinced that we want the headaches involved in financing, but are certainly interested in any input or advice.cheers
Terry
Cheers Sheds
Yes this project will we a big one, some of the prelim's have already been taken care of but i understand from advice that we have a long ways to go.
We feel that because we are both self employed , the initial hurdle is a little greater as far as financing anyway. But with a good starting direction i'm sure we could find a builder with the same interest as ours."Thanks
Terry
Christianb gives you good suggestion about property investment…
You can apply for commercial finance and plan for build…
Thanks….Hi,
I am new to developing and just wondering how this is going? What did you decide to do?We are in the process of getting a DA for a 13 unit 5 storey apartments in Brisbane and hopefully will have the DA in about 3 weeks. The first 2 people on our team were the town planner and architect. The architect will work out how many units can fit on the block allowing for the GFA and site coverage and what the demand is for the units ie 1, 2 or 3 bedroom. Both the town planner and architect have been invaluable as we have worked our way through and they have provided the contacts for other consultants as required eg surveyor, civil engineers, traffic engineers, landscape architect, acoustic engineers etc. To date the DA has cost approx $100K in various Council and consultants fees. Once the DA is through then we will look at the architect preparing working drawings that we can then get builders to provide quotes. At the same time we will need a solicitor to prepare body corporate information to enable us to start getting presales before we approach the bank for construction finance.
The DA takes time and money and that is why a lot of professional developers just buy and develop sites that have the DA already in place. Having said that, for the person with patience and money to complete the DA process, there is money to be made selling the DA site rather than proceeding with the construction.
I hope this has helped.
Brian good luck on getting unconditional pre-sales in the current Brisbane market.
Might be a matter of putting in more cash or equity and going for a net GST GRV loan.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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