G’day – I’m a first timer who is looking to commence building on áccidental’ investments made previously. With what I’ve read to date I’m feeling that I should concentrate on investing & reselling to build up my cash reserves. To do so I believe I would need to set up my own property investment business. I am employed full time at present & have my own company in place for a previous business that has wound up. How do you go about registering as a property developer? Is this what is required? Shane
Hi Shane
Depending on which State you are in may determine the requirements needed to act as a property developer and whether any particular license is required especially if you intend to sell your own properties.
Other issue you ned to think about is how you will finance these acqusitions as a property developer the loans will be considered Commercial in nature and as such Commercial terms and rates will apply.
Richard Taylor | Australia's leading private lender
The licensing required will also depend upon whether or not you intended to be the builder or just the developer. If you are only the developer, engaging the architect, engineer, other consultants and the builder then you probably will not need to hold a builder's licence. On the other hand, you intend to control (including project manage) the works, or act as principal contractor etc then you will need to hold the appropriate licence (this varies from state to state, in some states you only need a licence for residential building work).
As Richard points out, if you intend to sell the properties without engaging a real estate agent, you will be required to hold a corporate real estate licence (with someone fully qualified as the licensee).
In Qld if you sell direct more than 6 properties a year you are required to hold a Developers License under the Property and Motor Dealers Act.
Richard Taylor | Australia's leading private lender
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