An investor friend of mine with substantial capital (and access to others with more) recently came from China and want to know the real estate investment landscape. He is quite ambitious and have asked me to provide him with basic information on how to build condominium projects and detached home projects (as in an entire development from start to finish).
I would like very basic answers to these questions:
roughly how long does it take to go from drafting initial plan to closing the homes for both condo and house
which types of professionals would i need to contact for this process? (e.g lawyers, accountants, surveyors etc. if you can please be specific on which specific branch of professionals i need ie. condominium/land development lawyer)
very broad strokes of the steps involved in the process (e.g creating legal entity, sales, construction)
I really appreciate any comments as this is obviously a daunting task.
p.s. I am actualy from Canada but I figured that things would be similar in Australia
Some very basic answers to your questions:
Firstly, the term "condominium" is not commonly used in describing Australian real estate types. Instead, they are referred to generically as units, or more specifically as apartments or townhouses depending on the configuration.
- Allow 18 months from concepts to completion for a smaller project, of which 6 months will be dedicated to town planning. Occasionally this will take less time, and occasionally more.
- You will need a good conveyancing lawyer to help with purchases and sales of property, a design consultant to help with town planning, design and documentation, a building contractor (builder) to get them built, a land surveyor to handle the subdivision and a real estate agent to make sales on your behalf.
- There are several different entity types and structures – including companies and trusts – but this is an area for specific legal guidance on a case by case basis. You will need both legal and accounting advice for this.
You will need to establish an entity to buy and sell property. Once that entity has secured property for development (and one would assume you have tested the feasibility before making purchase) the proposal will require town planning permission (a DA or TPP depending on the state or territory in which the property is located) will then be constructed in line with the permitted use. The properties can then be subdivided in plan or strata and sold or rented individually.
This is by no means an exhaustive description of the process, but is hopefully enough to give you an idea.
christianb just want to say that your post was very helpfull. thanks for the input
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