Hi,
I've recently returned from overseas and am looking into trying to get into Property Developement
full time.
I'm looking to purchase property with the intent to demolish, subdivide, design, new build and sell.
Doing a quick search on the internet, there seems to be a few companies available that offer a full
development service. That is co-ordinate:
– the subdivision of land
– Town Planning permits
– Design on new townhouses (architectural and structural)
– Tendering to engage main contractor
and most things in between.
I'm new to property development but not new to construction having worked for main contractors for over 10 years and was looking into
managing all the above processes myself by engaging each consultant separately – effectively unbundling the consultants and trying to
reduce cost.
I'm just wondering what people's opinions are on approaching it this way?
Hi Urilla
Disgree there are many companies that offer such a service depending on where you are look to develop.
Course financing such a proposition isn't easy unless you are fairly well cashed up as the asset value diminishes to land value once you knock down the existing property. Then if you are trying to do it by way of residential financing you have the potential issue of multiple properties on a single title.
All of which can be overcome depending on a number of factors.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If you are not new to construction then why wouldn't you do the above yourself? Is a time poor issue?
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Many professionals (especially in property development) have a good network of other professionals who they prefer to work with. I only refer clients to a small group of people in various industries as the last thing anyone wants is cost blowouts, poor quality of work or being stuffed around.
If you're looking to employ each person separately then this could be another option to reduce costs, as well as improving productivity as the work is familiar to everyone involved.
Cheers,
Seems to me Urilla that although you have some background in the field, you may need someone to step you through the entire development and who can equip you with the information you need to then amplify this on a larger scale once you have mastered something like a duplex development. I am working with a company who is stepping me through this process for the first time in QLD and only charge a small fee for service while they can educate you in all things property developing like appraising the land, showing you the initial feaso through to timelines on the entire process that takes you through the fees like headworks, survey, strata, council permits, DA approval process, then into building quotes and do the entire management for you from start to completion. Not a bad start to your developing career when you get experts to help you through it. I am doing one in Mackay at the moment and loving it. They are the guys at Portfolio Property Investments. If you are looking for a larger developing experience then not sure.
Thanks for everyones comments. I'm inclined to engage all parties (architects, engineers, town planner) separately and manage them myself purely to try and reduce cost. By the way I'm based in Melbourne. Thanks again.
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