Development

The Andrews Labor Government is getting on with transforming central Dandenong into a vibrant new residential, retail, and commercial hub.

Minister for Transport Infrastructure Jacinta Allan today announced the Revitali​sing Central Dandenong project has taken another step forward, with the project&rsquo;s next phase draft masterplan released by Melbourne developer Capital Alliance for community feedback, along with design renders to give locals a glimpse of what it will look like.

&ldquo;We encourage locals to have their say on the draft masterplan and will continue to work with them on progressing this project &ndash; which will transform Dandenong and create thousands of jobs at a time our community needs them most,&rdquo; said Minister Allan.

The draft masterplan showcases the proposal for Dandenong and includes creating at least 470 new dwellings, a hotel and conference centre, offices and community spaces. An urban brewery entertainment district will also be built, as well as an education facility, retail, a medical facility, a cinema and dining.

&ldquo;We&rsquo;re proud to share this draft master plan with the community to rejuvenate central Dandenong &ndash; with the project to benefit generations to come,&rdquo; said Capital Alliance Founder and Chief Executive Mohan Du.

To maintain the site&rsquo;s strong cultural identity, the project will also deliver a brand-new Little India precinct. The new Little India will provide more modern facilities and services, as well as better spaces for tenants, and will be built as part of the development&rsquo;s first stage to minimise disruptions to traders.

Construction on the development&rsquo;s first stage is expected to commence in 2023 &ndash; which also includes delivering a supermarket, food market hall and residential building. Capital Alliance will invest $600 million to develop the area next to the Dandenong transport hub &ndash; creating more than 2,600 jobs during construction and close to 5,000 ongoing positions once complete.

The project will complement the Labor Government&rsquo;s transport investments in the south-east, better connecting locals with $15 billion to upgrade the Cranbourne/Pakenham line &ndash; slashing travel times, delivering bigger trains and creating a direct link to Melbourne Airport through the Metro Tunnel.

&ldquo;We&rsquo;re not only delivering more trains, more often to Dandenong &ndash; we&rsquo;re delivering more housing, and jobs for this local area,&rdquo; Du added. &nbsp;

The Government is delivering the Revital​ising Central Dandenong project through Development Victoria, with support from Greater Dand​enong Council.

The Government is delivering the Revitalising Central Dandenong project through Development Victoria, with support from Greater Dand​enong Council.

alisonwarters@gmail.com

Central Dandenong revitalization planned

Developers Tribeca and Jayland Group have teamed up to deliver the suburb of Plumpton, near the well-established suburb Caroline Springs, fixed-price&nbsp;house and land packages at Majesty Estate.

It&#39;s just $607,000 to secure a house and land package, which includes the one-level, four-bedroom home.

Majesty has been a popular choice for new home buyers thanks to its affordability, easy access to the CBD, and growing amenities within easy reach.

As the newest estate in Plumpton, it offers sustainability, connectivity and established amenities designed for modern living.

[smartcode_project:default project_id=28198 project_image_fid=155419]

Surrounded by quality educational institutions and various shopping centres, you will be right in the heart of a vibrant location so that the whole family&rsquo;s needs are met.

Each home features one ensuite and one family bathroom as a minimum, while some floorplans feature an extra toilet and refreshment room for added comfort.

Single-storey, four-bedroom, two-bathroom homes are currently available, offering alfresco space that blends your indoor and outdoor spaces, flexibility, and full turnkey inclusions.

[smartcode_project:default project_id=28198 project_image_fid=155421]

High-quality finishes include window furnishing, quality appliances, manufactured stone benches, air-conditioning and quality joinery.

The developers are committed to continuous improvement in their designs, with a six-star rated energy efficiency rating and seven-year structural warranty upgrade options.

Plumpton has&nbsp;convenient public transport options and accessible roads makes thanks to the M8 motorway and the newly upgraded Rockbank Train Station.

The house and land packages on offer are ready to move into straight away, with no hidden or extra costs.

[smartcode_project_cta: project_id=28198]

Situated in Plumpton, Majesty Estate is a popular choice for new home buyers thanks to its affordability, easy access to the CBD and growing amenities within easy reach

max.kwok_55688

Majesty Estate offering affordable house and land packages in Plumpton 

<html><body>
I fear for investors enticed into buying generic off-the-plan apartments at over-the-top prices.
It’s happening in and around the CBDs of all our biggest cities but, increasingly, it’s also happening out in the suburbs. It’s not going to end well for many buyers.
Reports suggest people were clamouring at the weekend to buy units in a proposed development in central Blacktown, paying up to $775,000. 
Nothing wrong with the location – I’ve been advocating the Blacktown area for a long time and it’s delivered handsomely with price growth averaging 13% per year over the past three years.
Blacktown is consistently the most popular suburb in Sydney in terms of sales numbers and the Blacktown City LGA is the leading municipality in NSW for population growth. 
There were 940 homes sold in the suburb of Blacktown in the 12 months to May, according to Australian Property Monitors, with the median house price rising 19% and the unit median up 13%.
But paying the prices reportedly achieved in the Blacktown unit project is beyond reckless. 
The median price for a Blacktown house on land is $545,000 and the mid-range unit fetches $385,000. To pay double the suburb’s median price for an off-the-plan unit flouts basic investment rules and defies common sense.
A couple of years from now, after all the heat and hysteria has evaporated from Sydney markets, I would hate to be the vendor trying to find a buyer for a Blacktown at $800,000-plus, assuming they’re hoping for some capital gain.
Apparently buyers queued up to “snap up” 106 units in Altitude Tower, a planned 24-storey building on the edge of Blacktown’s CBD. Most of them sold at the weekend, reportedly, to a mix of first-time buyers, next-time buyers and investors.
Prices ranged from $395,000 for a one-bedroom unit to $775,000 for a three-bedder on one of the upper levels.
One newspaper report featured a first-home buyer who paid $425,000 for a one-bedroom unit. The median price for all units sold in Blacktown in the past 12 months is $385,000, so where is the value in a one-bedroom unit at $425,000? 
A couple of weeks ago I received an email from a consumer who was thinking of buying in the project. She was considering a two-bedder for around $600,000. I suggested it made no sense to buy a small unit at a price well above the suburb median for a three-bedroom house on land. A view over Blacktown does not justify the price distortion. 
It’s a common phenomenon – new developer product marketed off-the-plan at prices that bear no relationship to established pricing levels in the location. It’s simply bad investing.
I was presented with a Melbourne example recently: a townhouse project in South Morang with two-bedroom townhouses for $443,000, when you could buy the typical house on land for less than that. When the suburb’s unit median price is $310,000, a small townhouse for $443,000 is over the top. 
I urge all investors considering purchases like this to ask themselves this question: is this the best buy I can find in Australia at this moment? 
When buyers are considering off-the-plan developer product at inflated prices, the answer almost certainly is NO. 
TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a> 
</body></html>

terryryder-YECXbqmri2

Paying some top off the plan prices is just reckless: Terry Ryder

<html><body>
With each property development we manage, we'll fine tune the process so that on the next one, we'll do something a little differently to improve the results. 
After completing over 80 developments, our process has become pretty refined. But there is always something we can improve on. 
Sometimes they are just small tweaks that can make a massive difference. This particular example I'll share with you shaved literally a month off the planning process.
At Property Bloom we work across a number of different councils and each council has their own way of looking at and processing a Development Application (DA). It can be easy to make assumptions based on past experience. 
So when we started working in a new location that fell under a council we'd not yet worked with, we assumed they'd review our plans in the same fashion as the other councils. The first few DAs (all assigned to different town planners) were processed within about 7-8 weeks on average. This is a lot longer than we liked but still not as bad as another council's processing times. It fell somewhere in the middle of our best and worst processing times. 
The time your DA is in council is dead time, there is not too much you can do whilst you wait for the consent in case changes need to be made. We tend to use this period to choose material and colours.
Even after working with some councils for ten years, it will come down to the individual town planner who is assessing your DA and what they like to see marked on your plans. If they request 'more Information' then your DA is put on hold until they receive a response.  
This particular DA was assigned to a planner we'd not yet worked with at this council. We received a letter requesting more information on off street parking locations. The plans detailed a single garage for each villa. The requirements are to provide two parking spaces. Obviously one is in the garage - but here's where our assumption kicked in -  we thought the planner could 'see' that the second space was on the driveway as a stacked or tandem parking space.  
We quickly marked this on the plan and immediately sent it to the planner, and within three days we had the DA Consent on our desk. This set a record of processing time with this council - four weeks, down from eight weeks. 
It goes without saying that this was added to our list of what to include on the plans and we made a mental note never to assume. We are now a month ahead of schedule and our client is happy to save time and holding costs.
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
</body></html>

jochivers-wq5Bp59R5a

Drop assumptions and save time on your planning process: Jo Chivers

<html><body>
I’ve spent almost 2 decades marketing and developing apartment projects of varied kinds, big and small, across lots of price brackets and in many locations, and I’ve been interested to observe how apartment living has evolved. We all know that more of us are now living in apartments, a trend that’s set to continue as we see much more high-density living becoming commonplace.
Over the past few weeks I looked at how important ‘place making’ has become as part of the development cycle as many inner-city areas are completely transformed. But there’s another more personal and communal side, a more everyday intimate side to apartment living that I think anyone associated with the development and marketing of apartments should be mindful of, and that’s the value of good neighbours.
Apartment living involves much closer connections between neighbours, a closer sharing of space and facilities. And while not living in the pockets of our neighbours, good relations and a friendly building in a high density community is always desirable.
While we have various area of legislation to help manage apartment buildings, even if the current rules are out-dated, which they are, just what makes a good neighbour and how people living in an apartment generally view the ups and downs of their lifestyle, gives some valuable insights.
Considering this topic further there are, as might be expected, some die hard and often repeated comments about neighbours and the ‘likes’ and ‘dislikes’ about apartment living.
Community Connections
Here’s a quote I recently came across. “The human body has 7 trillion nerves, and you manage to get on every single one of them.” 
The point is I guess that it’s more or less human nature that sooner or later someone or something will get on our nerves and when an apartment project is complete, or when a buyer comes into an already established building, there’s a neighbourhood, a vertical community that the buyer connects with.
In an apartment community, living in close proximity there’s some clear ideas on just what makes good (and unfortunately bad) neighbours. Most items on the list come down to some very basic things, some of which are addressed by rules and regulations, but there are some where improved planning and design can and does make a significant difference.
Good Neighbours
From experience and with lots of feedback from past buyers and my sales team, some of the key attributes of good neighbours revolve around predictable areas like parking, the use of common areas, security, noise, pets, rubbish, smells and building management.
It’s also thought-provoking, but I think not unexpected, that when you ask people, or read research about what individuals like and dislike about apartment living that many of the same topics are always on their list. On the downside many lists of ‘dislikes’ focus on smells, pets, noise and poor management. While the up-side the list often features cost (affordability), easy maintenance, security and personal safety and access to amenities, although in some markets cost might now be a more subjective measure.
Common Areas a Common Concern
Medium and high-density apartment living will always involve the use of shared areas, common property and when you look at some of the issues that people refer to here, I find myself thinking that ‘shared’ or ‘co-operative’ property could be a better way to describe such areas.
Well-designed key facilities that make up common property do play a big part in creating appealing projects, and good neighbours do not neglect or abuse common property. The key issues usually comes down to things like blocking parking access, the abuse of visitor parking, or leaving rubbish in common areas. It’s one of the reasons the building management is a common focus.
When it comes to subjects like smells, noise and pets there’s been lots of work done here, and I think that generally all new buildings avoid concerns of smells and noise and the rules around pets are usually very clear cut. I think that having foyer areas open to natural ventilation and the wider use of tiles have made a big difference to how buildings function and are maintained.
Building design does address noise, but it’s also important to have a well-connected community so that a friendly chat can help diffuse concerns over excessive noise.
Building Management and Community
While a review of Strata Legislation in NSW is hopefully soon on its way and has been a long time coming, good neighbours is still something that can not be forced into place by legislation. There’s always room and I think willingness for having good building community, a community of neighbours, where being social and friendly will usually occur naturally. Keeping an eye open on security, understanding that common areas are shared property and a co-operative approach to management will always be a positive.
In many markets a great deal of attention is paid to price movements and the demand for apartments, still I think we need to always remember that community and the value of good neighbours are important to buyers and all residents.
Market conditions are always evolving and I also consider that keeping these everyday issues in mind does help in planning and designing new buildings and also how we structure key marketing. I consider the value of community and good neighbours are part of what demographics aims to measure beyond the published figures we are all familiar with. A friendly and co-operative apartment community, no matter how big will always help sooth a majority of those 7 trillion nerves!
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
</body></html>

pchittenden-eLqUUC8TWW

The value of good neighbours in apartment living: Peter Chittenden

<html><body>
It's hot, I'm sweating and in the middle of cutting a very good deal. 
This time it's not with a vendor or real estate agent  - I'm not buying a development site - but the negotiation is fierce and taking place with a Thai business woman who owns the stall where I'm buying a much wanted ornament.
I'm on holiday in Thailand with the kids and a trip to the local markets has reminded me of how important it is to negotiate in the correct way to get the best deal. I'm also trying to train up my sons in the practice of negotiation. 
Here everything is up for negotiation. I'm using my proven formula that works not only when I am shopping in Thailand but  also when I'm making offers on development sites and negotiating with builder's, consultants and tradespeople. 
I'd set my sights on a pair of wooden, silver plated elephant ornaments (I know, customs will have a field day with these!).
I'd shopped around and knew what I wanted to pay (completed my due diligence).  I'd asked a few questions about how her day was, what her name is and if this may be her first 'morning' sale. The last question is key as if so, it will bring her luck for the rest of the day (so I'd gathered intelligence and established a relationship). 
Rather than make an outlandishly low offer which I know would insult the Thai sales lady, I politely make my offer with a wide smile on my face but with serious eyes. The offer is a bit under half of what she's quoted. I back it up with a few good reasons. "I saw this one for sale down there for less" or "this one is not as big as the one they are selling there".  After some fun interchanges and much tapping of numbers on an old calculator back and forth, we came to a mutually suitable price and everyone was happy. I have my silver plated elephants and she has a good price. 
I use similar techniques when making offers on properties. At Property Bloom we study the market to establish what the property should be worth, we look at its last sale price and find several comparable property sales to back up our offer.  
Understanding the unique benefits of a property will help you put a value on it. For us, the value lies mostly in the land, it's location and what's under it, not what's on top of it. 
Property Bloom has established relationships with agents and they know our clients are serious buyers that won't muck them around. Our clients have their finance preapprovals in place and can move quickly to secure a property if the numbers stack up and we know it will make a great development site. We'll ask questions about why the property is selling and what the vendor expectations are.  
But there in one major negotiation tactic that always comes into play. It's making sure there is something in the deal for everyone. 
If the vendor is making something from selling and our client is set to make something much more from developing, and if there's a bit for the agent or the person who has referred us, then we can cut a good deal. 
Usually these types of negotiations involve much less  sweat than the ones done in Thailand.
As I start to leave the stall hugging my silver plated elephants, I hear the Thai lady sing 'kob koon Ka' (thank you) as she waves me good bye and adds,' you come back soon?' confirming that she'd like to do more business with me. The same goes for our property deals, we'll always be back for more if the numbers stack up and there's something in it for everyone. 
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>. 
</body></html>

Don't sweat the big deal: Jo Chivers

<html><body>
We're at the pointy end of a development and I'm in the middle of coordinating the last three weeks so everything falls into place efficiently. Our job as project managers is to save our clients time and money and sometimes a development can really drag out at the end of construction.
I thought I'd share all the things that need to happen as a Property Bloom project nears completion and why it's so importance to manage this carefully. 
We have a dual occupancy project that is three weeks out from completion. I can say three weeks confidently as I've worked back from the date of Handover to right now and listed everything that needs to happen. 
We define completion not by the construction work finishing, but by the dwellings being tenanted and earning income for our clients. It's one of the most important stages because our clients have been paying the builder's draw downs through the development and now it's time for them to reap the financial rewards. 
Our process aims for a zero vacancy period and we do this by using something that is intangible yet very valuable. Strong relationships. 
So in these last few weeks we need to micro manage the builder, our client and their bank, a valuer, our property management agency, our private certifier, a landscaper, the estate guidelines manager and our quantity surveyor. 
The first step towards the end is to conduct the Practical Completion (PC) inspection  as soon as we can, but not too soon that the builder is not ready. This is when we'll walk through the villas and compile a list of items that still need finishing off. These may include paint touch ups, cleaning, any damage to exteriors (I always check the gutters and fascias closely as sometimes they harbour dents), chips in anything, landscaping, fencing, blinds, carpet and built in robes, shower screens all installed, sliding door and window tracks cleaned of all dirt (my pet hate is dirt left in tracks!) and I make sure everything works right down to a strong flush to the toilets. 
The builder has a week to address the items on the PC inspection list and then we'll come back and reinspect. In the meantime, we need our client to send the final builder's invoice to their bank for payment. Before releasing the final funds, the bank will send their valuer to check works have been completed. We must ensure the valuer is booked in quickly and has no problems with access otherwise the final payment can be held up.  When the money is released to the builder, keys can be handed to tenants. So no keys, means no tenants, means no income. 
At the same time we ensure that the Private Certifier conducts their final inspection. Once they have done this and have all related documentation,  the Occupation Certificate (OC) will be released.  No OC, means no tenant, means no income.
We've cut a deal with an agency who is going to lease the villas (whether a tenant has actually moved in or not) from the day the OC is received. So it's important we get this as quickly as possible but all Conditions of the DA must be met before the Certifier will release the OC. 
We are also coordinating with an external landscaper who is responsible for the front landscaping and it must meet stringent estate guidelines.  This work has to be completed before the OC can be issued.
We brief our Quantity Surveyor to prepare Depreciation Schedules for our client to use at tax time as soon as we've received the builder's final invoice as this completes the actual build costs. However, the Depreciation Schedules cannot be completed until we have a Handover date. Handover is officially when the builder has received the final payment into their account and keys are released. 
We need to ensure our builder has completed all works in time and there is a good measure of trust as the builder allows our management agency on site to show the villas to prospective tenants before Handover has occurred. Our client also trusts us to ensure the builder gets everything finished after they've submitted the builders final invoice to the bank. 
Communication through this period is key. We talk a lot to our client, their bank and the contractors to ensure everyone completes their tasks when they should - all it takes is for one not to and it can hold up the entire process. 
So in exactly three weeks time this dual occ project will be completely finished, our client will be happy with tenants in place, our builder will be happy they've been paid quickly and we'll be happy that it all came together nicely. 
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
</body></html>

What happens in the last three weeks of a development? Jo Chivers

<html><body>
Today I met with two of my lovely clients to celebrate the completion of their dual occupancy project. Friends Karen and Katie decided to do a joint venture (JV) with the goal of each ending up with a villa after subdivision.
The ladies were not new to property, they both own their own homes and at times an investment property or two but as corporate business women were understandably time poor.  Their goal was to build their property portfolio and share the experience of their first development.  By working together, they would have each other to bounce off any worries and fears as well as celebrate the major milestones.
Their JV worked like a dream as they each brought a different skill set to the project with Karen being focussed on fine detail and Katie on big picture.
"The one thing we didn't want was the development project and JV to impact on our friendship" Katie explained. 
Karen found that it was easier and less stressful going into the JV and her first development project than it was buying her first pre-built investment property.  “Katie and I trusted each other implicitly and we trusted Property Bloom’s experience” Karen said, “and that trust was proven true.  Without exception Property Bloom took care of all the details, keeping everything on track”.
Karen and Katie’s project commenced in October 2014 and was completed within fourteen months.
The moment the land was secured Property Bloom began the DA approval process enabling the DA to be lodged before settlement on the land.  There is a lot of work involved in getting a DA prepared -  detailed survey, geotechnical report and engineering just to get the plans finalised before then organising the Statement of Environmental Effects, Basix report, Bushfire report and plans and external materials and colours to be approved by the land developer. 
But that was the easy part.  The bigger challenge was getting the actual approval from Council!
Now, admittedly, Christmas did fall whilst the DA was in council so that didn’t help but we were surprised after so many weeks of processing and with the DA approval just within in our grasp (or so we thought) that the town planner then demanded a change to the entire roof design.  This involved changes to the engineer's drainage plan as well so it was not a small change.  We were furious with the lack of consistency as a previous and very similar DA sailed through council without this change request.
Once we had the DA approval in our hands we handed over the Construction Certificate approval to our private certifier who is markedly faster than council. There was no further hold ups and construction commenced in July 2015.
By Christmas 2015, less than 6 months later, the project was completed!
The villas came up beautifully and were quickly leased at a good rent with the ladies enjoying close to a 7% gross yield and very pleased with the equity created.
But that wasn’t the end of it.  The final, and biggest decision of all was……. how to divide the villas? Who would end up with which one?
 The villas were almost identical in size but to keep them unique they had different floor plans, different front facades and internal finishes and slightly different private outdoor space sizes.  After some discussion and internal agonising, it was decided that a flip of a coin would determine the outcome.  Let fate decide!  So in a nail salon Katie and Karen stood watching as a stranger they'd asked, flipped a coin into the air.
The villas will be split by way of a Deed of Partition which is a great way for joint venture partners to work together and then end up with a property each. Talk to your solicitor about how this is managed as you must ensure the Deed is formed before the subdivision of the villas is registered.
“The best things we liked about this project were the ease with which it was executed and the stunning look of the finished villas which we could easily imagine living in ourselves”, said Karen.   “All the details were managed by Property Bloom.  “I was doing an extension on my home at the same time and the stress I went through in organising that project was divorce material…. almost.  In comparison, the development of our villas happened in the background, any stresses and concerns absorbed by Jo and her team.  And the best part is that my friendship with Katie has never been stronger, our trust in each other proven.”
 
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
</body></html>

Developing property and friendships: Jo Chivers

<html><body>
Hello Margaret, I am currently seeking (with my partner and my parents) to purchase land and put two dwellings onto it. The land we are looking at is greater than two acres with the houses approximately 200 square meters +. we are thinking sub diving but We are unsure of how to best address this and the processes involved as so many people tell you different things. Are you please able to provide us with an insight into the best was to approach this? Kind regards,
 Ian
 
Hi Ian,
Your first port of call will be to the local governing body, the council, to find out their individual policy on subdivision.  It's useful to note here that, while all local councils subscribe to their state's planning rules, each one will have different local rules surrounding what you can and cannot subdivide.  These rules will relate to the original zoning of the block, minimum lot sizes allowed, and a  whole host of other things.  For example, in some areas, apparently residential land may actually have a rural or semi- rural zoning, and this would mean that you may not be able to further subdivide at all, while in others you may be able to make this 2 acre block into two x one acre blocks, or even more. If the current zoning allows the subdivision you are after, you can commence, if it does not then you need to seek the council's advice around your chances of having that original zoning amended to allow the subdivision you want. A frank and open discussion with the local council should give you a good idea of what the current zoning is and their attitude to the plans you have for the land. Once you know what you are allowed to do, it's my advice that you contact a local town planner for phase two. A town planner will be able to clearly advise you on whether your ideas for this subdivision will progress smoothly through council, whether you face objections which may be overcome, or whether the entire idea is so far out of what is allowed that you have no hope. It's a worthwhile expense to have this feasibility study done as it could save you not only a lot of money, but time in satisfying the lengthy progress of seeking subdivision approval, only to find that your proposal is rejected. If the planner agrees that you have a hope then they will also oversee the obtaining of the required surveys, site and engineering plans. Remember that the town planner's fees will be on top of the fees that you pay each of these independent contractors. I have found that town planners usually know the rules intimately, and many have previously worked for council, so they are in the best position to develop a proposal with the greatest chances of success. I want to point out that the costs of subdividing are rarely accurately able to be forecast - in other words, whatever you think you will pay for all of this is likely to be so far below what you will actually end up paying that you will be surprised and possibly a little stressed out by the resulting project cost. These potential costs include, but are not limited to: drainage and sewerage, connection of services, access driveways if they are needed, cutting and levelling to prepare the site for building, potential retaining walls, connection of services, drafting fees, application fees, surveys and reports, environmental studies, permit fees, council contributions... the list goes on.  You will need to fund all of these costs yourself, and it's likely that such fees cannot be included in any bank loan you plan to get for the construction. My advice is to prepare a complete list of all possible costs with the guidance of the town planner, and then add at least 20% to the bottom line. You should also include what you believe to be the total costs of building the houses - and don't go by the advertised prices of houses built by the major project home builders.  My recent experience with this saw a property with an advertised price of $290,000, which purportedly included site costs, end up at a final price of $450,000, and this did not include much in the way of upgrades to the tile allowances and basic provisions - in my opinion project home building is a total rort that you only discover after you have signed the contract. If you can get a good understanding around what the homes will cost you to build, and add this to your projections on the subdivision costs, you'll then know if all the headaches of subdividing are actually worth it in the end. Being forewarned is being forearmed, so it's well worth your time to spend a great deal of time figuring all this out before committing to the deal. Have a property question?     <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
</body></html>

mlomas-KC9MUPZ6Ca

Ask Margaret: The key to purchasing land

<html><body>
Coming to the end of June is like closing one chapter of your property investing journey and opening the next. You cannot change whatever happened up until 30 June but July is a good time to start thinking about exactly what you are going to make happen over the next twelve months.   
Thank goodness our financial year falls in the middle of our calendar year, particularly because it's winter and cold and we're not distracted by summer holidays. If our financial year finished in December I definitely could not manage the stress of Christmas and holiday preparations, shopping AND finalising all I needed to on my business and property portfolio. 
But as it's winter, what else do we have to do before 30 June but sit in our offices paying as many expenses as possible and working on our new year's strategy?
My top three tips for getting organised as we enter the new year are:
1.  Tax Planning Strategy. 
A good tax planning strategy is important to have when you're a property investor, so make sure you have a good accountant who is not just going to process  your tax returns,  but also offer some really good strategy advice. You need to start strategising well BEFORE 30 June to give yourself time to make any adjustments to ensure you'll get the best results.  
2.  Investment Action Plan. 
As we move into the new financial year, it's time to plan your investment action. Think about the big picture and what you are trying to achieve. One of my clients has a very clear strategy which is to work hard over the next five years to continue to build his property portfolio so he can 'retire' from his salary job which is also his business and be a full time property developer. 
He's given himself a realistic timeframe which takes into consideration the property he already holds and what developments Property Bloom is managing for him. He was clear when he decided to work with us that he'd be using the experience to learn all he could so that he'd feel confident to then manage his own developments in the future. 
I love helping people help themselves, it gives great satisfaction knowing that you've not only helped someone achieve a financial goal but to educate them so they can continue on their journey. 
Another client has set up a self managed super fund which she plans to expand dramatically with strong yielding property over the next seven years which is when she plans to retire. 
Another younger client is chasing the best depreciation she can get as she's on a high salary and paying a lot of tax, with her Property Bloom development, she'll receive strong depreciation benefits and combined with her rent, will make her completed development cashflow positive and so she will be able to continue to borrow without too much impact to her serviceability. 
3. Schedule in Check points. 
For any plan, you need time during the action period to step back and check your progress. Schedule time into your diary and this will remind you to take stock of your achievements and review your plans and progress. It's best if you can do this with someone who you can share your big picture and review what you've achieved and discuss any adjustments that may be necessary to stay on track. Your financial planner is ideal but if not available, then your partner or a good friend who you can chat to about what you are trying to achieve and the purpose behind it. By simply saying this out loud to another person is a good way of cementing your plans and becoming accountable. 
We all have different things that motivate us. The start of the new financial year is a good time to rev up your plans as before we know it, Christmas and lure of warm, summer holidays will be upon us. 
Jo Chivers is Chief Executive Officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
</body></html>

Development

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Development

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News