Question 1

Who are our clients?

Accepted Answer

At OwnerDeveloper, our clients are individuals, investors, and businesses involved in residential property development. This includes first-time developers, experienced investors, and those seeking guidance on custom builds, renovations, knockdown rebuilds, and large-scale developments. We work with clients who require expertise in project management, risk management, market analysis, feasibility studies, and strategic planning to successfully navigate the property development process. Our services are tailored to those looking to optimise project outcomes, avoid common pitfalls, and make well-informed decisions.

Question 2

How long does the average development take?

Accepted Answer

The timeline for a property development project depends on various factors, including the scale and complexity of the project, any challenges with council policies, and whether the project goes through construction. While we recommend clients allow up to 12 months for a straightforward project, smaller developments may take 12-18 months, medium-scale projects 18-24 months, and larger developments can span 2-3 years or more. At OwnerDeveloper, we focus on efficient project delivery while managing any challenges to ensure timely completion.

Question 3

Do I need a town planner?

Accepted Answer

Whether or not you need a town planner depends on the type and complexity of your development project. In most cases, having a town planner is highly recommended, especially for projects that require zoning, planning approvals, or if you're navigating complex council regulations. A good town planner is an invaluable resource, providing a much clearer understanding of the potential in a development site. We work with a number of planning consultants, depending on what is required, to achieve the best possible outcome for your project.

Question 4

Can you help me with planning?

Accepted Answer

Yes, absolutely! At OwnerDeveloper, we can help with planning for your development project. Whether it’s guiding you through zoning and land use, navigating council policies, or assisting with development applications and approvals, we have the expertise to support you.

We work closely with a network of planning consultants, depending on your project's needs, to ensure we get the best possible outcome. If you're dealing with complex regulations or need assistance in understanding the full potential of your development site, we can definitely help you every step of the way. Just let us know what you need, and we’ll tailor our support to suit your project.

Question 5

Do I need to do a feasibility study?

Accepted Answer

Yes, we believe a feasibility study is imperative before considering any development to fully understand its underlying value. There’s a simple saying, “if it doesn’t work on paper, it won’t work in the real world.” It’s important to do your homework and ensure your project is financially viable from the start. If you need help with your feasibility study, feel free to call or email us, and we can guide you through the process.

Question 6

What client effort is required?

Accepted Answer

Clients are welcome to be as involved or hands-off as they like throughout the development process. Whether you prefer to make key decisions at every stage or simply review major milestones, we tailor our approach to fit your level of involvement. At OwnerDeveloper, we offer as much or as little advice and guidance and involvement as you require, ensuring you’re fully supported while maintaining control of your project in a way that suits you best.

Question 7

Who finances the project?

Accepted Answer

The financing of a property development project typically comes from a combination of sources, depending on the scale and nature of the project:
The Developer: In some cases, the developer may fund the project entirely using their own capital or personal funds, especially for smaller developments.
Bank Loans or Lenders: Most property development projects are financed through loans from banks or other financial institutions. This includes construction loans, development loans, or lines of credit that are secured against the property.
Investors: Developers may also seek investment from private investors or investment firms. This can include equity investment or joint ventures, where investors provide capital in exchange for a share of the profits or ownership.
Partnerships: Developers may enter into partnerships with other property developers, landowners, or financiers to share the costs and profits of the project.
Grants or Government Funding: In certain circumstances, government grants, incentives, or funding programs may be available, particularly for projects with a social or environmental focus.
At OwnerDeveloper, we work with clients to secure the right financing options based on the project’s needs, helping you explore the best sources of capital and ensuring the development stays financially viable throughout the process.

Question 8

Is due diligence necessary?

Accepted Answer

Yes, due diligence is absolutely necessary in property development. It’s a critical step to ensure that the project is financially viable, legally sound, and strategically planned. Conducting due diligence allows you to assess and mitigate risks before committing to a development. One of the first aspects of due diligence is a feasibility study, which helps evaluate the project's potential by considering costs, expected returns, and current market conditions.

In addition, it’s essential to conduct legal and regulatory checks to ensure the property complies with zoning laws, planning regulations, and any other legal requirements. This includes verifying property ownership, checking for land title issues, and understanding the specific council requirements that could impact the development.

Site assessments are also a critical part of due diligence. This involves environmental, structural, and soil testing to identify any potential problems that could affect construction or the long-term viability of the project.

On the financial side, a thorough financial review is essential. This involves understanding the financing options available, securing capital, and calculating the long-term costs of the project, including ongoing expenses and projected profit margins.

Finally, market research is key to understanding demand for your type of development, pricing trends, and local growth projections. By assessing these factors, you can make an informed decision on the potential success of the project.

At OwnerDeveloper, we guide our clients through the due diligence process, ensuring every aspect of the project is thoroughly reviewed and that you’re fully prepared before moving forward. This thorough approach helps to minimise risks and increases the likelihood of a successful development.

Question 9

There are a lot of different opinions around - what do I believe?

Accepted Answer

In property development, it’s common to encounter a range of opinions due to the complexity and variables involved in the industry. When navigating through differing viewpoints, it’s important to focus on what aligns best with your own values, goals, and the specific context of your project.

Here’s what we think is the best approach: 
Trust Experience and Expertise: Look for advice from those with a proven track record and deep understanding of the property development process. Experienced professionals can provide practical insights based on real-world results, rather than just theory.
Stick to Data and Facts: Make decisions based on solid information, such as thorough feasibility studies, market analysis, and legal/regulatory checks. The numbers often speak for themselves and can help cut through opinions driven by emotion or bias.
Consider the Big Picture: Understand the broader context of your development. Factors such as market trends, location, and project scale can all influence the right approach. Consider advice that takes into account your specific project needs.
Assess the Risks: Every decision in property development comes with risks. It’s important to evaluate those risks and ensure that you have strategies in place to manage them. Opinions might vary, but the best approach is one that minimises risks and sets you up for success.
Be Open, but Stay Grounded: While it’s valuable to seek advice from multiple sources, ultimately, you should stay true to your vision and what feels right for your project. Balance listening with your own judgment and what you believe will work best.

At OwnerDeveloper, we focus on giving you grounded, actionable advice backed by data and experience. We believe that by empowering our clients with knowledge and support, they can make well-informed decisions and achieve success.

Question 10

What is a JV?

Accepted Answer

A Joint Venture (JV) is a business arrangement where two or more parties collaborate on a specific project, each contributing resources such as capital, land, or expertise. In a property development context, JVs are commonly used when a landowner seeks to maximise the return on their property. The participants in a JV may have different levels of involvement, which can result in varying shares of the profit or loss.

For example, a landowner may contribute the property, while a developer might provide the funding and project management expertise. The two parties then work together to develop the land, sharing both the risks and rewards. JVs are often used to leverage strengths, access greater capital, and reduce individual risk, while allowing all partners to benefit from the outcome of the project.

At OwnerDeveloper, we assist in structuring and managing JVs to ensure all parties are aligned, and the project progresses smoothly.

Question 11

What is an LDA?

Accepted Answer

An LDA (Land Development Agreement) is a generic term that refers to an agreement between a land-owning entity and a development entity that governs the development of a specific parcel of land. Unlike construction contracts, leases, or contracts of sale, there is no standard template for an LDA, and these agreements are tailored to the specific project and parties involved.

LDAs are often used by landowners who want to increase their return on a property but are not willing to take on the development risk. These agreements typically outline that the developer will handle the development process, while the landowner receives a minimum payout figure, ensuring a certain level of financial return even if the project doesn't generate as much profit as expected.

This structure allows landowners to benefit from the development of their land without taking on the financial and operational risks, while developers can access prime land for development without having to purchase it outright.

At OwnerDeveloper, we assist landowners and developers in negotiating and structuring LDAs to ensure clear terms, a fair distribution of responsibilities, and alignment of goals between both parties.

Frequently asked questions

Who are our clients?

How long does the average development take?

Do I need a town planner?

Can you help me with planning?

Do I need to do a feasibility study?

What client effort is required?

Who finances the project?

Is due diligence necessary?

There are a lot of different opinions around - what do I believe?

What is a JV?

What is an LDA?

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