Frequently Asked Questions
Who are the clients?
You own land with potential for developments.
You have a Development site under an Option agreement.
You have “lazy”/untapped Equity or capital looking for reliable investment.
You have a site and a DA but no time to manage the Development process.
How long does it take?
It depends on a number of different factors, such as scale and complexity of the project, if we are challenging Council policies or are we taking it through construction or not etc. We suggest that our clients allow up to 12 months for a standard subdivision, however we generally complete projects ahead of schedule.
Do I need a town planner?
A good town planner is an invaluable resource. They can provide a much clearer understanding of the potential in a development site. We have a number of planning consultants we work with, depending on what is required, to achieve the best possible outcome.
Can you help me with planning?
Yes. It’s always better to understand where your land sits from a planning perspective. We have a number of planning consultants we work with, depending on what is required, to achieve the best possible outcome.
Do I need to do a feasibility study?
Yes. We believe this is imperative prior to consider any development in order to gain an understanding of its underlying value. There’s a simple saying “if it doesn’t work on paper, it won’t work in the real world.” Do your homework, and if you need help, call or email us.
What are the risks?
Put simply, virtually none to our clients. If we commit to a project with you, then it is our time and money at risk. For example, if we don’t get approval from the Council, then you don’t owe us anything.
What are the costs/fees?
There are no upfront fees. Once we have assessed your property [obligation free] we will discuss the specific return we can offer you. We recoup our costs and fees at the end of the project.
How will it affect the house value?
Market evidence suggests that often homes are worth no less on the smaller block of land than they were on the larger size. So at the end of the project, the asset value can generally be maintained.
What client effort is required?
Not much! A few signatures along the way is all that's needed. We take care of everything else, such as gaining council approval and carrying out the council conditions. We even take care of the sale of the land.
Who finances the project?
We do. This is one of the many benefits of working with us, so everyone has the opportunity to develop. We put our money where our mouth is and fund all our projects,
Is due diligence necessary?
Due diligence is broadly defined as the care which a reasonable person should take prior to entering an agreement or a transaction with another party. We stress great importance on due diligence. While many prospective buyers conduct an initial due diligence on a property prior to entering in to an agreement, many larger, more complicated projects are sold subject to a due diligence period. This can vary depending on the intricacies of the proposed sale.
There are a lot of different opinions around - what do I believe?
Trust in your research. Make sure you are working with someone who is qualified and experienced. Ensure that they have transacted similar properties and can produce suitably qualified and reputable industry contacts. If you’d like to book an appointment with us, call one of our accredited team members today.
What is my land worth?
There are quite a number of factors that affect the price of your property. These would include size, location, aspect, zoning, construction access, services, planning overlays, inundation, contamination, competition, financial and current market conditions just to mention a few. It’s not a simple process – and that’s why we’re here.
When should I sell my land?
That will be up to you and what you’re trying to achieve, however, from our experience the earlier we can meet and discuss the various options, the better you’ll be prepared – whether that be now or sometime down the track.
What is a JV?
JV stands for Joint Venture. A joint venture is an arrangement between two or more people or companies who work together on a particular project or purpose. Each participant may have different shares in the joint venture, resulting in varying levels of profit or loss. JVs are often contemplated when a landowner is looking to increase their return on a property.
What is an LDA?
LDA stands for Land Development Agreement. An LDA is regarded as a generic term used to describe an agreement between a land owning entity and a development entity that governs the development of a parcel of land. Unlike construction contracts, leases and contracts of sale, there are no standard land development agreements. However, these are sometimes used by landowners seeking to increase return, but have no appetite for development risk as most LDAs contain a minimum payout figure by the developer.
What are the usual terms for buying a development site?
Unfortunately, there are no standard terms when it comes to development sites. It depends on a number of different factors, which we would be happy to elaborate on if you’d like to give us a call. While there are some industry standards that are applied to certain categories and zonings, ultimately it will depend on the requirements and needs of both buyer and seller.