1) Pre-Purchase & Site Assessment
Before you even start looking for a block consider:
- Do you have a cost and profit calculator ready? Make sure you know your figures before you buy.
- Understand which entity you will purchase the land for your unit building project. Will it be in your own name, in a company, a trust or maybe you’ll be involved in a joint venture? It is best to seek advice from an accountant and/or a lawyer for this.
- You should also have finance pre-approval in place so that you know your outlay limit.
- You should look for a team of experts who can advise you as to the project’s viability. For more information on this click here.
A fantastic book to learn more about setting up your development as well as MANY other legal aspects of property development is ‘Smart Questions Property Investors Must Ask Their Solictor’. It is written by a Queensland lawyer so it is very relevant to Queensland developers. You can find the book here: http://smartquestions.com.au/
Now getting the right site…
If you’re working with the Homes Homes team, we’ll help you assess the site you’re interested in before you even decide to purchase and begin the unit building process. Our builder can come out to the site with you and discuss any important issues such as existing services and how they’ll need to be altered or added, easements, demolition or levelling requirements, earthwork and soil issues, if any. We can also help you look into the zoning of the block and covenants in the estate or plan of development in the area.The aspect, elevation and accessibility will also impact on your subdivision and development plans and our builder can make you aware of these.
This first site assessment will answer a lot of questions, and give you an idea of the kind of costs that will be involved in construction. If you decide after the site assessment that you don’t want to proceed, you owe us nothing. We offer our professional advice to property developers cost and obligation free because we want to make sure our clients are informed and successful in their property endeavours. After all, the success of our developer clients means a continued working relationship for projects long into the future.
Once it is determined that the site is fit for a development (zoning etc) then we are able to give you an estimated price to build based on your requirements. If this fits the budget then we can move to the fun stage of design!
It is only at this point that we ask for a preliminary deposit. This cost will depend on the size and complexity of your project. This contract does not bind you to building with us. It is simply and agreement for us to go ahead with working drawings, and any other related checks we need to do to be able to give you an accurate and final building cost (for more information on this check out our FAQs by clicking here).
We will also assist you in tailoring the design to suit the market and ensure easy saleability. As an investor, it is important to be pragmatic about design decisions and make choices based on appeal to the general public also based on profitability (no point spending a fortune on the project if you can’t sell it for a profit). While some elements may be worth investing in (stone benchtops, air conditioning) others are not likely to gain you more money by including.
3) Contract & Construction
Once full working drawings are completed, and you are happy with our price, we are ready to undertake engineering and contract preparation. The building contract used by Highlife Homes is prepared by the Queensland Master Builders Association and is accepted by banking corporations and lending bodies.
Once you have finance approval (if applicable) and the 5% deposit for construction has been paid, we take care of construction so you can focus on the sales part of your project.
This is when you sign the final contract and we prepare to turn your development into a reality. If you are getting finance for the construction you will need this signed contract to get final finance approval from your lender. Take your building contract to your lender and they will then get their paperwork underway. This can sometimes be a lengthy process, ring them regularly to ensure progress is being made.
4) Preparing for Sale
During construction you can prepare for the sale of your developments. Here are some of the things that may be on your list:
- Get internal and external render images done for marketing
- Get simple concept plans drawn up for marketing
- Get realestate.com.au listing up online with imagery and concept plans
- Hire a body corporate manager
- Get solicitor to draw up an off-the-plan contract (you will need a draft survey plan and body corporate information for this)
- Get flyers or site boards printed for advertising
5) Construction Handover & Title Registration
Once construction of your unit building is finished we will handover the properties to you complete with home maintenance manuals( including warranties) for each and every dwelling. That way you have a package perfectly ready to give to the new home owners. For more information on what is included in this package, click here.
If you have subdivided the land you will need to get the title registered at the end of construction. This is the last process before settlement of your properties and handover to the new owners. It is best to begin preparing for this a couple of weeks out so that you know you have everything ready and this process can sometimes get delayed in council.