So, I’ve Just Bought A Development Site. What’s The Next Steps?

We’ve done our due diligence – we are confident the area we are investing has lots of owner occupiers adding value to their homes. We’ve moved quickly to contract that has very little conditions i.e. removing finance and building and pest. We are fast to contract and we don’t try and pinch it – we want the opportunity, so we have to pay fair market. We know the vagaries of the block and haver priced that in to cost of construction. We secure the opportunity so what happens now. 

Well we look to have a tenancy for at least 6- 12 months, so as to try and maintain income whilst we obtain a Building approval to demolish and a building approval to build.

Concepts

We look to previous sales that have achieved good results and we try an copy them so we limit our risk. Its not the time to be outrageous or niche we need as many buyers or tenants interested as possible, so stick to what works. Your told not to copy in school but in real life success leaves clues, so copy.

Consultants

During the tenancy we will need to get detailed survey plans, engineering advice, soil tests energy efficiency appraisal and a set of working drawings.

Application for Building approval. 

This should be straight forward as we are not adding any dwellings but we do need to keep with zoning so that informs your design ie traditional or contemporary. The approval will come with a private certifiers sign off.

Demolition. 

Once we have the approval we can begin. We like to include demolition in the building contract this in fact makes it a borrowable event and hence better for cashflow.

Every development is different but one thing for sure is 80% of the success of the project comes before you turn soil. Buying right, building the right product for the market and then executing the plan. 

By Shannon Davis - Building your wealth through property