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Developing property is becoming more and more popular for property investors. It’s another way to create your own wealth through property, along with excellent tax advantages, and you don’t need to be a millionaire or existing property developer to do it. Of course, you need to know what you’re doing, otherwise you could lose money.
At Property Wizards, our experienced team can guide and manage your Perth based property development project from the initial planning stage, through to completion. As your trusted partner, we are able to arrange the entire project on your behalf, from the development assessment, through to hiring professional designers, builders and contractors to complete your development. In fact, you don’t need to lift a finger – just sit back and watch your wealth being built brick by brick, row by row.
FINDING A PROPERTY FOR YOU TO DEVELOP
If you don’t already have a development site, Property Wizards can find a site that accommodates your strategies, goals and budget. Where possible, our clients aim to hold on to their development properties to build their portfolio, so we apply our knowledge, skill and due diligence to building your wealth in the same professional way that we would if we were buying a long term investment for rental return and capital growth.
Step 1 – Initial Meeting
Property investors need to understand where they are at in terms of property wealth creation, what they want to achieve, and the time frame to make it happen. This is fundamental in terms of developing a strategy that suits their needs.
If you’re new to property investing or developing, we’ll explain some of the key fundamental strategies available to you using simple diagrams and easy to understand language.
If you’re an experienced property developer or investor, we review your existing investment portfolio, and assess whether an enhanced strategy could be more effective in achieving your property goals.
Step 2 – Determining your Development Wealth Strategy
Now that we understand where you are and what you want to achieve with your property development, we help you formulate a realistic strategy to help you achieve your goals. We look at the available development strategies and which of these suit your time horizon, your budget and your objectives.
We look at buying to develop immediately and the different ways to do this, compared with buying to develop later and the best ways to do this.
We also consider strategies where you can stretch your budget by staging the development, enabling you to become a developer with a smaller budget than you may have thought possible.
Step 3 – Property Development Search
Once you give us the go ahead, we think about what types of property and which suburbs are the best for your goals. We also consider how government plans and projections of such things as population, rezoning, infrastructure, land releases and potential oversupply or shortages will affect the properties.
We undertake a comprehensive search of properties available for sale including off-market properties from our contacts in the industry. Very quickly, we refine our search down from a total pool, often in excess of 15,000 properties, to just a handful of outstanding properties with excellent development potential based on our tough selection criteria.
We investigate a ‘short list’ of properties and prioritise the best opportunities for development. We also explore further using government authorities, planning policies, our paid subscription data, our contacts in the market and our detailed experience in selecting Perth based development sites.
Step 4 – Property Inspection.
Once we have identified the best properties for your strategy, we carry out inspections on your behalf, looking for ‘potential problems’ or expenses to factor in when assessing the merits of one development site over the next. This saves you time and money as we guide you through the selection process.
Step 5 – Due Diligence
As property investment experts, we can evaluate and assess the development site in greater detail once you are ready to proceed. We ensure the Contract of Sale includes a number of conditions that work in your favour, not the seller’s – this gives you peace of mind that the property can be developed the way we envisage.
Step 6 – Accurate Pricing
We obtain up to date information about the development site as well as comparable sales data, as this allows us to determine its true worth. In doing do, we make sure that you never pay too much for a property development site in Perth.
Step 7 – Acquisition Strategy
Once we’re convinced the property development site suits your strategy, and it’s within your budget to start with, we will then negotiate with the owner or agent on your behalf. By drawing on our extensive experienced, and utilising all the legal tricks of the trade, we can make sure you purchase the development site for the lowest price possible.
At this stage, after the offer is accepted, we arrange a Survey Report to confirm that the property can be subdivided as envisaged. You can also order a Feasibility/Development Report, to help determine what the optimum development will be from a range of options including villas, townhouses, apartments, retaining the home, or demolishing the site completely, and starting afresh.
DEVELOPING YOUR EXISTING PROPERTY
If you have an existing property or own a development site, then we will work with you to maximise the wealth building potential of the site. Often we’ll discover that the original idea of how to develop the site before our assessment is not necessarily the best one, which is why our experience and knowledge can make all the difference.
Step 1 – Development Assessment
We assess the zoning, block size and site layout and advise you on the development potential of the property, using our experience and knowledge of development sites and the local market.
If you wish to proceed we do a finance assessment and you engage us to consult on your development. We may even set you up directly with our building consultant to be your development specialist.
Step 2 – Survey and Design
We have your site surveyed by a surveyor and consult with the designers to achieve the best possible outcome with building type, style and design to best suit the site, the local market and your development strategy. We then have concept designs drawn up tailor-made for your site.
You receive a cost estimate and armed with concept and cost you make your final decision to go ahead with the project. This triggers the development of detailed designs that enable builders to quote.
Suitable builders are selected and there are strong and hard negotiations to ensure you get the lowest price possible and a high standard of quality. You’ll know exactly what the homes are going to cost you, to ensure they fit within your finance capacity and cash flow. Our consultants’ buying power and experience ensures you get the benefit of better prices than a person with a single project.
Step 3 – Development Application
Depending on the method of development you have chosen, your development specialist then submits your development or subdivision applications.
Once your applications have been submitted, your development specialist liaises with Council and Planning Authorities on your behalf. This often involves meetings and negotiations until approval is gained and here is where contacts, negotiation skills and good working relationships with the authorities are instrumental in achieving the best results for you.
Step 4 – Subdivision
Again depending on your development method, we may subdivide first or we may commence building at the same time.
If subdividing first your subdivision specialist will arrange for the subdivision – involving approvals from authorities, demolition, clearing land and installing services such as power and sewerage. This is followed by the final survey and applications for titles. Your subdivision specialist deals with any hurdles along the way, whether they relate to the site or to extra requirements by the authorities.
Step 5 – Site Works and Construction
Once the building contract with your selected builder is signed, your finance approved and building permit received, your builder manages the construction and completion of your new dwelling. This includes ensuring all work is completed as stated and planned, and solving any issues that may arise. Your development specialist acts as a trouble-shooter and problem solver when necessary.
Depending on your project package your independent building inspector inspects the construction at all the most important stages to ensure everything is up to the high standards required, for your peace of mind.
Step 6 – Finishing
The builder will include finishing your painting, floor coverings, landscaping, window treatments and everything to complete your project.
Step 7 – Completion
The handover of the finished project is an exciting moment. It’s the completion of a journey that results in our clients having a new development property to fast-track the creation of their wealth, their rental income and the growing of a substantial property portfolio.
We love to help both experienced and first time property developers in Perth. To get started, simply fill out the obligation-free online enquiry form at the link below – we’ll then have one of our key staff contact you shortly. If you would like to contact us directly, please call us now on (08) 9381 7450.