Property Development Advice

glutamic on 29/05/2017 - 18:16

Hello everyone hoping if someone can give me advice

I bought an investment property for development of 4 townhouses
I recently got a quote for plans and permits and development management and wanted to know if fair/accurate.

Documentation for Town planning permit AND building permit: 26.5k including architectural plans, soil report, drainage design etc

Property Development fee: 23.5k; Including liaison with specialist for renders, obtaining quotes from builders, essentially everything to construct 4 townhouses.
Now I haven't done this before and unsure of the price, seems a tad excessive, thoughts?

Financial

Comments

  • PVA on 29/05/2017 - 18:21
    +2

    also add things like comms - NBN or Telstra quotes plus Telstra HFc cable quotes for Foxtel/Broadband - builders seem to forget this.

  • Rizzler on 29/05/2017 - 19:03
    +4

    if you don't know this, how did you work out if the land purchase was a good deal?…….

    • glutamic on 29/05/2017 - 19:17

      I researched the area and asked a few people familiar in the area.

      • DaneD on 29/05/2017 - 19:29

        Hey man it is really dependant on the local council so if you can provide an area that will assist. This also determines the time to apply for a demolition approval (DA) 10 weeks in Brisbane for people to object etc.

        So what I'm saying is the rules, restrictions, prices and timing differ from city council to city council.

        Obviously one of the best ways to suss out a quote is get multiple quotes. But I would strongly suggest speaking with the local council finding out all of the requirements (if you don't know already).

        They will also know all of the app fees etc. Lastly, if you know someone high enough in the council generally you can get building relaxations (build right to the boundary line) or you could get approvals a little faster. I should state I only know this by 3rd party evidence when I note lots of the developers in Brisbane on residential projects seem to get lots of relaxations and faster building approvals.

      • Rizzler on 29/05/2017 - 22:20
        +1

        Good luck!

        The only developers that make money on small developments like this are builder/developers…..unless you bought the land under market value….

        I'm a DM on large scale residential - if you want to make any money on your development I would be "managing" everything yourself….and engaging consultants when essential.

  • Hiroko on 29/05/2017 - 19:30

    get in touch with a building certifier.
    they will guide you through the whole process
    for a small fee, usually about 2-4k depending on the project.

  • Thatbargainhunter on 29/05/2017 - 21:06
    +1

    Where are you located?
    What are you building? 3 bedders? What spec?

    Are you subject to Finance?

    When you say building permit, I am assuming you mean Development Approval or a Material Change of Use. Building permit, usually mens Building Approval or Construction Certificate, which under most standard forms of contracts for townhouses - is the builders responsibility.

    Think about what contract you are signing. I highly recommend that you do not use a stage payment.Any development manager who advocates this, should not be hired….full stop.

    My advice is to not spend it on a development manager and use that money instead get an estimate from a quantity surveyor instead. Than look at your quotes and decide. Most development managers are the most clueless people in this industry.

    • glutamic on 30/05/2017 - 13:31

      Melbourne. 4 townhouses ( 3*3 bedrooms and 1 2 bedrooms)

  • samprofs on 30/05/2017 - 11:13

    As a comparison I paid 14k for a 3 townhouse development (17 squares each) in Melbourne's south east. Liaised with builder myself and the project was completed very successfully and at a great price (about 20% cheaper than most quotes after a lot of negotiating and research). This 14k fee I paid the architect included town planning, working drawings, soil, energy rating..etc I would say your pricing is slightly on the high side.

    Hope that helps.

    Mod: Comment edited. Removed selling of services.

    • glutamic on 30/05/2017 - 13:32

      Can you pm who you went with?

      • samprofs on 30/05/2017 - 13:35

        Hi, Your PM is not available.

        • glutamic on 30/05/2017 - 13:39

          sorry can you try again

        • stewartedin on 30/05/2017 - 14:04

          Hi Samprofs any chance you could PM the same info' as I am looking at something similar at the moment also in Melbourne - thanks in advance

        • steff on 30/05/2017 - 18:41

          Hi Samprofs, I'm currently in a similar situation and looking for a reliable builder as well. are you happy to PM me the info please? ta

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