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Australian Residential Property Development for Investors

Book Description

The all-in-one reference for the new residential real estate investor

Australian Residential Property Development for Investors is the practical, step-by-step guide for beginners and experienced investors in the real estate and construction industries. From site selection to sale, this book walks you through each phase of the property development process to show you how careful planning can considerably enhance returns on your investment. This practical and effective guide features the latest information on development economics, the impact of electronic media, new cost-effective building methods, and a collection of case studies that illustrate these ideas in action. With a focus on practical outcomes, you'll learn how to approach the property from an investor's perspective to minimize risk and maximize returns.

Australians have long had a love affair with residential property. We have one of the highest rates of home ownership in the world, and investing in residential real estate is a popular route to financial security. This book shows you how to make property development feasible within your time and budget constraints, netting you more profit and less headache.

  • Select the site with the most profit potential, and find dependable financing

  • Work more effectively with contractors, councils, consultants, and solicitors

  • Apply standard monitoring and risk management techniques to your investment

  • Cost and market the improved property appropriately to target the right buyers

  • Newcomers are understandably overwhelmed by zoning, financing, construction, marketing, and everything else that goes into property development, frequently resulting in mistakes and missed profit. For the fledgling developer hoping to make the most of a new investment, Australian Residential Property Development for Investors provides all-in-one reference, with proven systems, techniques, and tools.

    Table of Contents

    1. About the author
    2. Acknowledgements
    3. Preface
    4. 1 An overview of property development
      1. The role of a property developer
      2. Types of property developers
      3. Residential versus commercial developments
      4. Types of residential developments
      5. Types of commercial developments
      6. Benefits and risks in property development
      7. Summary
    5. 2 Characteristics of a successful developer
      1. What makes a successful developer
      2. Understanding the market
      3. The importance of research
      4. Build a business network
      5. Reading property market cycles
      6. Opportunities in development
      7. Summary
    6. 3 The development process and participants
      1. The process
      2. The participants
      3. Roles of developer and participants
      4. Summary
    7. 4 Development site selection
      1. Factors that make a good development site
      2. Reviewing established buildings
      3. Analyse the economic characteristics
      4. Analysing the property market trends
      5. Avoiding legal pitfalls
      6. Assembling several properties for development
      7. Summary
      8. Development site checklist
    8. 5 Negotiation and purchasing
      1. Structuring your offer
      2. Position yourself for negotiations
      3. Prepare a pre-purchase feasibility report
      4. Items to consider before making an offer
      5. Tendering for a development site
      6. Securing development rights
      7. Securing an option
      8. Summary
    9. 6 Making the numbers work
      1. Preparing a cost and income spreadsheet
      2. Preparing a prefeasibility analysis
      3. Preparing a monthly cash flow
      4. Sensitivity analysis
      5. Refinement process
      6. Other financial and measurement calculations
      7. Summary
      8. Income and expenditure checklist
    10. 7 Development economics
      1. What is development economics?
      2. The influence of site selection on cost
      3. The influence of design on building cost
      4. The influence of construction methods on cost
      5. The influence of contractors on development cost
      6. The influence of finance on development cost
      7. The influence of authorities on development cost
      8. When plans exceed the budget
      9. Summary
    11. 8 Utilising modern technology
      1. Modern technology in property development
      2. Using the internet for market research
      3. Using the internet for property information
      4. Software for feasibility studies
      5. Communicating with the development team
      6. Using modern technology for marketing
      7. New construction methods in development
      8. Summary
    12. 9 Raising development finance
      1. The lenders
      2. Types of development loans
      3. Loan characteristics
      4. Packaging a loan proposal
      5. How a lender evaluates a development loan
      6. Negotiating loan document details
      7. Using finance brokers
      8. Summary
    13. 10 Raising equity finance
      1. What is equity?
      2. What is sweat equity?
      3. Equity through the landowner
      4. Dealing with an equity partner
      5. Preparing an investor information package
      6. Guide to raising equity
      7. Increasing your equity in a staged process
      8. Summary
    14. 11 The development approval process
      1. The DA process
      2. Step 1: Legal due diligence
      3. Step 2: Site information
      4. Step 3: Market research
      5. Step 4: Creating the development brief
      6. Step 5: Development team selection
      7. Step 6: Development approval budgeting
      8. Step 7: Programming work tasks
      9. Step 8: Master planning and architectural design
      10. Step 9: Feasibility study
      11. Step 10: Preliminary development finance
      12. Step 11: Development approval application
      13. Summary
    15. 12 The construction process
      1. The role and responsibilities of a contractor
      2. Types of contractors
      3. Contractor selection criteria
      4. Understanding building contracts
      5. Tender phase
      6. Construction phase
      7. Summary
    16. 13 Marketing and selling
      1. Understanding the residential market
      2. Marketing yourself as a developer
      3. A developer's approach to marketing
      4. Selling off plan strategy
      5. Summary
    17. 14 Residential land development
      1. Benefits in land development
      2. Risks in land development
      3. Development strategies
      4. Role of the land developer
      5. Land development process
      6. Market demand
      7. Analysing the location
      8. Analysing the market
      9. The development team
      10. Planning considerations
      11. Development cost
      12. Sourcing finance
      13. Authorities and approvals
      14. Marketing and sales
      15. Summary
      16. Case study
    18. 15 Villas and townhouses
      1. Definitions
      2. Benefits and risks
      3. Demand for unit-type living
      4. Development strategies
      5. Location
      6. Site analysis
      7. Market profile
      8. Market analysis
      9. Development team
      10. Design considerations
      11. Cost factors
      12. Finance
      13. Contracts
      14. Marketing
      15. Strata title
      16. Summary
      17. Case study
    19. 16 Apartment developments
      1. Types of apartments
      2. Types of apartment units
      3. Demand for apartment living
      4. Advantages, disadvantages and challenges
      5. Selecting the project type and site
      6. Role of the developer
      7. Buyer profile
      8. Design and planning aspects
      9. Apartment development principles
      10. Summary
      11. Case study
    20. Conclusion
      1. Advantages of investing
      2. Advantages of developing
      3. The decision
    21. Index
    22. Advert
    23. End User License Agreement