Offer Deadline and Development DD

I see that a lot of DD needs to be undertaken before buying a proposed rezoned property if you are looking to develop it in the future.

What I want to know is, how are you able to do all the dd that is involved and be able to put that offer down so fast. By the time I would have done my dd on a potential development block and found it meets my criteria the property would have sold and settled.

Some of you are putting an offer down immediately as they get snapped up so fast and you have to be fast! Are you taking a punt on the property being suitable? Do you get a builder/surveyor/planner out to look at the property and how does that work when you have a deadline to put an offer in? Have you done so many that you can quickly do a feasibility off the top of your head.

I'm assuming maybe you would put a bunch of conditions in the contract so if the building inspections don't pan out the way you hoped then you can back out of the deal or negotiate a lower asking price if for example costly work needed to be undertaken. The seller might not want to accept your offer though with all those conditions, but you would need to have them written into the contract to cover your back. ??


What would you recommend a beginner do? Shall I do some practice runs first so I get quicker? I will need to learn how and what dd needs to be done and get reasonably good at it as I wouldnt want to make too many mistakes as it would cost money. I guess I just have to jump in and that's how I'll learn.

I'm seriously thinking of buying a house that is proposed for rezoning, hold it short term, put in a DA in a few years time to release some equity & then either sell off the vacant land lot at the back and keep the front house, or even sell both, or another option is to get the da approved and then see how much the property is worth with the idea to sell it or release the equity for a new ip. Maybe a Reno on the house. There's a few options there. I'm wanting to create some equity this time around rather than the straight buy wait and hold.

Looking forward to hearing from everyone and please be gentle, I'm on my l plates, well not even those, I'm in my nappies and have a lot to learn.


Thanks!
 
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You have to learn enough about doing the development DD process so that you can basically do the property-specific DD required in one day.

Plenty of stuff like the Rcodes and estimated construction costs can be essentially eyeballed once you know them well enough.
 
Several options

1- put a dd clause in the contract so that it gives you the extra time. Same length as b&p then you can sort it all out. Hot market might cause problems with this technique tho.

2- study your target areas, the r-codes, zoning maps and town planning schemes you should be able to see in 5 mins if its worth going further.

3- ask for formal written planning advice from council to see what rules they have and what they are likely to approve.

4- use a ba that is knowledgable and experienced with this strategy. Preferably one that practices this with their own portfolio.

5- find a mentor that will be willing to hold your hand and help. With the process.

The main point is to be confident on what you know and how to procede

Hope this helps

Cheers
 
Ageed with HD.

Put in a contract subject to DD. Your town planner will quickly be able to tell you how complicated it will be. If need be, a pre-lodgement meeting with the local council can usually be set up in a couple of weeks if its a tricky application.
 
You need to either get a decent DD clause in the contract or know the area and plan inside and out.
 
Hi, thanks for the replies.

Yeah, and while I'm busy learning and researching months will have passed & values will have moved. I think a buyers agent is the way to go here as I really need a lot of hand holding. I can't afford to get this investment wrong. I'll be filling out the loan applications in the next couple of weeks.
 
a lot of n00bs are just taking the agents' word for it.

they then come to someone to help them out and ... well ...

you should know the area you're looking to purchase in well enough that you can spot value the second it's listed.

you know, like Marisa the MTR machine....
 
Hi, thanks for the replies.

Yeah, and while I'm busy learning and researching months will have passed & values will have moved. I think a buyers agent is the way to go here as I really need a lot of hand holding. I can't afford to get this investment wrong. I'll be filling out the loan applications in the next couple of weeks.

Employ Westminster to help with the R-codes??
 
a lot of n00bs are just taking the agents' word for it.

they then come to someone to help them out and ... well ...

you should know the area you're looking to purchase in well enough that you can spot value the second it's listed.

you know, like Marisa the MTR machine....

+1. Just do your months worth of DD beforehand so you can eyeball 90% of the DD required within the first few minutes of researching a property.

Or as also mentioned, pay/pester someone who can do it in 30 seconds to help you out.
 
+1. Just do your months worth of DD beforehand so you can eyeball 90% of the DD required within the first few minutes of researching a property.

Or as also mentioned, pay/pester someone who can do it in 30 seconds to help you out.

Haha just as I read your words 30 seconds Jaime Oliver on tv says those exact same words. A sign from the universe! :D
 
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