Things that can go wrong on a property development

Telejazzer

Telejazzer

Thought I'd start a thread on the things that can go wrong on a property development.

Any contribution would be great.

I'll start:

Lack of finance
Unforeseen events like hitting rocks
Long delays
......
 
here's a couple:

- builder says 12 months but is verging on broke (like most builders) and delays the process, spends 3 years building and the bank loses patience and folds you up

- credit crisis... bank refuses to pay a progress claim for fictional reason, sends you under

- bank approves devy then after you settle on the land they get cold feet and call the loan in

- market moves against you after commit to the project

- builder goes broke and you need to find a new builder to take over

- change in planning approvals by one of a myriad of govt depts. means you can no longer develop your site e.g. fire dept, health dept, council, water corp, power co

- increase in building requirements e.g. in WA they have upped the fire requirements for houses and it adds about $10k to a build
 
MTR said:
Ausprop
Is that all.... was it the year 2007, take a "bex" and relax its all over now :p
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doubt I will ever forget the way the banks acted during those crazy times. there is a lot of litigation ongoing to this day as to damages incurred from their behaviour, not to mention the guys I knew that the banks just mopped up. pretty hard to sue a bank and prove your right when you're broke.

but apart from that, the last few points are ongoing issues, just a few of the things that can go wrong, could fill a book
 
Tano said:
Hi, Ausprop. Where can i find more info regarding these changes?
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couldn't tell you actually... a builder was telling me as the place I designed slipped thru just before the change and I was quite lucky. I'm not even sure whose rule it is. Aaron Sice may know what it's all about
 
Waiting for a hearing at VTAC and waiting and waiting and waiting....... while holding costs keeping chewing into your profit margin.

If that is not bad enough, you lose your hearing and are back to square one.

Even worse, you end up in endless loop between council and VTAC.

Gives me nightmares just thinking about it :eek:
 
The OC declined to fix asbestos on common property, which I identified within two days of taking possession. The OC also declined to do anything about about the roof supports which had become a meal for termites or the like. We fixed the roof. The builder walked away, job not finished. Six figure compensation sought. Got some. Our lawyers won.
 
1. You find a road 600mm underneath your block :eek:

200 sqm of bitumen had to be excavated and taken out of the 1200sqm block.

This happened to me 2 weeks ago.

2. Your demolition crew put a hole in the side fence which was previously good enough to keep. (neighbour pissed!)
 
westminster said:
1. You find a road 600mm underneath your block :eek:

200 sqm of bitumen had to be excavated and taken out of the 1200sqm block.

This happened to me 2 weeks ago.

2. Your demolition crew put a hole in the side fence which was previously good enough to keep. (neighbour pissed!)
Click to expand...

And you think you've had problems... :D

5years of delay due mostly to my own errors. I would love to blame someone else, but that's too easy :cool:

I however, now have brick walls :D
 
Blacky said:
And you think you've had problems... :D

5years of delay due mostly to my own errors. I would love to blame someone else, but that's too easy :cool:

I however, now have brick walls :D
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Mine are minor I know.

I am potentially in your situation at the moment with owning a block and no construction finance in place for Highgate.
 
Blacky said:
But but but .... I thought the fat lady sung? I thought finance was approved?
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Just for the block. I'm doing a Blacky. I won't be getting construction finance until DA is approved and pricing is settled on the final design.

So, children, you can reduce risk of finance complications if you can get a due diligence clause or a long finance clause or long settlement so that you can do a combined loan for land and construction.

Or you you run the gauntlet of buying land and then going for a construction loan and bank say NO :eek: You are then up **** creek.
 
a guy was doing a massive warehouse development, laid out a beautiful concrete pad, then realised he forgot the reo. was all too much for him so put a bullet thru his head, pretty sad outcome
 
Ausprop said:
a guy was doing a massive warehouse development, laid out a beautiful concrete pad, then realised he forgot the reo. was all too much for him so put a bullet thru his head, pretty sad outcome
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:eek:

Wow - talk about "whats the worst that could happen". I think this would have to be close....

Though I also dont understand how you could 'forget' the reo... I guess if you are already stressed to the max...
 
Blacky said:
:eek:

Wow - talk about "whats the worst that could happen". I think this would have to be close....

Though I also dont understand how you could 'forget' the reo... I guess if you are already stressed to the max...
Click to expand...

yeh pretty sure it was the reo... was about 10 years ago, it was reo or something equally important...prelay for plumbing?? either way the upshot was the concrete had to come up
 
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