What are your developer friends and aquaintances doing now?

[Sheryn]

Over the last couple of years I have seen friends and aquaintances change what develpment they are doing of course they are looking at return but not always.


S
Started a co-op business moved on to land subdivision at least 2 the whole box and dice put in roads utilities and selling off land for houses to be built on, brought blocks of land in different towns and built & sold new duplexes.


Brought a fish & chip shop and worked in it, then a second one, sold the shops worked as an employee in a grocery shop mainly as his daughter worked there on the checkouts after school.

He said you can only do nothing for so long...and he is sick of butting heads with the local councils and have holding costs blow out.

Aquired his helicopter licence and his daughter did so as well.

Now this year we find out he started a grocery franchise after the previous owners struggled when the new IGA opened in town. Haven't been able to catch up with him yet as he is at work most days.

Obviously he does not need to work.


J
Built mainly duplexes & held, helped his kids with property development and business. One kid is 28 with 3 X businesses related to autmotive industry (2businesses he started from scratch one he brought but had to learn a different trade in case employee was sick) son's partner also has her own business with 3rd child on the way.

Friend is over council BS and but he is slowly selling properties and rebuilding in SMSF and he will get a project home builder so he only has to deal with one person.



SS
Always worked additional job besides running their farm and brought IP properties as he could afford. Last two developments over 5 years was to buy 2 properties side by side in capital city and demolish or relocate house then build townhouses.

He is over dealing with councils and builders.

Most of these guys (and their wives) have the money to self finance now but find they are sick of council red tape and time delays.


BIL
Hired different professionals to design and apply for DA and build an industrial shed ( he even had an ex town planner) what a saga and the drama has taken 5 years and still not fully approved the council don't like his landscaping.


Me
We are having this year off I personally like to build new things but we are looking for a commercial property with good returns to buy, next year 2013 we will get serious if we can't find one thsi year.

One thing all friends have evolved, they have had a go at doing things.


Wouldn't it be good if you could have meeting with council officer and say I would like to build and industrial shed and during the meeting they rough out for you a diagram after listening to you OR explain why something will not work.

Timewise wouldn't it be good if you then put in your DA in and all relevant parties meet to discuss approval or changes needed to diagrams at the one time after all you pay for council time in your DA fees but their process is not streamlined!



Rockstar
What are your developer friends up to?

 

[cu@thetop]

Wouldn't it be good if you could have meeting with council officer and say I would like to build and industrial shed and during the meeting they rough out for you a diagram after listening to you OR explain why something will not work.

Timewise wouldn't it be good if you then put in your DA in and all relevant parties meet to discuss approval or changes needed to diagrams at the one time after all you pay for council time in your DA fees but their process is not streamlined!

Some councils do pre lodgement meetings exactly on this point. One client goes to council informally during the DD period to see what they will allow before committing to the deal. Generally he already knows what the Council will or wont allow before he even starts looking at a deal. His biggest gripe is Council's continuing requirement for development levies etc that erode profitability. He has a few things going at the one time so Council holdups are dealt with as and when they arise but he is not twiddling his thumbs waiting. He buys land, self builds commercial (retail/office) (has his own project manager), gets tenants and usually these are cash flow positive with a not less then 14% return P.A.

This year he is not doing anything once he finishes his current commercial build.

Another developer in residential renos has been reducing debt for the last 3 years and is now looking to start up again.

 

[Aaron_C]

If you have a good town planner/architect I don't see how the Council can stuff you up for so long. Even 60 storey sky scrapers in Victoria have to approved/rejected within 60 days, and if not then you can take the Council to the tribunal to force them to make a decision.

 

[oc1]

If you have a good town planner/architect I don't see how the Council can stuff you up for so long. Even 60 storey sky scrapers in Victoria have to approved/rejected within 60 days, and if not then you can take the Council to the tribunal to force them to make a decision.

Exactly. You need to make sure the architect you have has great knowledge and a town planner to bounce ideas who knows their stuff.
It's the hearing date wait at VCAT that frustrates me. 6-8 months!

 

[Sheryn]

Even 60 storey sky scrapers in Victoria have to approved/rejected within 60 days, and if not then you can take the Council to the tribunal to force them to make a decision.

Regularly takes 5 months to get a basic duplex council approved including DA & CC. Been happening for years and continues to happen.

 

[oc1]

Regularly takes 5 months to get a basic duplex council approved including DA & CC. Been happening for years and continues to happen.

That's quite normal. The shortest time frame I have had a planning permit issued is 6 weeks. Normally, it may take a month to look at the file, add another month for further information request, a couple more weeks for the file to be examined, 14 days advertising and at least another month or two to issue permit while other departments within council and other responsible authorities give consent (eg water authority) and you can be waiting 4-6 months.
The 60 day rule pauses whenever council requests further info. Just because the application is in doesn't mean you will have a response within 60 days.

While I agree it takes too long and is a battle to get permits, it is this very fact that makes developments more financially rewarding. So you really can't have it both ways.

 

[Sheryn]

Back home and have spent the last month looking for a project to do with no luck.


Update on a developer friend...
J
Is currently building an IP and a few months ago he had a sleep in only to be woken by the police ringing to say someone had committed suicide at his building site.

Spoke to a land developer and now it costs 100K in government fees, charges etc to develop a block of land! Let alone the time delays which cost additional money.

Talked to a project home builder who deals with 26 or 28 councils and their is only 1 council that is proactive and easy to work with. They use private certifies for all other councils.