Who builds and sells off the plan

[Dazz]

if you get one builder to look at another builders work you'll hear nothing but complaints.

That's been my experience as well Mark.

....but then, one could just as easily slip in "Doctor / mechanic / sparky / engineer / marketer / especially chefs and especially fashion gurus / etc etc etc......."


It's all to do with trying to establish credibility in the eyes of the layperson....for they wouldn't have a clue what the differences are.

 

[The Y-man]

Damn, and I always thought it was "District Attorney"....

Cheers,

The Y-man

 

[MTR]

I know builders who won't touch DA approved sites unless it's from another builder who is selling due to finance.
Reason being is that they have yet to come across plans which they are satisfied with.
On the other hand, someone obviously buys them.

Well I will know shortly whether I have a real winner, architect tells me that builders will be jumping for this project we are targeting the lower end of market where the margins are attractive for builder.

Cheers, MTR

 

[morty]

Good on you MTR! I'll been keen to hear what the outcome is, keep us posted!!

Morty

 

[Joe C]

Finding land, purchasing it and getting a DA will take years.

Mark

Wow, didn't realize that was the case.

So essentially, you buy a few properties side-by-side (or one big block). Rent it out and then proceed to lodge a DA?

Whats the end-to-end cost on a typical DA? 10-20k?

 

[Mark C]

Whats the end-to-end cost on a typical DA? 10-20k?

What is a typical DA?

If it's a 4 unit subdivision on a single block already zoned for 4 units then the costs could be around $5 - $20K depending on design, council and surveying costs.

I used a builder to do one for me at a cost of $5K with their design and their people doing the paper work.

Or if it's a large block zoned for 100 units it could costs anywhere from $200K - $600K +.

Costs could include but not limited too:

Architect
Traffic Eng
Acoustic Eng
Ecological Reports
Fauna trapping
Flora mapping
Structure Plan
EPA Approvals
EPBC Approvals
Storm Water Management Plan
Ground Water Testing
Contamination reports
Lab Testing
Advertising
Legal advice
Townplanning Advice
Application Fees ($30K+)
Landscape Eng
Civil Eng
Interior designer
Mains Road Approvals
Prelodgement meeting
Endless council requests for changes

Just a couple that come to mind, you might notice I included application fees as they can be enormous and often over looked. Usually based on m2 of proposed internal space.

Also not commonly known but once you get approval you will have to fork out Contribution fees. In BCC for a unit that will set you back about $43K. See attached fees from a DA issued in May from BCC this year. This amount is paid on each new dwelling you are proposing to build prior to building it.

Mark

 

[Joe C]

Thanks for sharing your insight, didn't realize it was so expensive.

In my mind, a typical DA would be for 4-8 units.

So essentially you get everything ready up until the build phase, and then sell it to someone else to build and sell themselves?

 

[Snort]

The DA is extremely profitable without the headaches.

Hehe... I'd still keep the panadol handy

 

[MTR]

Hehe... I'd still keep the panadol handy

LOL, it won't be panadol.... I'll be using a rubber mallet on the architect, he never returns calls, in slow mode at the moment.

Cheers, MTR

 

[Mark C]

LOL, it won't be panadol.... I'll be using a rubber mallet on the architect, he never returns calls, in slow mode at the moment.

Cheers, MTR

MTR,

One of my projects the Town Planner never answered his phone and was continually late on deadlines.

This was a $35m development, 12 months into the project I sacked the Town Planner. A point not lost on the remaining consultants.

Mark

 

[Piston Broke]

Well done m8, hope it goes well for you.

LOL, it won't be panadol.... I'll be using a rubber mallet on the architect, he never returns calls, in slow mode at the moment.
Cheers, MTR

lol yep, they seem so busy even when nothing's happening.

 

[ryan_mel]

Well done m8, hope it goes well for you.



lol yep, they seem so busy even when nothing's happening.

And this is just the beginning, when you have objections from your neighbors, when your currently proposed plan need big adjustment, when your modified plan needs further adjustment ...... then you might see how unwilling they are.....

Wondering in the architecture design industry, why the architects can always get their full amount of payment once they formally lodged the final application instead of after the day developers get their DA approved?

I was trying to negotiate with a few architects to pay the last repayment only when the permit is secured, but it seems not work in this industry, not like building a house.... Damn!!!!

 

[MTR]

Some good news today architect presented preliminary proposal for 8 unit site to Council and seems they are in favour of this type of development.

Onwards and upwards I hope.

Cheers, MTR

 

[attrill]

If it was me I would do the DA, take the money and run and look to do exactly the same again on a bigger site. The reward divided by the hours you will put in would have to be better than if you did the whole development.

Think of it as how much you would make per hour of your time that you would have to put in.

Hope this helps.

 

[MTR]

Hi Attrill

That's the plan, sell it once DA is approved.

Cheers, MTR

 

[MTR]

Hi all
just wanted to give an update, also have a couple of questions for those who have been down this road before.

Received my quote from architect - $20,700 upto town planning stage.
Details of costings have been itemised.

One interesting item was cost of $1,200 for landscape architect. I'm assuming this would be a couple of basic drawings of plants/shrubbs on the plans?? I will need to clarify if this is even necessary.

There are also a couple of other items which state P.O.A. (price on application), don't like that one, I think he needs to provide estimates.

Do you request copies of other consultant fees?

Thanks

Cheers, MTR

 

[Mark C]

MTR,

Most councils will require you submit a landscape plan, this includes a drawing with number and locations of plants.

I paid $6K for a 80 lot site, ensure you get it done electronically there are still some cowboys drawing them by hand. If you have a layout change you have to get the whole thing re-drawn. This plan has other uses than just an approval, it may be used to sell off plan as it will be the best looking drawing of your development that is until you get marketing ones done.

You may be able to submit a DA without one, maybe the council wont ask for it or maybe they will. On the Gold Coast a submission would not be classed as "a properly made submission" without it.

I don't accept POA as an estimate, all costs should be fixed regardless of how much your consultant complains about fixing it. You don't need more risk.

I would expect for every consultant you will have 2-3 fee proposals, this is what you are paying the architect for.

Mark

 

[MTR]

Hi Mark
thanks very helpful information. Plan to contact architect this week for further clarification.

Cheers, MTR