Adelaide West Torrens townhouse development

Discussion in 'Development' started by Trishade, 14th Apr, 2020.

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  1. Trishade

    Trishade New Member

    Joined:
    14th Apr, 2020
    Posts:
    1
    Location:
    Adelaide
    Hi all,

    Firstly, I'm all new to this - so all advice & guidance will be much appreciated.

    I and the partners have a block of land in Urban zone of West Torrens council - and we want to develop 7-8 townhouses (3 storey each) on it, the type of new developments you can see along Anzac highway.

    Questions:
    - Will it be better to [option A] build the whole 8 townhouses then sell off the plan?
    Or [option B] subdivide the land and engage with builder(s) to pack up house&land package then sell each one (also off the plan)?
    - What will be the pros & cons of the options ? Ie. Which will have more profitable to us / or easier to achieve?
    - Will we need surveyor or townplanner or builder to prepare & draft the development application for us? Or all of them will need to involved and work altogether - in what order?

    Thank you so much for your guidance !
     
  2. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    4,017
    Location:
    Perth, WA
    Alarm bells!

    I hope between you and your partners, you have some skills and experience in developing. This sort of project seems like a good way to lose money unless you really, really, know what you're doing.

    Having partners just adds extra complications and risks too.
     
    Brady likes this.
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,302
    Location:
    Sydney
    The first step (assuming you need finance and are not doing this project via a full cash injection) is to figure out finance and what the lender will lend in each scenario.

    There is an incredible large difference in funding between option A and option B - its going to come down to residential lending versus commercial lending and this will impact your margins.

    Concurrently you need to understand the tax implications of each scenario.

    So essentially you need to engage a good Accountant and a good banker or broker.