Development License Requirements

Discussion in 'Development' started by Eden, 12th May, 2020.

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  1. Eden

    Eden New Member

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    Hi All,

    I'm looking to dip my toes in the property development world while still working full-time.

    I already own a property which is rented out but I believe the block of land is large enough to build 2 townhouses which I would like to sub-divide and sell off.

    To embark on this project I could engage the services of a registered builder but this would eat into my margins.

    What are the license/permit requirements for me to manage this project by on my own via sub-contractors?

    Have any others on this forum taken on such projects and be willing to share their insights in terms of lessons learned and any pitfalls to avoid?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    You will need to confirm whether an owner-builder is permitted to build a duplex as this is specifically a dwelling built for someone else.
     
  3. thatbum

    thatbum Well-Known Member

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    Trying to owner build a development seems like the opposite of wanting to 'dip your toes' into property development!

    Shouldn't you be focusing on the big picture development work/research/DD and outsource the rest?
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    Owner builder licence is only available if you intend to live in the property after completion and not if you intend to rent or sell.
     
  5. Tufan Chakir

    Tufan Chakir Well-Known Member

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    Planning application for subdivision and/or development first....
     
  6. shorty

    shorty Well-Known Member

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    Actually I reckon do feasibility and a good long chat with your accountant first. Do the numbers stack up? Do you know about GST?

    Do you have any knowledge about the building process / risks involved? Regulations are there for a reason.
     
    Tufan Chakir likes this.
  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Are you talking about the costs that a builder might charge to project manage such a project or the ability to actually build it yourself? Quite often you can project manage the designer, town planner and builder yourself or a builder could have it all in house but they don't charge a lot for this.
     
    Lindsay_W likes this.
  8. Lindsay_W

    Lindsay_W Well-Known Member

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    More like diving in head first without checking the depth :eek:

    Owner building this instead of engaging the services of an experienced builder could actually end up costing you more.
    How are you funding it? Cash or loan required?