Major Development

Thanks. REA is Estate agent???............The thing is that we would sell alone, we would sell with the best 4 or the whole 12 would sell., so it doesn;t have to be the whole lot. I am only speaking for me and my wife here....before going to meeting. So we are 11 acres. Gum studded and the Cobblers Creek Trail through us. So wake up, security guards, jump on the bike, press the buzzer and ride 20k through the city of adelaide, under freeways through tunnels, over bridges walking bridges here and there, big gums, back for Muisli I'll get you a Video.

 

This is the first ride out on a Breaker.

 

and this is me

https://horseproblems.com.au/about-mr-horseproblems/

 

Your property looks very nice.

The order of which lots to develop first is generally dictated by the site conditions and where all the existing services and infrastructure is. If the other lots are closer to the existing access roads, sewer, water etc, then they will be developed first.

The fact your agent now represents the developer doesnt sound great, i hope you have someone in your corner helping you guys.

A couple of big names stated above, colliers, cbre, you should definately give them a call. Also look up www.realcommercial.com.au and look for who is selling the land development sites in your area, they can also help.

If you decide not to sell to this developer, you should think about grouping with a couple of the other sites and getting a permit first, or at a minimum, at least a concept plan, then selling. You will get a better price for your property and the payment should be more immediate. The developer is not wanting to pay you now because they are minimising their risk and upfront payments, if you get a permit, some of the risk will be gone, so they can pay more and in a shorter timeframe.

If you want to go down the permit path, ask one of the land development selling agents for a recommendation on a planning/surveying/engineering firm who can handle the permit process for you.

 

Most kind. Thanks for taking the time. Thanks also for the wonderful advice. We shall follow up and see. The part that we think is a little unkind, is that the Contract says that "due diligence" ( which started last August and finishesin April) is given unitl November 2022 and yet they are already wanting to send in Soil Test Unit. We asked that they at least drop that back to JUne 30th, 2021 but they woujldn't. Seems a Hell of a long time for it when it started last Augusts. Anyhow, thanks all.

 

Soil testing is important as trenching for the services and road construction will vary depending on whether it is rock, sand, clay etc.

 

Yes, of course but surely you don't do that unless there is a Green Light??

 

What would be a preferable size for most developers? We can have 11 acres, 44 acres or 120 acres.

 

Soil testing is part of the due diligence, especially for a big site like yours and your neighbours, as stated above the soil affects the feasibility of the project, therefore it should be done in due diligence. Its a good thing, they are being thorough. Every dollar they spend on due diligence is getting you closer to an unconditional contract.

 

I'd expect quite a few more consultants to be coming onsite, if they havent already:

Land surveyor to do a survey
Ecologist/arborist to examine the flora and fauna
Bushfire consultant if there are any large groups of trees or fire risks
Cultural heritage consultant to dig holes to look for aboriginal artefacts, especially near waterways
Any other consultants that are required to examine the site conditions to determine the feasibility of the project

 

Yes, he has also asked for those approvals already.

 

Just up the road from me. I went to GGHS

 

You're next to the settlement yes?
It's not as simple as you think to just create a new estate.
Nice area though.
Have client who sold up nearby, they were trying to hold as long as possible, knowing would eventually be bought up by a developer.

 

Yes, One Tree Hill Road, Golden Grove. 2 minutes from the new woolworths

 

If your land currently is still zoned rural then there is probably a good two to three years of work to be done by a developer to get approvals to rezone it to residential and that's only if the local and state governments have agreed that the area should be targetted for rezoning.
Unfortunately most large developers will want to tie you to a contract for that but not pay until the end but at the end of the day the choice is yours. If you want better terms and a buyer to pay up front then the amount they are willing to pay is likely to be less as they need to factor in the holding costs and the risk of buying something that doesn't get approvals to rezone.

 

Yes, thanks, we knew that but in this case, due diligence started last August and finishes 15th April next. The put and call option has been now changed to a Contract. This is why we question the due dilgence clause of NOvember 2022 for we will bet our best Horse, it's all over red rover and he's hedging a bit to far his way.

 

@Linda O'Leary

The reality is, in your current situation, both the developers and the real estate agent will try and drag out everything as much as they can. They are not acting in your best interests. The real estate agent may have done so before, but is no longer doing so.

Ideally, if you can wait the 1-2 years and you and your neighbours have some cash between you, it might be a good idea to apply for the development yourselves, and then sell the amalgamated blocks together with the development consent included (assuming it goes through).

This is ideal because land sold like this can be "monetised" sooner, so the bidding from potential buyers will be stronger and usually settlement will be for faster time periods.

What you are currently doing is bringing a knife to a gun fight.. Its hard to get results you want when you have no leverage in the negotiation.

The second best thing you can do, as other posters have said, is get in touch with a real estate agency that will be able to properly represent you and put the land in front of more developers.

 

Thanks once again. Good advice. I wish I were Younger It's a Bugga. On another note, can You tell me why Developers aren't jumping on the Band Wagon of "Gated Community" ? There would have to be a squillion in that on our Lands, with the Trails, the big Gums, the Koala and Kookaburra. You watch Channel 9 News every Night here and they burn down your brush fences, fire bomb houses, burn the Cars in the Street, Home Invasions and God knows what else. Would't Flash Homes fly off the shelf and off the Plan, with the Fences and the 24/7 Security Guards on the front Gate????

 

Hi Linda,

I’d be interested to hear how you finally got on? I’m in a similar situation with a large parcel of rural land.
We are just at the beginning of a long journey a s have developers now approaching us with different proposal and we feel like it’s a mine field that we don’t know where to start looking for help.
Thanks

Hi