Where do I start - Melbourne

Hi,

New wannabe developer here, just wanting to know from peoples experience, when you have received your loan how long do you have to search for properties and make an offer before the loan expires? I get i should be researching market trends prior to this but to actually search for residential properties how long do I get and should i feel pressured to find something within this time or can it be easily extended and If so how?

thanks
Nick

 

Hi Nick,

A property development will typically go through several stages. Generally it will go something like this:
Offer>Contracts>Due Diligence>Settlement>Development Approval>Building Permit>Construction>Titles>Sales

If you are looking to acquire a property, a pre-approval usually lasts 60-90 days, and it is pretty easy just to get a new one unless there has been some major changes to your financial position. In addition to that, you could always make your offer subject to finance.

In short, you should never feel 'pressured' into a deal because of fear or desperation. This is a recipe for disaster.

Sometimes it's important to get in quick to secure a deal, but be sure you safeguard yourself with conditions in your offer (subject to due diligence, subject to finance etc).

Rgds,
Angad