All Topics / Value Adding / Development process

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  • Profile photo of gavinhgavinh
    Join Date: 2004
    Post Count: 25

    Hopefully one of you more experienced developers can clear this up for me.

    I am looking into developing my property into 2 villas.

    As a novice I am unsure of the of the order in which my development will proceed. Obviously I have to get plans drawn up and then a D.A for them. Is it at this stage that I can go and get finance for the build?, or do I need to get a constuction certificate first.

    It would be much easier on my cashflow if I could obtain finance from the D.A stage, and then pay all my council fees ,subdivision fees ect from the build finance.

    Any thoughts?


    Profile photo of loccolocco
    Join Date: 2007
    Post Count: 62

    Hey Gavin,
    I think from what i can understand that the block is vacant??
    If so you need to get plans drawn up first and approved via council. Once this is done then you go for building permits and that is where the fees will kick in, you will be charged a fee for town planning approval.

    Hopefully that made sense??


    Elijah Homes
    [email protected]

    Profile photo of gafamagafama
    Join Date: 2004
    Post Count: 118

    HI Gavin

    Most financiers will want to see at least rough plans as they do their own feasibility on your site before they decide whether or not they will lend on the project.  We get provisional finance all the time for developments without a DA but you do need to have at least some concepts and a property prepared feasibility with ALL the details.  The better your feasibility the more confident the lender knows what you're doing.

    You might find that your lender will be prepared to give you conditional approval on the proviso that your DA is accepted.  Obviously if it's not they're not going to lend you.

    As you your question as to whether or not you can fund the DA costs from the lending, if they're lending on the development itself, then obviously it will need to be approved.  YOu might have to foot the bill for the initial stuff from your own pocket (or get an investor partner) but might well be able to repay yourself once the DA and finance are approved.

    Hope that helps!



Viewing 3 posts - 1 through 3 (of 3 total)

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