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I am curious as to how this has worked out with you with your approach to the bank last week. There seems to be so many different things about developing property and how to go about making some decent equity of cash flow out of it…. who would have imagined you would have to jump through so many hoops.
Hi Dave,
Thanks very much for taking the time to share this. I might PM you and we can chat further.
Hi everyone,
Thanks for all your advice. It has been really useful. I've decided not to go with apartments for many of the reasons that have been mentioned, in particular: keeping it simple given its my first project, financing for such a large project, resale (as there are a lot of apartments going up in Boronia in the mid term) and the 2-3 years it will take to get town planning approval.
I've decided to go ahead and get the plan and permits for townhouses and then sell the land with plans and permits (or develop if possible at that stage).
One question I did have – I've heard that some people do the following: Get plans and permits, get builder lined up, pre-sell the townhouses using two contracts – one for the land and then another contract with the builder for the construction. This way they get the money for the land upfront and also get a better price as they are selling individual townhouses as opposed to land with p&p to a builder. Apparently Knox council allows this as well. I'm thinking this might be a better option for me than just selling land with plan and permits.
Does anyone have any experience in this? Would love to hear your thoughts.
