Property development in Australia is like driving on a highway. In fact, the road is already planned. Of course, you can change from one driveway to another, or you can continue to change. However, the driveway is limited. Your range of activities is also very limited.
Australian real estate development involves a range of processes from land purchase to development facilities, so it can be said that real estate development is not only to build houses, but also to create a generally accepted product.
There are rules in every industry. In my opinion, the rules here include two aspects. In large terms, the ultimate goal of real estate development is to obtain development profits, and the premise of realizing profits is the realization of predetermined sales prices. Lock in the scheduled construction cost and complete the scheduled development cycle on time.
On a small scale, the basic process of project development and the relevant documentation, financial planning, and legal norms that may be required, The convergence of professionals and emergency strategies for risk emergencies should be basically clear before the start of the project, as if officers were bound to conduct sandtable exercises before a command war.
This will involve the accumulation of a great deal of expertise and experience, especially when the project takes place in the context of rules and social forms that are not very familiar to itself. It is particularly important to find a professional person or team to guide and assist in the smooth progress of the project.
Australia`s land ownership is clearer, mainly in the name of goverment, the company and the private sector, which is responsible for the release of the land in the new state, which manages the land. Therefore, land ownership and other issues must be taken into account by developers.
Secondly, the location of the land has an impact on the purchase cost and the price of the project, and these factors are closely related to the development profits. When buying land, consider whether you are close to stations, highways, schools, shops, infrastructure, etc.
In addition, special attention should be paid to the functional zoning of the land, that is, the zoning, is mainly divided into commercial (Commercial), residential land, (Residential), industrial land, (Industrial), agricultural land, (Agricultural). Residential areas sometimes distinguish between high and low density.
In some areas, the city hall may impose more restrictions on development in terms of height, volume, and so on. In addition, developers also need to pay attention to whether there are buildings on the land to be purchased, whether the buildings are cultural relics, whether they can be dismantled, whether there is a need to protect important plants that are restricted from development, and so on.
1. Real estate development process: application for DA and CC
DA is the abbreviation for Development Approval, also known as the development application.
As a developer, building a house, creating more value in an open space is your top priority. And the first step in value creation is to get approval for development.
The one in charge of approving DA is the local city, goverment, or Local Council.. Once the DA is approved, the price of the plot will not be the same, with a very specific costing and profit base for a piece of open space, and it will be clear how many homes are approved for construction.
Approval is the most important step of a development project, Council more than one floor is more than one floor of profit. So when buying land, try to consult experienced designers or town planners to reduce this risk. Get approval time is a few months, long is a year or two, each city goverment time varying, need to be careful.
2. The next job is to apply for CC (Construction Certificate)
If the application for DA is a project, then the CC is the specific structure, simply to review the construction drawings, especially the appearance, once determined, can not be changed. So conceptual design needs to do some homework, when the design does not meet the market, or does not meet customer requirements, approval applications are very likely to be rejected, so it is best to consult the city hall in advance if necessary. The construction design details the conceptual design as much as possible, and is used for bidding and as a foundation drawing for construction.
3. Real estate development process: pre-sale (Pre-sales)
When all the relevant approvals are complete, the property can be sold, which is called (off the plan).
Pre-sales are usually handled by real estate agents, who charge a partial commission (2% to 5%). There is usually a Master Agent unified management sales problem, this Master Agent will have a lot of third-party intermediaries, the number of third-party agents, the higher the commission will be charged. Property sold through a third party requires a partial management fee to be paid to Master Agent at the same time.
The commission is usually paid to the sales company in two instalments. After the customer signs the purchase contract and pays the down payment, 50% of the commission will be paid to the sales company, and another 50% will be paid after the completion of the project.
A client`s down payment (usually 10%) does not go directly to the developer`s account, but to a lawyer`s trust account. The buyer began to pay the balance at the time of delivery, so Australian developers paid back money not at the pre-sale stage but after the house was delivered. And banks usually require a certain amount of advance sales before lending.
4. Real estate development process: building (Construction)
Once the advance amount is reached and the loan is approved, construction can begin.
As a developer in Australia, construction is a very important part.
During the construction process, contractors generally complete part of the construction work within a specified period of time and apply to the developer for payment. But instead of making a one-off payment, the hi first checks whether the contractor`s application is reasonable and, if so, will pay it directly to the contractor.
5. Real estate development process: residence permit (Occupation Certificate)
After a lot of hard work, your house has finally been built, but before delivery, all the houses must be accepted by the municipal authorities, after the acceptance, before being able to move in, this process is to get the Occupation Certification.
Municipal is mainly responsible for acceptance of structural and quality issues, including fire prevention, power supply, water supply, etc.
After holding OC, the developer can let the household enter the new house to carry on the inspection.
6. Real estate development process: delivery (Settlement)
Smooth delivery is the developer`s final step back, but also the most important step to achieve expected profits.
Failure to deliver or delivery on time can lead to the termination of the sales contract and affect the developer`s profits. So developers or sales agents should help buyers deliver on time, for example, notify buyers in advance to apply for loans or prepare delivery materials.
