Brutal Art Design + Build » Property Development

Do you have plans for 2012? Part 2 – The process

Brutal Art Design + Build — Wed, 25 Jan 2012 05:53:53 +0000

In part one of Do you have plans for 2012? Part 1 – Your homework, we talked about looking for a suitable property to purchase, for development and sub-division. Perhaps you don’t have to look any further than a property you already own.

There are many people who already own a property that is suitable for development.

So how do you know if you can develop?

You can hit the ground running in 2012 if you already own a property, by engaging Brutal Art Design + Build to provide you with a Property Development Assessment to ensure you can legally develop you site. 72 hours later, you will know whether or not you can sub-divide your site, what planning and zoning controls effect your site and their impact, along with a summary of development options – how many dwellings and what type you can fit on your site, taking into consideration the sites attributes. You will also be provided with a high level feasibility which will be of use when talking to a financier.

Now that you know it is possible to develop your site (you will have completed Step 1: Assessment), we have a structured process to take you from town planning, through to signing up a builder to build your project.

Step 2: Strategy will provide you with council feedback on your proposed development, and a direction for your project.

Step 3: Concept will give you the understanding of what your dwelling/s will look like, ie where are the bedrooms, kitchen, living area, etc. You and council will also have the opportunity to provide feedback, for refining the plans.

Step 4: Application is the preparation of a town planning application, advertising and notice of decision – a town planning permit.

Step 5: Detail is where the working drawings are produced, the specification prepared and the engineering done ready to engage a builder.

Step 6: Build will leave you with your dwellings/s built, ready to sell, rent out or occupy.

Step 7: Realise that your project is complete

This is a basic summary of a process that can take between 12 and 24 months to complete, without complications. There are many layers to property development, so it is important to engage a professional who understands the process.

PLANS FOR 2012?
Thinking of developing? Engage us for a Property Development Assessment today!

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Do you have plans for 2012? Part 1 – Your homework

Brutal Art Design + Build — Wed, 11 Jan 2012 05:09:41 +0000

Are you looking to develop a property in 2012? If so, now is the time to start doing your homework. There are a few things you can do to begin the new year with a clear development plan.

What type of development are you looking to do? This will determine the size of the land that you need to find. You can read one of our earlier articles on What is the minimum size of land to subdivide in Victoria?, which will discuss this in more detail, however if you use the ‘300m2 per dwelling rule of thumb’, this will guide you to properties with development potential. If you are looking in areas of higher density, then different rules apply.

Now it’s time to look for a suitable property. What makes a suitable property you ask? There are a number of factors that make a property suitable for development; its location, convenience to transport and amenities, the precedent of sub-division in the area, location of the existing house, zones and overlays, and location and number of large trees on the site.

Researching what properties are currently on the market that fit with your requirements and speaking with local real estate agents, will continue to refine your search for properties with development potential. Local agents will be able to give you a ‘feel’ for the area, what accommodation type is in need and current rental demands.

Funding your project is another factor in the property search. We generally find that the value of the land often reflects in the margin, that is to say, a lower acquisition cost for a property, does not necessarily make for a more profitable project.

Rather than going straight to the bank, summarise your proposal and book a meeting with a financier who understands development and subdivision finance. Get an understanding of what borrowing capacity you have, because this will influence the type of project you can undertake. We suggest talking with the team at Onyx and if you tell them we sent you, they will look after you.

Having reduced your list to just a few possibilities, it is important to know that the site can be legally developed and the development options available. Brutal Art Design + Build are able to prepare a Property Development Assessment to ensure your potential property can be developed, prior to purchasing the site.

PLANS FOR 2012?
Thinking of developing? Engage us for a Property Development Assessment today!

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Last round of Property Development Assessments for 2011

Brutal Art Design + Build — Wed, 14 Dec 2011 05:49:21 +0000

Christmas is fast approaching and the Brutal Art Design + Build team are busy doing the December dash.

If you would like a Property Development Assessment to ponder over the Christmas break, you will need to order and pay for it by close of business Friday 16 December 2011, to ensure we can have it back to you before we break for the year.

The team will be finishing up for the year at 12 noon, Wednesday 21 December 2011 and will be back at the drawing board on Monday 9 January 2012.

We would like to thank our clients and loyal website followers for the opportunity to work with you on your projects this year and for reading all our articles.

We will be publishing a couple of articles just prior to Christmas for you to read over the break.

The Brutal Art Design + Build team wish you a safe Christmas and we look forward to helping you achieve your property goals in 2012.

LAST ROUND FOR 2011
Thinking of developing? Engage us for a Property Development Assessment today!

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Intergenerational Housing: Shifting Wealth – Part 2

Brutal Art Design + Build — Tue, 18 Oct 2011 04:27:25 +0000

In Part 1 of Intergeneration Housing: Shifting Wealth, we talked about the expense of land and the difficulty of adult children being able to purchase property in the neighbourhood in which they grew up. We discussed two scenarios on how intergenerational housing could work and this week, we discuss another two scenarios.

Scenario Three:

It is becoming more common for families, and sometimes friends, to pool their resources to buy and develop land for the purpose of creating a viable housing option. It may be that by putting their lot in together they can afford to live in a location that is otherwise out of reach.

Let’s say three families or friends are looking to buy in the same area. They set down their goals and can then target the type of property they need in order to suit these needs. For example they might each desire a three bedroom dwelling in a certain neighbourhood close to certain amenities. They form an entity to purchase the property (or perhaps purchase as tenants in common) and they develop the allotment into three dwellings on three new titles.

Scenario Four:

An intergenerational shared investment where mum and dad have the property behind them and would like to help the kids out while providing for their own retirement income needs. In this scenario the parents and their children come together to purchase and develop a simple two unit, three unit, or dual occupancy project.

With the intentions clearly agreed at the start of the project ultimately mum and dad end up with an investment and the children have a house of their own, with each securing their property for significantly less than they otherwise would.

Summary:

Pooling resources is becoming more common in making a project more viable.

Needs have changed and many people are happy with less land as long as they are close to the amenities that are important to them.

We are living longer and the transfer of wealth is more commonly occurring between generations by agreement rather than by inheritance.

Subdivision and design can help shift wealth from generation to generation.

How we can help:

Property Development Assessment to establish if your property can be viably developed

Advice on finding the right property

Land Use Plans to explore the options

Town planning applications

Project design and documentation

Subdivision services

A tailored design and build solution

CONSIDERING SHIFTING WEALTH?
Thinking of Intergenerational Housing? Engage our Design and Build services today!

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Intergenerational Housing: Shifting Wealth – Part 1

Brutal Art Design + Build — Wed, 24 Aug 2011 06:07:01 +0000

“Let’s face it, we don’t have expensive housing in Australia, we have expensive land. The average cost of residential land overtook the median cost of constructing a dwelling, across all Australian capitals, about five years ago. The difference between the two is now considerable and growing.” Michael Matusik.

We are finding that more and more people are considering property development for the purposes of bringing families together in a completely different way to the traditional housing models of previous generations. We shall explore some scenario’s in Part 1 of this two part series.

In part, this shift is a response to land costs and the inability of adult children to purchase property in the neighbourhood in which they grew up. There seems to be a new way of addressing the issues confronting both older and younger generations using subdivision as a way to shift wealth.

Most commonly, these arrangements are around the gift of land from one generation to the next. In simple terms, this means mum and dad agree to subdivide the land on which the family home sits so that their children can build a home. However, there are many different ways this can be done, and the benefits can be great.

Scenario One:

Let’s say a family grows up in a middle ring suburb on an “average” 700m2 allotment with a traditional detached dwelling of three bedrooms and plenty of backyard to exercise the Victa lawnmower. Now mum and dad are older, maybe retired – or soon to be – the kids have gone to university and are now a little bit over the share house thing and are looking to settle down. They would like to settle back into the old neighbourhood but the cost of land is prohibitive.

In this scenario we are finding that the solution may be the subdivision of the family home into two or more allotments. In this way, mum and dad can downsize without leaving the area they know and love, and can give the children a ‘leg up’ on the property ladder.

Scenario Two:

Recently we took on a project that essentially covers three generations and is all due to a family legacy. The project brief was to retain and modify the existing dwelling and build two additional dwellings on a large (approximately 900m2) suburban allotment. In this case the original house was left to the children after the parents passed away.

The house was sound and had sentimental value so it was decided it should be updated and retained. The two siblings to whom the house was left decided to also introduce a third generation (an adult child of one of the siblings) to also be part of their project. So, that which started as a family home on a generous suburban allotment, will now house three families.

Conclusion

There is a shift in traditional housing models of previous generations, towards intergenerational housing.

Land is expensive and we are currently seeing our towns and cities being re-shaped to suit new housing types.

Intergenerational housing is an opportunity for parents to give their children a ‘leg up’ on the property ladder.

In Part 2 of our Intergenerational Housing: Shifting Wealth, we will explore two more scenario’s.

CONSIDERING SHIFTING WEALTH?
Thinking of Intergenerational Housing? Engage our Design and Build services today!

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