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As a property developer, one of the most valuable relationships you will have is with your builder.
There are several developers that Property Bloom works with, but we have a very strong relationship with our main builder and through this we find our work gets priority.
I have a negotiated discount structure in place for my clients and we often receive information on new <a target="_blank" href="?option=com_googlesearch_cse&amp;q=land%20releases">land releases</a> via our builder before land is registered. This lets us reserve the best dual occupancy or medium density sites.
Communication 
It’s very important you have open communication with your builder.
Establish a good relationship with the site manager, who you will work very closely with.
Ensure you know what stage the building works are at and meet the site manager on site regularly to check progress.
The site manager should alert you to any issues that may arise during the building works, particularly those that may add costs.
If this happens, work out a strategy to keep building works moving forward as there is nothing more frustrating than having to stop building works whilst you sort out an issue.
 
Different stages of construction
This will come with experience but it will help if you know what comes next as the building works progress.
Generally there are five major stages of <a target="_blank" href="?option=com_googlesearch_cse&amp;q=land%20releases">construction</a> and once each stage is completed, the builder will issue an invoice for payment.
You will pass this to your bank and sometimes they will send a valuer to check each stage before paying, but in most cases they will wait for the final invoice and send their valuer to check the building works have been completed before they release the final payment to the builder.
1. Slabs laid
2. Frame and trusses
3. Roof and brickwork
4. Internal linings and timber mould out
5. Final and practical completion
Once the final payment is received by the builder, there will also be a handover, which involves the keys and warranties and other important documentation being given to you.
It’s important for you to understand what happens within each of these stages.
It’s no good deciding you want to change the position of the shower or bath if the plumber has already done his rough-in.
A rough-in is installation of the drain, waste, vent, and supply lines to proposed locations of each fixture.
Also, if you are handling any items directly, such as the installation of air conditioning, you may want to have the pipes positioned in the walls or roughed-in before the internal linings stage (which is when insulation and plasterboard is installed) as this will give a better finish.
 
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Completion and occupation certificates  
Earlier on in your project you should have sourced quotes for the finishing touches such as fencing and landscaping.
Whilst I always have the builder include this in their tender, often we can save money for our clients by bringing in our own contractors.
If you do this, keep close track of time so that you can have these works finished to coincide with the handover and the final inspection by the private certifier or council.
There is nothing worse than having to hold up the occupation certificates, waiting for the landscaper or fencer to finish their job.
Some builders may not allow outside contractors on site until after the handover. If this is the case, have your contractors primed to avoid hold-ups.
Once all building works are completed to plan, you can apply for the occupation certificates. But well before this, you should show agents through so they can provide rental or sale appraisals.
Whatever you decide to do, you want to engage an agent as early as possible so they can start marketing and find tenants or buyers quickly.
It is at this stage, too, that you should order your depreciation schedules, which will ensure you maximise your tax return.
Simply pass on the schedules to your accountant when preparing for your tax return.
New buildings will maximise depreciation benefits and any professional consultant fees – such as a property development project manager like Property Bloom or architect fees – can be taken up in the depreciation of your development and are claimable as a capital works allowance (division 43).
Our relationship with our builder means that Property Bloom projects get completed as quickly as possible and that we are all working together to achieve the same result: high quality yet cost-effective property developments.
Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">Property Bloom</a>, which manages property development.
 
 
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It's important to have a strong relationship with your builder: Jo Chivers

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Property Bloom is just completing a three-villa development for a client in Muswellbrook. Under this council’s requirements we needed to design one of the villas for people with disabilities. The villa needed to be adapted to ensure that a person with disabilities could live there comfortably.
Some of the requirements included a kitchen bench designed so that it can be lowered, wider hallways, wider doorways with lever handles, wider access to the shower with a small ramp so a chair may be wheeled in, powerpoints located higher on the wall and a ramp with railing at the front for a stepless entry.
When first told of the requirement, our client saw this as a disadvantage, thinking that the villa would be less marketable than the others. However, as we’ve worked through the building of the development, I can see the opposite. This villa looks more spacious and I think the small adaptations will add value to it.
We have an ageing population where at some time in our lives we are going to want to live in easily accessible homes, with no stairs and wider access for our walking frames or wheelchairs. In addition, almost 20% of Australians have a long-term disability. As the Australian population ages, this percentage will increase.
As we age, we want to live independently for as long as possible, so having more <a href="https://www.propertyobserver.com.au/news/australian-housing-still-least-affordable-in-the-world-despite-recent-improvements-fitch/2013010958698" target="_blank">housing</a> specifically designed for the elderly and disabled makes sense. An accessible home is about freedom – freedom to move about with ease and confidence, knowing that regardless of our circumstances we can remain relatively independent.
Too often our homes are not equipped for changing needs, from raising small children, to welcoming or looking after <a href="https://www.propertyobserver.com.au/demographics/how-australia-s-ageing-population-will-affect-residential-development-peter-chittenden/2013011458755" target="_blank">ageing</a> parents, to recovering from a sporting injury and needing to use crutches or simply finding that the stairs are steeper than they used to be.
Designing an accessible home will not only produce a sustainable home but one you could live in comfortably for a lifetime. This could not be more relevant than now. As our demographics continue to change, there will be more demand for such housing.
More people than you might imagine unexpectedly need accessible housing. My husband, for example, recently needed a knee reconstruction after a surfing injury. We have two flights of stairs in our house, which did not make it easy for him. Australia-wide almost 22,000 people annually have orthopaedic knee surgery. My mother has had two hip replacements and so I can see the benefits that a well-designed home can deliver. Even bringing a pram into my house when I had my babies was tricky with our narrow hallway.
When designing, remember to integrate the adaptable housing components, do not isolate them or use a different standard of materials and finishes and the house will look less like a nursing home. This was our concern for the front entrance ramp and so we designed the balustrade to tie in with our slat fencing than go with the one that the draftsman had used on the plan which did look a little hospital-like.
One last thing to consider as well that I hadn’t thought of, even though my uncle is in a wheelchair, was carpet pile heights. Can you imagine trying to wheel through a thick carpet?
Embrace adaptable design and you may just find your developments in high demand.
Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">Property Bloom</a>, which manages property development.
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Ramping up adaptable design for the aged: Jo Chivers

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I love hearing the life stories of others and especially our clients. Our initial chats give us in insight into our client’s achievements and goals.
They tell us about what they do, where they’ve come from and where they want to be. We have such an interesting and wonderful group of clients and each has a different reason why they love property and what motivates them.
I’d like to share Alison’s story with you. Alison and her husband are both in the Australian Army and have just returned back from serving in Afghanistan.
While she was away, Property Bloom has been managing a granny flat development for them.
Sadly, during her time away, Alison endured some horrific things with fellow soldiers killed in action in the terrible circumstances in late August 2012, when five Australian troops died.
We were so proud to have members of the Australian Army as clients and are grateful for their work overseas serving Australia.
Alison:
“We first started investing in 2009, just after Harry and I got married.  We had just made a very 'grown up' commitment to each other, so thought we'd better extend that idea to other parts of our life and really plan for our future.
We purchased an apartment in the inner city suburb of Spring Hill in Brisbane via auction over the phone (we were living in Sydney).
I had started to listen to some podcasts about property investing and eventually came across a mentoring program which I signed up for and we spent a year learning an enormous amount and gaining amazing confidence and skill.
It was at this point that my partner Harry learned he would be deployed to Afghanistan for the majority of 2012. Shortly afterwards, I was posted interstate away from Harry, and then told I was to deploy to Afghanistan as a communications specialist in the second half of 2012 as well. We found ourselves in the position where we were keen to invest, but not in a position to be active in the short-term.
Whilst we had been actively investing, purchasing a house on the NSW central coast on a 12-month delayed settlement with a plan to renovate and on-sell following settlement, and four high-yielding houses in growth areas of New Zealand, we still wanted to use our savings to work for us while we were both overseas.
I had heard an interview with Jo Chivers on an 'Everyday Property Investors' podcast and liked the idea of learning to develop, with the convenience of a project manager. We also liked the idea of investing in the expanding Hunter Region of NSW. After contacting Jo, we realised that the Property Bloom property development project management service would be perfect for our situation.
We had the cash, but not the contacts, or the ability to cultivate contacts. We had the idea to develop, but not the ability to visit local councils and real estate agents.
We asked the Property Bloom team if they would be able to project manage with both of us in a war zone and they were incredibly supportive. Harry and I were both based in Tarin Kowt and had semi-reliable access to internet, e-mail, scanning and printing facilities. Through perseverance, patience and understanding form the Property Bloom team, we were able to continue to progress our Granny Flat project. Not only were Property Bloom understanding when we were unresponsive for a couple of days, or when the turnaround time for signing paperwork was more than a month, but whenever the news of a tragedy in Afghanistan hit the Australian media, Jo and her team would send us messages of support and condolences.
This support meant as much to us as the project management service they were providing for our development.
As you can imagine, developing property from a warzone is a challenge but would have been near impossible without the help of a project manager. The more obstacles we faced, the more our project manager rose to the occasion to help us. We are so grateful - not only because they have helped us secure and develop a fantastic property, but also because they are professional and incredibly genuine people.”
I really cherished the updates we would get from Alison occasionally when she had email access and was amazed at some of the conditions she had to endure including no running water for days – how is a girl to wash her hair!
But what amazed us the most was the huge commitment that Alison showed to continuing their property investment journey, by being able to continue with her project with all the other distractions she would have experienced in Afghanistan.
Alison and Harry are now securing their next development site on their own and we wish them all the luck in the world and are glad to have them home on Aussie soil again.
Alison’s story is a lesson in determination. She didn’t let anything get in her way, not even a war.
Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">Property Bloom</a>, which manages property development.
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Don’t let a war get in your way when investing in property: Jo Chivers

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Happy International Women’s Day... oops sorry, did I lose a few blokes with my first words?
I hope not because it’s 2013, not 1973.  Blokes now are much more understanding and supportive of our ability and achievements. There really has been some momentum gained.
This year’s theme for <a href="https://www.internationalwomensday.com/" target="_blank">International Women’s Day</a> is: The Gender Agenda, Gaining Momentum.
It’s actually not that long ago that at our first Federal Election in 1901, only women from South Australia and Western Australia were entitled to vote. So women in all the other states were not allowed to vote.  The other states did slowly followed yet it took Victoria another six years to let women vote.
The first woman to win election to an Australian Parliament was in 1921. Now, in 2013, we have Australia’s first woman Prime Minister. I’m proud of Julia Gillard’s achievement as a woman (not necessarily as a politician), but you don’t hear the blokes saying "gosh that Johnny Howard made me proud when he won the election." It was expected of a male. Wouldn’t it be lovely to keep the momentum up and see more women prime ministers?
Fast forward several decades. In 1974 the minimum wage was extended to women; wow, that was only 39 years ago.  So before this, women were not entitled to the same minimum pay as men.
Whilst we have laws attempting to create equal pay and equal opportunity for women it does not automatically transpire. This was one of the reasons I started my own business. After many years in the corporate world I witnessed much bias. Starting out as a secretary, I used to look forward to having one of my own when I climbed the career ladder. But when I was promoted to these roles, the males had access to support but there was no chance for me having any admin assistance. Perhaps I should have pretended that I couldn’t touch type!
By the time I was ready to have kids, I looked around the office and couldn’t see a way to keep my high-flying corporate role and start a family. I’ve seen business women continue with their corporate careers only to find it’s been an unwitting sacrifice for the opportunity to have children.
But one thing that drove me to keep working whilst raising my kids was the thought of taking ten or even five years off work, then I would be totally dependent on my husband not only during that period but also into our retirement. There would be no contributions made during this time to my superannuation and how could I keep investing in property if I had no income?
My choice to start my own business was to get the flexibility needed to be a mother but also to hold onto my independence. Whilst my husband is a generous man, I had flashbacks to my childhood when my mother would have to ask for her ‘housekeeping money’ from my father each week. Dad was generous too, but to me it represented mum’s dependence on dad. She seemed happy with this setup, but mum had no money of her own, nothing to dip into if she wanted to purchase a little treat for herself or for us kids.  To me, it meant: no money, no independence.
I think there is good momentum with the ‘gender agenda’ but I think it’s up to us to keep our own personal momentum. Women need to take responsibility for their own retirements and plan ahead.
One of my clients is doing just that, in fact I’ve never seen such momentum. Rachel has four children and worked (past tense… keep reading and you’ll see why she had to stop work). In her ‘spare time’ she also studied accounting by correspondence!  When I met her she had already purchased nine investment properties but wanted to move into property developing to propel her portfolio. Property Bloom had just completed a dual occupancy development for Rachel and started a granny flat project when she found out she was pregnant with twins. When she was rushed to hospital and the twins were delivery prematurely, she still found time to close her finance deal so construction wouldn’t be delayed.  She is an amazing inspiration and example of a woman who is focused and won’t let anything get in her way, not even six children!
Momentum comes to those who have done the hard yards. Momentum is an increase in energy or force when something is on a roll. I can see it happening in my business and I can see it happening with women’s equality. So keep moving forward in your world, keep asking for more pay, keep pushing for community projects, keep celebrating achievements and the momentum will carry on for our next generation of women.
Jo Chivers is director of <a rel="nofollow" href="https://www.propertybloom.com.au/">Property Bloom</a>.
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There is momentum in the push for gender equality: Jo Chivers

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After the passing of my father two weeks ago, I’ve found myself pondering a lot of things. Things I’ve learnt from him and things that I want to teach my sons.  Dad didn’t teach me by sitting me down to explain anything, he simply did his thing and I watched. At the time I didn’t even realise I was taking it in, but now looking back, his work ethic and attitude shaped mine.
When writing his eulogy with my brothers and sister, it was truly amazing to recognise all the different jobs he worked to make money. He seemed to always have an idea for creating some extra income, like when he was a milkman: he saw an opportunity to sell hotdogs to the farmers at the co-op where he picked up his milk, as they’d been up early to get the milk to the city and were hungry. So he kept a pot of hot water with the hotdogs and bread rolls in his truck and after selling out, he’d then start on his milk deliveries.
Another example was when he bought a white LTD car – with four kids he needed a big car. But he also used it for chauffeuring weddings on his weekends after working all week in his own tyre-fitting business.
Dad didn’t go to uni or study, everything useful he learnt was from doing it.
While I did go to uni years ago I don’t really use what I studied now.  Everything I learnt about property development has been from doing.  When I remember back to my first development, I really had no idea what I was doing, but I learnt from my builders and my surveyor and my tradies by asking lots and lots and lots of questions and then having a go.
When I made a mistake, I learnt not to do it that way. After 60 or more developments under my belt, I am still learning from each one because they all bring something a little different to me. These differences make up my experience.  I learnt to develop property by doing and repeating and then refining the process.
I see lots of people wanting to learn about property by completing more and more courses, doing more and more seminars.  Like my dad, I believe the real education comes from doing; it comes from the experience that you will take away from what you do.
Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank">Property Bloom</a>, which manages property development.
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You learn property development and investment by doing, not studying: Jo Chivers

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During my week, I get sent many potential development sites to assess.  I have a system that enables me to do a quick check before seriously considering any site.
My quick assessment looks at:
<ul>
<li>Location </li>
<li>Size</li>
<li>Slope or gradient</li>
<li>Aspect</li>
<li>Price</li>
</ul>
I’ll expand on these so you know what I look at.
Site Location
Obviously the first thing I’m told or see from the email is what town the land is in. If this town is one that we develop in or in a town we want to develop in I continue. We have preferred towns based on rental demand, sales values and growth history, where my builders will work and what the councils are like to work with. Once the town is approved, we look at the location of the site within the town. We know where the housing commission areas or other undesirable locations are, so we will rule a site out based on this. On the other hand, we know the premium areas of our towns, and I’ll get excited if the site is within these areas. They might be near major shopping facilities, hospitals, schools and parks.
The road or street the site is on is assessed next.  Busy/main roads are usually out and quiet roads close to amenities are in. New subdivision estates are good as long as they have been planned well and there is a limit on dual occupancies within the estate.
Size of site
The square meters we require will depend on the development strategy of our client. We need larger sites for medium density, 1,000 square metres or more for three-unit developments (single storey). For a detached dual-occupancy project we like corner sites around 750 square metres plus. For attached dual-occupancy projects, we only need around 600 square metres, although the width of the frontage is very important.  For our granny flat developments we like 800-square-metre-plus sites with dual access and the position of the existing house and whether it’s a complying site is very important.
If a site has passed the first two checks above, we move on and look at:
Slope or gradient of the land
This can be hard to tell unless we are standing there looking at the land or have a contour survey; beware photos, as they can be deceiving. We don’t like sites with more than about a one-metre fall but will consider them based on the price of the land. The more slope to a site, the higher the site costs such as retaining. If we can get the land cheaper, this will help offset the higher costs. Ideally a relatively flat site is best as long as there is adequate fall to the sewer line and we can drain to the street.
Aspect
We can quickly assess this even without a survey. Here’s a good tip: just look up the address on Google maps or in the street directory and check the compass rose on the page. Then visualise where the units will go and where the internal and external living spaces will be. An ideal site will have the living spaces facing north.  Aspect is not a deal breaker as long as the site is ticking all the other boxes and we will still proceed.
Price
Of course the price of a development site is important. But there is no point even looking at the price if the site hasn’t met the criteria above.  We have a good understanding on building costs for our developments so we can run a quick analysis now and see if the land is priced well. If not, we will let the developer, vendor or agent (whoever has offered it to us) know that the project is simply not viable at that price. If they are not negotiable then we’ll leave it.  It won’t sell to an experienced developer, although it may sell to an inexperienced one.
I can make the assessment above within about five minutes if we have a contour survey.  If not, I’ll call my builder’s nearest site manager and ask them to drive by and check for me if I’m not in the area.
Once we are happy with the elements above, we report back to our client and ask them to look into their conditional finance while we then start our more detailed assessments with council and our builder before negotiating the purchase of the site.
Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank">Property Bloom</a>, which manages property development.
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The five criteria to determine whether a block is suitable for residential development: Jo Chivers

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My story today is dedicated to my dear dad, who sadly passed away recently. I wanted to share something he taught me as a child and young woman and that I have used throughout my life and in my business.
He believed that with persistence and determination you can accomplish anything. I learnt quickly how to use determination to achieve what I wanted.
Dad was an entrepreneur. Not in the jet-setting sense of the word, but he was a hard-working jack of all trades. He was always looking for opportunities and was more than happy to take a few calculated risks; he was determined to do well.
Dad immigrated to Australia from Holland after World War II.  He served time in the Dutch Marines. But before he signed up, during WWII he was captured by the enemy and taken by train to work in Germany. He was only a teenager, but he escaped by jumping off the train in France and walking all the way back to Holland. It took him weeks and he lived on next to nothing. His determination carried him.
In Australia he was most industrious and very independent; he didn’t want to rely on anything but himself to make a new life. He arrived in Adelaide and worked in the fire brigade. He rode a motor bike across the Nullarbor Plains on the dusty, rough unsealed road it was back then.  He worked as a share farmer picking apples and pears in Batlow, one of NSWs major fruit-producing towns.
Then he met my mum.  After that he started a milk run in Sydney’s notorious Kings Cross, he used to give the working girls a lift home, so I was told!
In his next business he worked on the F3 Freeway when it was under construction, breaking through the massive rock walls with his excavator. I remember playing on what we used to call the “digger” as a kid. Finally, he started a tyre business on the northern beaches of Sydney, which he ran for many years before retiring.
Dad had a subscription to business magazine BRW, which I used to read from cover to cover after he’d finished with it, I would have been about 16. While he was a man of few words, one thing he liked to talk about was money. When I got a new job the first thing he asked was, “how much are they paying you” My sister had a delicatessen business and she always copped, “so, how much did you take today?”  I think this really helped focus us on making money.
There was certainly a big influence from dad to work hard and not bludge.  He had a colourful way of talking about those who he thought were not pulling their weight.  So that is exactly what we kids did: work hard. We all had various part time jobs while still at school.  My brother went on to study medicine and is a highly regarded specialist in his field, my sister still owns her successful delicatessen business, and my younger brother scaled great heights within the NSW Police Force. At the same time, we’ve all raised families and invested in property.
When I stated investing in property it made dad proud. He’d done well from building his own home. Paying just $12,000 for a big block of land and only another $50,000 or so to build their house years ago, they made a pretty penny when they sold it.
Whenever I saw dad in the last few years he’d say, “Well, you’ve done well, Joey”. He loved to hear about the properties I was buying and the growth of my business.
Now that I look back over the past 12 years of so, it was hard to start a new business and build it at the same time as raising kids. It was hard to hold onto property when it would have been easier to sell.  But now I realise it was my determination in not failing that saw me through, and we are now reaping the rewards. I was determined to do well and make my dad proud.
Thanks, dad, for giving this to me.
‘Dick’ Marius van der Griend
1923 – 2013
Jo Chivers is director of <a target="_blank" href="https://www.propertybloom.com.au/" title="Property Bloom">Property Bloom</a>, which manages property development.
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The power of persistence and determination, in property investment and everything else, will get you far

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It’s been about 12 years since I started my business. Within this period I’ve established many business relationships.
The thing that I’ve really learnt is that relationships are extremely valuable.  Not shallow, B.S. relationships but good, strong established relationships that can only really be made with time.
As a property investor and developer, having good relationships can propel you further than you could imagine. Just this week, my relationship with one of my builders gives my lucky new client the opportunity to purchase a choice development site. This site is owned by my builder’s company, and they’ve been sitting on it for a little while, land banking.  The beauty of this deal is that Property Bloom has already completed a development in the same subdivision for another client. This project was one of the best results we’ve achieved to date, with the creation of over $220,000 in equity in just over a year.  So I knew it was a hot site, I knew what the build costs would most likely be and I knew that my new client could never find a deal like this himself.
The benefit to my client is time and risk minimisation. Because the land is not on the open market, we have the time to spend looking closely at the project. This development site has been offered to me exclusively. I now have the luxury of time to show my new client the land and take him through the project analysis. If this site were to hit the open market, that luxury is removed and there would be a rush to secure the site. This is where errors in the analysis process can be made, when there is no time to properly assess a site. The price of the land can also be driven up by multiple parties.
Here’s another good example of how a strong relationship helps both parties. We have a preferred real estate agent in one of the large towns in the Hunter region we develop in. This agent is savvy. He also understands the value of relationships. He’s been building one with me for 12 years.  He will call me as soon as he has a good development site, before it hits the open market; he knows what I’m looking for. I know where I stand with him when we are negotiating a purchase.
In return, I refer him business – because he’s a great agent, I have no hesitation in recommending him. He has offered our clients a good discount in property management fees and so he and his business has become our preferred agency in this town.  We scratch each other’s backs.
From our arrangement, he gets all of my client’s properties to manage.  Believe me, I would not refer his business to my clients if he didn’t have the best property management team on staff, and he does.  There were a few years when he took a break from the industry, sold his agency to one of his staff, and I never heard from that new owner again. The relationship he had worked so hard to build was easily broken by the new owner when he didn’t call. I didn’t have faith in the business so I stopped referring it. The new owner didn’t understand the value in keeping the established relationships. I'm glad to say, my agent resurfaced in a larger town a few years later and has worked hard to be one of if not the best agent in this area. We were back in business.
Our business relationships are precious and we nurture them accordingly. As a reward, our clients get priority service from several of our suppliers, our pest and building inspector, our surveyor, our architect, our certifier, our builders, our trades – plus we get to work with an awesome team of people who we respect.  You can’t buy this, you need to build this, and it all comes together with time.  Over time, you work out who you need, who you can rely on and most importantly, who you like doing business with.
Jo Chivers is director of <a target="_blank" href="https://www.propertybloom.com.au/" title="Property Bloom">Property Bloom</a>, which manages property development.
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Strong relationships the cornerstone to successful property investment

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I met an interesting chap today.  He has developed property before and is experienced but was looking to fast track his property portfolio this year.  He also owns and runs a large business and doesn’t have the time needed to focus on property developing. Although he loves it, finding suitable sites was time-consuming. He needed some help because he understands too well the rewards developing can reap and how time equals money.
I’m happy to say that our meeting today may have made him $110,000 and we haven’t even located a site for him yet!  I’ll explain how.
He is currently holding two development approved dual-occupancy sites, and one of the questions he asked me was “Jo, should I build my approved duplexes or sell the land DA approved? Which will make me the most?”
A good question to ask.  His strategy was to accumulate property quickly and hold for the long term, but what was most important for him was to create equity. So, what scenario would be more profitable?
To build or not to build, that was the question.
I thought I’d nut it out for you today so you can see how I answered him.
OK, firstly you need to know that the approved site he was thinking of selling is part of a prior development. He had purchased a large block of land with an existing, yet run-down house. He gained approval to build a duplex behind the house and subdivide, essentially cutting the block in two. He has already completed this part of the development. Then he gained a second approval to demolish the old house and build another duplex on the newly created lot at the front.
He wanted to know if he should sell the front lot off with approval or build the duplex and keep them or sell them.
There are several considerations:
<ul>
<li>Capital gains tax if selling the villas</li>
<li>GST if selling the new villas</li>
<li>Selling costs if selling the approved land or the villas</li>
<li>Costs to get it to development application approval and almost construction certificate approval</li>
<li>Maximum equity that can be created</li>
<li>Yield if he held all four villas</li>
</ul>
Remember he had developed the block originally and the old house was renting for $180 per week, which helped cover holding costs so he could easily sit and land bank if he wanted to.
He paid $200,000 for the land with original dilapidated house; it was on a large block with separate access at the back.
The cost to build the duplex at the rear of the house was $350,000, including subdivision costs.
The two villas he built were valued at $300,000 each.
So on this part of the development, his cost was $200,000 (land) + $350,000 (build) = $550,000.
Remember the two villas are valued at $300,000 each. So he’s made $600,000 less costs of $550,000.
His equity is only $50,000 so far, but he still holds half the land with the old house on it.
 
<hr class="system-pagebreak">
 
If he wants to sell this DA-approved land, he needs to consider how much the next person will make. You can’t just pluck a figure out of air and sell the land at this price. It’s important to work backwards so that there is something in the deal for the next person otherwise you won’t sell.
I estimated that he would need to sell the land around $170,000 for the purchaser to build the duplex ($350,000) and to make a profit.  $170,000 + $350,000 = $520,000.  The value of two villas is $600,000, so there is $80,000 in it. That’s not enough for everyone to be happy, but if a builder buys it he may be able to construct for less.
Note, I haven’t included other costs such as stamp duty and holding costs, so we are looking at very rough round figures. Based on this, his gross profit at this point (roughly) is $50,000 in equity after building the back duplex plus the $170,000 land sale. So $220,000.
But, if he held the land and built the duplex he would be much further ahead.
Original land cost: $200,000
Build back duplex and subdivide: $350,000
Build front duplex $320,000
Total cost $870,000
Total end value if each villa (four) is worth $300,000 each: $1.2 million
$1.2 million to $970,000 cost = $330,000 in equity.
So he’s creating around $330,000 in equity vs. $220,000 if he sold
(Less costs on both sides, so again I stress these are rough figures).
He can create an additional $110,000 or so if he builds and holds.
He told me that the three-bedroom villas are renting at the back for $320 per week (which is actually low in this market and should be at $350 each). With four villas returning $320 per week, that equals $66,560 per year. The total cost of the project if building the four villas is $900,000. This means the gross yield 7.4%.
So he could achieve a 7.4% gross yield plus make $110,000 if he holds.
I won’t go into the sell scenario as there are too many costs to include. It’s very important that if you develop to sell that you work closely with your accountant to consider costs such as capital gains tax and GST when selling. Anyway, this chap’s strategy was to hold if he builds. So the yield and equity creation was more important to him.
I hope this makes sense. The numbers can be hard to follow and obviously need to be much more refined than what I’ve used above but this may give you a gist of how you can make good money from developing if you make the right decisions.
Jo Chivers is director of <a target="_blank" href="https://www.propertybloom.com.au/" title="Property Bloom">Property Bloom</a>, which manages property development.
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How to determine whether to build on your land or sell it

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“Aaahhh….” That’s the sound I made when watching Hugh Jackman receive his Golden Globe Award this week for best actor.  I was impressed with the credit he gave his wife Deborra-Lee Furness for helping him keep faith.
Keep faith?  A talented and experienced singer, dancer and actor, yet he admitted he had doubts and lost confidence during rehearsals for Les Miserables. The man is not only truly amazing but honest.
Jackman nearly quit due to feeling overwhelmed and unsure of himself.
"Three weeks before we started filming, we had a terrible day of rehearsal, a humiliating day. I came home to Deb and I said, 'It's time, I've gotta ring him [director Tom Hooper] and tell him there's someone else to take this role.
"I really thought I'd bitten off more than I could chew … My wife talked me off the cliff – thank you for always being right, baby," he said.
Wow, even Hollywood stars want to give up some times. It just goes to show how human he is. Yes, Les Miserables would have been a very ambitious production for anyone to take on, but look at what Hugh achieved by pursuing the role and getting on with it – with the support of his wife.  Not only did he win the Golden Globe for best actor, but he’s been nominated for both an Oscar and a BAFTA award.
What a great example of taking on a challenge, conquering fears and using the support of others to help get through to the end.  And look at the rewards he reaped.
So what unnerved him?  Jackman must have thought about the risk. The risk of not doing his best, the risk of doing something he had never done before, the risk of failing.
We all have doubts at some time or another.  While I’m not comparing a property development to a musical movie adaptation, I couldn’t help but reflect that property development can seem just as daunting.  When developing, you really don’t get “rehearsal time”; it’s just a matter of good planning and then taking action.
I have seen people give up on their property development, quitting when they have hit a dead end with the council. Quitting after starting a renovation and not realising just how big a job it really was. Quitting after not hiring the right people.
As development project managers, it’s our role to manage the fears of our clients and the risks of the project.  With risk comes reward.  It can be a big decision to take on your first property development.  But once our clients make that decision, we move them forward quickly. They start seeing results quickly and realise that development can be a good challenge and they don’t have to do it alone.  Often the hardest thing is to make the decision to start.  If you have the support of someone to help you then you won’t feel alone. So enlist a friend or hire support in the area you need it and keep moving forward.
The start of a new year is a great time to stop procrastinating and commence that project you’ve been researching for so long. Have faith and use support like Hugh Jackman did.  You too could end up with an award-winning result.
Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank">Property Bloom</a>, which manages property development.
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The importance of faith, or what Hugh Jackman can teach us about property development

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Joel Robinson

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

A local downsizer has splashed $6.5 million on a penthouse in Perifa's Alex &amp; Willow development in Crows Nest. 
&nbsp; 
The purchaser sold their long-held family home in the area before embarking on a six-month search for the right apartment. After inspecting a range of options across the Lower North Shore, the buyer returned to <a href="https://www.apartments.com.au/new-apartments/alex-willow-crows-nest-82-90-alexander-street-crows-nest-nsw-2065">Alex &amp; Willow</a>. 
&nbsp; 
The buyer profile reflects the project’s broader purchaser mix. <a>Alex &amp; Willow</a> has attracted predominantly local downsizers looking to transition from larger homes without compromising on space or quality, alongside a smaller cohort of upsizers and investors drawn to the project’s location and design credentials. 
&nbsp; 
The milestone sale comes as the project, developed by&nbsp;<a href="https://www.apartments.com.au/developers/perifa">Perifa</a>&nbsp;and delivered by <a href="https://www.apartments.com.au/builders/versatile-made-construction">Versatile Construction</a>, both part of Versatile Group, reaches 60 per cent sold.

[smartcode_project:default project_id=6680 project_image_fid=371325] 
&nbsp; 
Eddie Mansour, Managing Partner of <a href="https://www.apartments.com.au/project-marketer/ray-white-projects">Ray White Projects</a>, said the result demonstrates not only a headline price but also depth of demand. 
&nbsp; 
“This is an exceptional outcome and a clear reflection of sustained buyer demand for premium, well-located downsizer product,” Mansour said.

“We’re seeing a consistent pattern of local homeowners selling family residences and reinvesting into high-quality apartments that allow them to remain within their community. Alex &amp; Willow has resonated strongly with this group because it offers genuine scale, thoughtful design and immediate proximity to the village.” 
&nbsp; 
The sale reflects a broader and consistent trend of local downsizers actively seeking high-quality, low-maintenance residences close to established village centres. Agents report that demand for this product type has remained resilient, particularly where developments offer a rare combination of scale, design quality and walkable amenity. 
&nbsp;&nbsp; 
Fabrizio Perilli, Managing Director of Perifa and Versatile Group, said the sale marks a defining moment for the project. 
&nbsp; 
“The penthouse sale is a strong endorsement of the quality we have delivered, alongside our partners, and the clear demand from local downsizers for premium, boutique residences in this location,” Perilli said.&nbsp; 
&nbsp; 
“Most importantly, we’re proud to see the Alex &amp; Willow community beginning to take shape. As we move closer to completion, we’re looking forward to welcoming residents and seeing the project come to life.”&nbsp;

[smartcode_project:default project_id=6680 project_image_fid=338516] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettleton Tribe</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>, Alex &amp; Willow is a boutique collection of generously sized two- and three-bedroom residences in the heart of Crows Nest village.&nbsp;

Completion is slated for early 2027.

[smartcode_project_cta:default project_id=6680]

Alex & Willow, Crows Nest penthouse sells off the plan for $6.5 million

Fresh from launching the first stage of its Wollongong precinct, <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, builder-developer Urban Property Group has unveiled plans for the next phase of the masterplanned community.

Now on public exhibition through the NSW Government's Housing Delivery Authority pathway is a State Significant Development Application for a further 657 homes on the prominent gateway site opposite Beaton Park.

The proposal comprises three buildings, including two build-to-sell towers rising 25 and 30 storeys, delivering 391 apartments, alongside a 12-storey co-living building with 266 residences, making it one of the largest co-living proposals currently planned in regional New South Wales.

Of the apartments proposed in the build-to-sell towers, the majority, 310, are two-bedroom dwellings. The balance comprises 44 one-bedroom apartments and 37 three-bedroom residences. Apartment sizes range from around 50 sqm for one-bedroom homes to approximately 90 sqm for three-bedroom apartments.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="19347059-1612-41a0-9c74-b86a657237f8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%2010.02.18%E2%80%AFAM.png?VersionId=sWXnaCcA.cIC6N8YT1dg5pJ2e1V3Z6z7" />

The submission says the proposal has evolved significantly from its original Housing Delivery Authority application following extensive consultation with the State Design Review Panel and Wollongong City Council.

The final scheme has been designed to align with the emerging vision for the Flinders Street Precinct, an area identified by Council as a future high-density mixed-use neighbourhood capable of accommodating substantial housing growth close to transport, employment and community infrastructure.

According to the design report prepared by COX Architecture, the development aims to "deliver a built outcome consistent with the future character of the Wollongong CBD while responding to the site's unique constraints and opportunities."

"Our vision for the next phase of the site evolution in Wollongong is grounded in three design pillars that guide the design response: place, natural environment and celebration," COX said.

"Inspired by its surroundings and grounded in the stories of place on Wodi Wodi Country, the design proposal acknowledges the established character of its setting while creating a unique and timeless identity that sits harmoniously within it.

"The design proposal responds to its specific site conditions, acknowledging the vegetation, climate, wind conditions and solar access of the site."

The architecture responds directly to the site's position between Wollongong's urban core and its natural landscape setting.

COX identified views towards Mount Keira and the Illawarra Escarpment as defining features of the site, while the upper levels of the towers will also capture expansive views across the city and out to the Pacific Ocean.

The design team has positioned the tallest buildings closer to the rail corridor, where overshadowing impacts can be better managed while establishing a landmark built form on the northern approach into the city.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="79580d5b-500c-4ebf-9629-797146a4a694" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.51.59%E2%80%AFAM.png?VersionId=WbTB1EKSG.KDfsfz0F3wp1QVa2oCMGR5" />

Urban Property Group secured the 11,000 sqm Smith Street site in 2022 and has since progressed plans for the broader Keira Place precinct.

Construction recently commenced on the first stage of Keira Place, which will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, alongside activated ground-floor retail and commercial space.

Urban Co-CEO Patrick Elias said the commencement of construction marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/groundbreaking-marks-start-of-construction-at-keira-place-in-wollongong-cbd">Groundbreaking marks start of construction at Keira Place in Wollongong CBD</a>

&nbsp;

&nbsp;

&nbsp;

Jo Chivers

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