Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Joel Robinson

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

Jo Chivers

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It's funny how a town, city or region can become labelled.
I've heard that Canberra is reserved and government orientated, the Gold Coast is Australia's crime capital, Geelong is the poor cousin of Melbourne and the Hunter Region is coal mining country with Newcastle once known as Steel City.  
Obviously, these labels can linger over many years long after change occurs. The reference to Steel City relates to the BHP steelworks that closed over 15 years ago. Newcastle is a great example of how a city can reinvent itself after a major change in economic forces takes place. 
I found a dual occupancy site in a suburb that I didn't know much about, but it was close to where one of my project managers lived. I asked him what the area was like.  Whilst I won't repeat his entire response, it did include a reference to two heads! The name of this suburb also did nothing for its image.
Our thoughts or information we gather create perceptions. These perceptions that may not always be accurate and that are usually not fully reflective of the areas.  A perception is the way in which something is regarded, understood, or interpreted.
I've heard the saying "perception is reality".  As property investors, our research process needs to look past perceptions and drill down into facts. Perceptions can change over time.
Study the economic indicators of the towns and cities you are investing in. Look at labour force, household and business factors. 
Labour force includes employment, unemployment, sectoral shifts - this will tell you if the area is going through change, if the area is following the national trend or if a sector is rising or falling.  Look for diversity within the industries that are employing locally.
Knowing the unemployment rate and trend is important and compare it with the state and national figures.
Find out what industries are the biggest employers, look at the actual figures then compare it you with the perceptions. For instance  many assume mining would be one of the highest employers in the Hunter Region of NSW but it is ranked seventh, according to the Australian Bureau of Statistics' Monthly Labour Force Survey.
The number one employment segment is actually health care and social assistance.
This brings me to an interesting article I read about people being the drivers of our future economic growth. <a href="https://blog.id.com.au/2014/economy/people-the-new-drivers-of-economic-growth/" target="_blank">The article on .id</a> talks about: "Human Capital...the store of knowledge, skills, talents, experience, wisdom and intellectual attributes that we all contain in our heads."
"Sectors that rely heavily on human capital, as a means of production, are the emerging sources of jobs and growth in domestic product. Health care and social assistance, education and training, professional, scientific and technical services, finance and insurance services, and information media and telecommunications, now account for one in three jobs."
Looking at the list above, I crossed checked it with the highest ranked employers in the Hunter Region and two sectors; health care and social assistance and education and training were in the top five.  This was heartening.
With mining ranked seventh, I'm not letting perception get in the way of our property developments. I'm looking more to the new and expanding hospitals and retirement villages that have been recently been announced. Those nurses and doctors, staff and patients families are all going to need to live somewhere. 
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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jochivers-wq5Bp59R5a

Property investors need to look beyond perceptions

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Our clients Lorraine and Steven live in Sydney and are active property investors.
Both are very busy professionals with a young family. Steven is a medical specialist and on call all hours of the night and Lorraine a solicitor with a young toddler. 
We located a dual occupancy site for them in the City of Maitland in the Lower Hunter Region of NSW.  The official population of Maitland City as of the 30 June 2013, is 73,447. It has grown <a href="https://profile.id.com.au/maitland/population-estimate" target="_blank">by 2.16% over the past year</a>. 
<img src="/images/2014/11/14/IMG_3845.JPG" alt="">
Maitland City is a solid area to develop in as we've been working there for over nine years and seen the population steadily rising and announcements of large infrastructure projects mean there is good investment being made by the government. NSW Planning have Maitland's annual growth rate projected to be the highest in metropolitan areas outside of Sydney.
As part of our research process, after pinpointing a city or town to develop in, we then drill down into suburb data. We look at median price history and trends and availability of land and housing. Our research with local agents confirms the type of housing in demand and we check for low vacancy rates. We then look for development site locations that are close to infrastructure such as good schools, shopping centres, public transport and quick access to Newcastle and to the M1 to Sydney.
<img src="/images/2014/11/14/IMG_3840.JPG" alt="">
We were offered Lorraine and Steven's development site off market through one of our land developers and quickly moved to secure it for our clients. The dual occupancy project was completed within 12 months of settlement on the land.
Here are the details:
<ul>
<li>890 square metre development site; land cost: $210,000 </li>
<li>Stamp duty &amp; legal costs: $2,285 </li>
<li>
($5,000 <a href="https://www.osr.nsw.gov.au/lib/doc/factsheets/ofs_nhg1.pdf" target="_blank" style="line-height: 1.3em;">NSW New Home Grant</a> applied. The government contributes $5,000 to offset stamp duty) 
</li>
<li>Construction cost for two freestanding, three bedroom, two bathroom, DLUG villas, includes Torrens title subdivision all design and council fees and charges: $460,627 </li>
<li>Total cost: $672,912 </li>
<li>The villas were valued on completion of the project at: $390,000 each. Total end values for both villas: $780,000. </li>
<li>Equity created: $107,782 
</li>
<li>
Gross yield after villas were rented at $400 per week each: 6.2% 
</li>
</ul>
<img src="/images/2014/11/14/IMG_3807.JPG" alt="">
If you are borrowing at around 4.5% then a development project like this may be cash flow positive for you. This is when the rent and depreciation benefits combined cover the costs of interest, insurance, council, water rates and management fees.
The other big benefit on a dual occupancy project is the depreciation benefits. On the above case study depreciation came in around $21,000 year one (using the diminishing method).
<img src="/images/2014/11/14/IMG_3780.JPG" alt="">
What Lorraine and Steven got out of using our service is the experience of being a property developer without having to deal with all the fine details and issues. Our weekly update reports act as a handy reference guide for clients to use when/if they have time to manage their next project themselves. Our role is to bring in the projects as quickly and efficiently as possible. Our long standing relationships with builders and contractors, land developers and agents allow us to pass on discounts and exclusive offers to our clients.
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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How a dual occupancy development can work out cash positive: A real life case study

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We just finished a great little duplex project for a client. The site was in an older suburb and had a derelict house on it and it came with some challenges.

When you are looking at a knockdown, it's important to factor in a few things. One of the biggest of course is the demolition costs.  These can range dramatically in cost.

As we had time whilst waiting for the DA to be processed, I ended up getting no less than seven quotes. The old house was full of asbestos of course so that was factored into each quote and there was a big garage slab to be removed.

The highest quote I got was $22,000 and the lowest was $13,000. This was a contractor who actually recycled a lot of the materials, on selling them and was therefore cheaper.  

[smartcode_project:default project_id=3783]

Lesson number one, it is worth the efforts of getting lots of quotes.

The cost of the site was $160,000 (negotiated down from $180,000) plus demolition costs bought it up to $173,000. This was a nice big 876 square metre block of land located close to the school and a good price to pay for a dual occupancy site. It had a 20 metre frontage but there was no kerb and guttering to the front of the house, just a gravel shoulder. 

The site had a slight fall to the rear and we planned to build up the site to drain to the street. But council had other ideas and one of the conditions of our DA consent was to drain to the rear where there was a gravel laneway.

The problem was that there were no drains in the laneway and we had to install a dish drain to direct the water to the nearest cross street, which was pretty ridiculous considering there was no drain there either.

Lesson number two, look for land that has establish drainage in the street, preferably with kerb and guttering.  

The next hurdle we found building in an old suburb was the water and sewer infrastructure was aged.

We were asked to install a new water service which included boring under the road to pick up the main for the water service and install a new junction as per the minor works contract issued by the local water board.

This added about $7,000 to the development costs effectively wiping out most of our $9,000 saving on the house demolition.  

Lesson number three, make allowances for infrastructure upgrades. These are not required in new land estates.

The good news for this development was that the villas were in high demand, being in an older suburb where there was very little new housing. Typical dwellings consisted of 80 year old miners cottages with a sprinkling of 1950s brick homes.

All through the construction phase I had people phoning me wanting to rent them or buy them. Our client was building to hold and so as we neared completion, I was able to have both villas leased for our client before handover.

We have a great relationship with our builder and they allow us to hold open houses and show through prospects before handover which is invaluable and means cashflow from the moment the final builder's drawdown is paid.

This little duplex project ended up costing $570,000 including land and construction costs to build two three-bedroom attached villas (a duplex).  Both were rented for $350 per week, giving a gross yield of 6.4%.  There was some equity created as well with the villas worth about $320,000 each.

There are advantages and disadvantages of a knock down rebuild project. It's important to get the land cheap enough to compensate for any additional issues that may arise due to the older area.

<img alt="" src="/images/2014/10/31/chivers%20oct%2031%20one.png">

<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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Three lessons from a knock down rebuild project

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I found a great property development site a few weeks ago.  It was a three bed house on over 1,000 square metres of land. Whilst this type of property is considered fairly common in this Hunter Region town, there were a few major plusses to the site.
<ol>
<li>Zoning. It was zoned for medium density development - you can build several dwellings on the land as long as you comply with the development control plan (DCP).  Most properties in this town are zoned low density which means we could only build one other dwelling if keeping the house. The house is not really a knock down. </li>
<li>Location. This property is right behind the shops and about 200 metres to the local school. You can walk to the new Coles or Aldi stores. Tenants love this as they may not even need a car, this will appeal to older, downsizers wanting to be close to facilities and young families wanting their kids to be able to walk to school. </li>
<li>Land size and fall. The land is relatively flat and the position of the house is right at the front of the block. The rear yard is large enough to build a duplex in it. </li>
<li>The house is old but in fairly good condition. We could rent it out immediately and still get a 6% gross yield or renovate it and get a higher return. </li>
<li>There is a rear laneway at the back of the property.</li>
</ol>
My initial development strategy was to keep the house and build a duplex - two attached two bedroom single story villas and a three lot subdivision, and the zoning allow this.
After my inspection of the house, I opened the back door to the yard and immediately loved the space, it seemed near perfect for our development strategy. I paced out the area and knew a duplex would fit, we'd need to allow for a driveway to access the duplex from the front road as council do not (usually) allow us to use the rear laneways for direct vehicle access. The laneways are nothing more than dirt tracks with no drainage. They were originally used for 'dunny runs'.
I opened the rear boundary fence gate to check the laneway and that's when I became more than excited.
What I saw was a perfectly sealed road with kerb and guttering that lead to a drain at the next cross road.  Whilst it was still a 'laneway' and there was no street name sign, it appeared to be used for deliveries to the shops and council had upgraded it substantially. I did find a property that appeared to have only vehicle access to it. Ah ha, precedence! 
By now my mind is racing...what if we were able to use this laneway for our duplex access? We'd certainly have more options to play with:
<ol>
<li>Face the duplex to the laneway. We could also upgrade it to a three bedroom duplex and save on the long, expensive driveway. </li>
<li>Torrens title subdivide the duplex from the older house, basically cutting the land in half so each dwelling has a little over 500 square metres each. </li>
<li>Renovate and upgrade the older house and it would be worth about the same that we paid for it on the larger land size. Essentially getting the land at the back for free. </li>
<li>Or, demolish the house and build another two villas - a duplex facing the street, effectively making this a four unit project. I really liked this one. </li>
<li>For a client on a low budget, we could simply cosmetically renovate the house and build a granny flat that could be relocated in the future so that the site could be used to its full development potential. This is what we call a stepping stone strategy.</li>
</ol>
We loves this type of development site as it offers so many options to our clients and the house will provide some cash flow during the development phase. These sites are about as rare as hens teeth and so we get a big buzz out of finding them.
Our clients who have taken this site, completed a three unit development with Property Bloom earlier in the year and have come back for more. Their plan is to get as many developments under their belt before starting a family. They are both in well paid jobs and can take advantage of the depreciation benefits.
Our challenge now is to see if we can convince council to allow us direct vehicle access to the laneway. Our back up plan is to run the driveway to the front street as this will still work, but our goal is to optimise this development.
Watch this space and I'll let you know how we go.
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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Exploring all options of a development site

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When you are developing property, finding actual comparable sales references in the same market that you will build is extremely important. 
You need to estimate what your dwellings will be worth on completion of your project.
You can find sales references on most of the real estate websites in the 'sold' area. You can also order sales reports from Residex or RP Data and various other providers which are more accurate.  
House and land packages are advertised readily.  If you are building near or within a land release estate then you are bound to come across them.  
I'm often asked if a house and land package price can be used as a sales reference for a finished home. The answer is no.
A house and land package, of course contains two components; land and construction costs. When you purchase a house and land package from a builder/developer, you do not pay the entire cost upfront. The builder or developer would have secured the land and you will usually pay for the land directly.  So the registered sale price associated with that lot will be what you paid for the land and not the entire price of the package.
Financing for a house and land package usually consists of two steps: a loan for the land then a construction loan.  
The loans for land and build costs can be arranged separately, but may also be bundled together.
As part of your due diligence on a house and land package, you must carefully check the inclusions and exclusions of the builder's contract.  Commonly, some site works are NOT included and you may need to add these to the price you've been quoted. Typically retaining walls can be excluded, importing or exporting of soil to prepare the site may be excluded or listed as a 'provisional cost'. This means an allowance has been made but if it costs more, a variation will be raised. If it costs less than the allowance, then you may get a credit (which is always nice).
Be wary of 'turnkey packages'.   A turnkey package should include everything so that you can move right in or sell or lease the property as completed including carpet, blinds, landscaping, driveways, letterbox and all fittings and fixtures. 
A  quick search in one of the suburbs Property Bloom develops in comes up with this advertisement:
Headline:  "FIXED PRICE TURN KEY PACKAGE!!  Fixed price package gives peace of mind with no hidden extras."
Below the headline was a computer generated image of a house.  Then following this was a disclaimer:
DISCLAIMER All facades, floor plans, dimensions and illustrations are indicative only. The finishes and inclusions nominated are to be used as a guide only and purchaser is advised to refer to the land contract and builders contract for accurate dimensions, specifications and inclusions. We reserve the right to alter the plans
What you are getting for you money or the exact house and land package will be detailed in the sales contract and builder's contract. It's imperative that you review this in detail to understand the inclusions and more importantly, the exclusions.
A house and land package can be advertised at a low price point to attract attention. Whilst you can use it as an indication as the builder/developer is basically saying this is the actual cost of a house in this suburb, it is by no means indicating the actual cost or value. 
If it's a good location, you can expect that the value may be higher. Always budget for a higher cost to cover excluded items and any upgrades or changes you'd like to make.
A house and land package price is not a sales reference, however it can be looked at as a lower estimate of the end value. In a good location and in a good market, if a sale occurs of a completed house and land package, that the vendor would be seeking a higher price than what it cost them to build.
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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Are house and land package prices considered sales references?

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This week we've been designing new duplexes to build in a more upmarket location.
We've been studying floor plans with our builder and their draftswoman. The villas are three bedroom, master with en suite and main bathroom, separate living room open plan kitchen, dining and living space with alfresco dining under the roof.
I'm excited about our plans as I think we've managed to design in all the essentials and a few luxuries and we replaced what was originally a second linen press with a built in cabinetry study nook to complete our new plan. There was already a full size laundry with storage and another linen cupboard, each bedroom has built-in robes and the master with a walk-in-robe, there was plenty of storage, which tenants love.
But one area we were not sure about was whether we should separate the toilet from the main bathroom?
A separate toilet compartment can be the ultimate in privacy but it may also seem a little confined or closed in.  We had a generous space already for the main bathroom but when we looked at combining the toilet in this space, we would have a more luxurious area to work with.
We ended up including the loo in the main bathroom and adding a privacy panel to give the sense of separation and hide the toilet as you entered. This gave scope to upgrade our bath to a larger size.
One client asked if we should use an in-wall cistern for the toilet to make it even sleeker but I was dead against that idea. Whilst it can look very stylish, these villas are to be used as rental properties and if there is a repair required on an in-wall system, it can be very expensive to fix.
Another conversation we had was whether to include a double bowl to the 1,200mm wide wall hung vanity in the main bathroom.  I tend to like more surface area that a single sink gives and the extra storage opposed to a double basin (that takes up some of the storage space) but this is a personal choice. The villas are three bedrooms and likely to lease to young families, so kids lining up at one sink to clean their teeth may be an issue. 
We switched our attention to the external façades to ensure that even though the villas are attached and part of a duplex, they still look different. We did this by separating the garages so each villa will have its own driveway and the front entrances and windows are different. We've used gables to the roof line on one side and used texture to differentiate them.
The main building is face brick but on one side will have some weather board cladding. On the other side we'll use a coated brick finish to give another dimension to the texture. One side has brick pillars to the entrance and the other side has painted timber posts. Each front door is a different design as are the windows on the front façade. 
Finally, we will use a different landscape design to the front of each villa to finish our individual look. The last thing we want is for the duplex to look 'mirror' image (which is so 1980s).
Spending time on creating some great designs is fun, but it also very important that we build the right dwellings to suit their environment.
In this case we think we've hit the nail on the head.
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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The elements that create a great duplex design

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During our project management we find that there is quite a large variation in the amount of time required at each stage of the property development process.
I thought I'd share with you a brief overview of each phase of a development and indicate the time needed. 
<ul>
<li>
Site selection 
</li>
</ul>
This can be very time consuming looking at different sites and running feasibilities on each of them. Once you find a good site, then there is no time to waste in securing it and taking it off the market.
Firm and professional negotiation is needed and you should manage the agent during this stage. Make sure they've raised the sales advise quickly and contracts are received and reviewed by your solicitor.  Request terms such as a longer settlement period and permission to lodge your development application (DA) during this time. 
You may be able to purchase under an option agreement which can literally buy you time but discuss this in detail with your solicitor so you understand how it works. We don't normally use an option to buy as land developers and vendors mostly want to see a firm purchases.
Good sites will sell quickly to others and sometime more complicated purchasing strategies can kill a deal. Once you have an offer accepted, be ready to move to exchange on the land quickly.
<ul>
<li>Design and Development Application preparation</li>
</ul>
Again, time is of the essence as you want to get as much work done before you settle on the land and interest holding costs start kicking in. Work closely with your architect so that they can finalise designs fast.
<ul>
<li>DA processing </li>
</ul>
This is a chance to take a deep breath, regroup and begin to set your focus on the construction phase.  Whilst you'll have a few weeks up your sleeve here, you still need to stay in touch with the town planner assigned to your DA but don't be too pushy. Make sure that if council does request more details, you provide them very quickly as the processing 'clock' will stop while they are waiting on your response.
<ul>
<li>
Construction Certificate 
</li>
</ul>
Using a private certifier to approve construction certificate plans and issue occupation certificates can save you valuable time compared to leaving it all with council.
<ul>
<li>
Unconditional construction finance 
</li>
</ul>
Move like a speeding bullet to get the consents and stamped plans to your finance broker/bank along with the personal information and documents they will need to finalise your construction loan and give you unconditional approval.
Time can be wasted in this phase with banks waiting on necessary docs or not being given all the information they need. Chase the bank for the Letter to Commence construction that your builder needs before they can commence work.
<ul>
<li>
Building phase 
</li>
</ul>
An efficient builder, they will generally spend a couple of weeks after receiving the letter to commence from your bank, preparing your site file which involves placing orders with their suppliers and allocating resources for your project. This is important planning time for the builder so when construction starts, there is no waiting around for delivery of materials to site.  Ask for a date that your site will be cut and be available to attend.
The site preparation phase is where some issues can arise and you'll need to be aware and give direction to your builder.  As the build phase continues, work closely with the site supervisor and provide any details or deal with any issues as they arise.
Property Bloom spends a lot of time with our builder supporting them and to ensure a smooth process. We hold a weekly work-in-progress meeting and inspect each site once a week or more depending on the complexity of the stage we are in. 
<ul>
<li>
Final inspections and Occupation Certificate 
</li>
</ul>
It's important to spend the time here ensuring you are happy with the finishes, booking in the final certifier inspections and making sure they have all the documentation they require to issue final approvals.   
Manage your bank so that the builder's final account is paid quickly (after you are happy all works are complete).  We have a system where we are able to start our tenant procurement during the practical completion and Handover period so that as soon as the occupation certificates are issued, approved tenants can move in.
This phase can draw out with the bank needing to send a valuer to ensure the project is complete before they release funds. If the valuer cannot get access or in touch with he builder then there are delays. The builder will not handover the keys until the final payment is in their account.
It's really a full time job project managing the ebbs and flow of a development project.  It's not always a race against the clock but a balance between spending the right amount of time to ensure nothing is missed and of course, to enjoy the journey. 
As Gold Meir once said: "I must govern the clock, not be governed by it."
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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The property development process: How much time does each stage take?

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I set off at 6.15am this morning for my development site inspections. It's a two hour drive from Sydney to the Hunter Region where Property Bloom develops property for our clients. 
After my first four inspections I stopped to eat my packed lunch and found myself reflecting on just how lucky I was. I didn't feel like I was working, not like the way I worked all through my 20s and  30s. That was fierce, career ladder climbing type of work where you had to continually be proving yourself and dealing with office politics. Very stressful but that's what we had been taught to do. Work hard and earn your success.  
Since starting my own property development project management service over 12 years ago, I have actually been living my dream. I do what I love and it's flexible for my family. But it wasn't all beer and skittles. There is the unknown you need to contest with when starting your own business. Forget about the safety net of a salary, no holiday pay and no superannuation contributions covered by others. You are literally on your own and it's sink or swim.
My personal motivation to make it work was my kids and our future. I didn't want to be in a situation like my parents with no savings and relying on the government pension to live. It's sad to work hard all your life and then be at the mercy of others.
My goal is to build enough wealth to support my family, have a bloody good time doing so and retire young. But, as I'm doing what I love, retirement is not going to be any time soon.
Over time, I've developed a system that means my business can run efficiently without my daily direction because I have built up trustworthy relationships and have great staff.  I am focussed on refining our property development process and to become more and more efficient in our development management.
Today during an interview with a well regarded, national financial newspaper I was asked - "why develop property?"
"Why wouldn't you?" is what I wanted to say, but then I remembered that whilst most property investors understand that buy and hold is a good idea, to buy, add value and hold is an even better investment strategy. Adding value doesn't have to mean spending money immediately.
I explained to the journalist that as a starting point, be mindful that when you buy an investment, look for property that can be developed either now or down the track. You may find two properties with similar price points but one could have superior development potential. It might have a larger land component, it may have subdivision potential, it may have opportunity to improve the floor plan within the same area and it may have some good growth potential based on future government plans, infrastructure upgrades and potential policy changes. 
Developing property just makes sense. There are so many different development strategies you can use and that's the fun bit, working out what the best strategy is for you. 
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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Why every investor should consider property development

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This week is full of announcements from some big Australian companies. Things are changing.
Two announcements come from BHP Billiton and AGL and both will have a big impact on the Hunter Region of NSW. Hopefully a positive change that will strengthen the local economies and translate to the housing market.
As you all know, property is my number one choice of investment strategy. In contrast, my share market investment experience is pretty limited. In fact, I can nail it down to two things; watching what my managed superannuation fund does and sitting around a table with a group of girlfriends drinking wine and having a little bit of input into the allocation of my investments in our Kash Kow funds.
The Kash Kows was formed about 10 years ago when a few women decided we should build our investments and have a bit of fun trying to figure out how the stock market works. We all throw in $25 per month then when there is enough money in the kitty, make some (usually) dodgy decisions on what we buy. We do try and get in 'guest speakers' ply them with alcohol and nibblies then hit them up for a tip. Other times we will actually do some real  research to work out what company to invest in. We started as 'share traders' which quickly turned to 'share investors' when none of us had time to watch the daily fluctuations of the share market and actually do the trades.
Luckily for us we had purchased BHP long ago at about $12 a share. While I can safely say we are nowhere near their major shareholders, I do take an active interest in what BHP do, particularly in the Hunter.
'BHP's demerger sees it keep it's Hunter Valley coal mines' read one headline that caught my eye this week.  With the big company deciding to split their interests and assets into two, I wondered what was their criteria in choosing which would stay with BHP and which would be 'spun out'.
Recently BHP was able to boost exports and cut costs sufficiently to overcome the slide in commodity prices. Its current share price is reflecting this. So are the vacancy rates in <a href="/news">Muswellbrook </a>and <a href="/news">Singleton</a>. Cutting costs meant letting go of contractors and downsizing some divisions.  However productivity so it seems, has never been so good.
I read it's the first time in three years that BHP has improved profits year-on-year. This has been achieved despite prices for some of BHP’s most important commodities – particularly iron ore and copper – trending lower during the 2014 financial year.  They seemed to have ramped up their volume in coal.
BHP has said it would include its Illawarra metallurgical coal business in NSW in the demerged group, but would be hanging on to its thermal coal assets in the state’s Hunter Valley. Metallurgical coal is less abundant than thermal coal and is primarily used in the production of coke, which is an important part of the integrated steel mill process. 
“In a single step, we will significantly increase BHP Billiton’s focus on the exceptionally large resource basins that underpin its competitive advantage. As we move towards a simpler portfolio, comprised of our pillars of Iron Ore, Copper, Coal, Petroleum and potentially Potash, we will become a higher-margin, higher-return business..." said BHP Billiton Chief Executive Officer Andrew Mackenzie.
My interpretation of this change is a sign of confidence from the company in the coal mines of the Hunter Valley.
The other big 'change' announcement this week was the AGL and Macquarie Generation (MacGen) owned by the NSW State Government acquisition. The deal covers the Bayswater and Liddell power stations near Muswellbrook, the Liddell solar farm, the Hunter Valley gas turbine near Liddell, the development site ‘‘Bayswater B’’ for a new base load power station four kilometres west of Bayswater, and the Tomago generation development.
From the proceeds, about $700 million is expected to go into the government infrastructure fund Restart NSW to fund high priority future infrastructure projects across NSW like schools, rail, roads and hospitals. The <a href="https://www.hunterinfrastructure.nsw.gov.au/About.aspx" target="_blank">Hunter Infrastructure &amp; Investment Fund</a> will benefit from this.
AGL says there are many strategic benefits to this purchase and plans to spend $405 million over four years on revised maintenance and upgrades at its Liddell and Bayswater plants.
Hopefully this change and investment will also trickle down into the local economies.
And so I ponder on these two large change projects and have to agree with George Bernard Shaw that "Progress is impossible without change".
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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Change is coming to the Hunter Valley

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If you are thinking of developing property then you will need to have a good understanding of construction finance.
As property developers, most of our clients like to highly gear their lending. That means, using as much funding from others to pay the builder rather than use their own cash reserves.
However, you may like to use a line of credit (LOC) set up against another property and/or cash on hand to fund your development. It will depend on your own situation and strategy.
You will require some cash to put into the deal of course for deposits on the land purchase and on the construction loan.  The loan to value ratio (LVR) will vary from lender to lender from just 50% up to 95% with lender's mortgage insurance (LMI).
What Is a Construction Loan?
A construction loan is specifically intended to be used to pay for the construction of new dwellings. The loan will be finalised once you have provided your lender with a number of documents including the DA consent for your project, the construction certificate, council stamped plans and your signed builder's contract.
If you are not sure who to use for construction lending, a good starting point is a mortgage broker. They will look at your individual situation and advise the right lender for you. 
However, make sure you do your finance due diligence before you buy the land/property you intend to develop. It's important the lender you use to finance the purchase of the land/initial property also offers construction loans as not all lenders do. You can brief your broker to only present lenders who offer construction loans.  Early identification of any issues that may impact on your lending, will mean a smoother process once your development application is approved.
Understanding the process
In the builder's contract there will be a draw down schedule. Some banks will accept this and others may ask for it to be changed to suit their policy.  Once your lender gives you unconditional finance approval, they will send a letter to the builder authorising the commencement of construction work.
The first drawdown or payment to your bank will be required after the slab or slabs are laid.  
The second due after frames and trusses are erected.
The third is typically due after brickwork, windows and roof coverings are completed.
The fourth payment will be paid after the internal linings (insulation, plasterboard or internal concrete walls, ceilings) and timber mould out or fit out. This includes timber architraves, skirtings and doors. This can be known also as 'lock up' stage.
The last payment is due after a practical completion inspection is done and you are happy the builder has completed all (but some minor touch ups which they usually have seven days to complete). Your bank will send a valuer out to check that all works have been completed before they pay the final payment to your bank.
At Property Bloom, our role is to ensure the builder meets these milestones before we instruct our client to authorize all payments. We also oversee any credits that may be due to our clients and variations that may be required. It's important property developers do hold a contingency fund for any unforeseen works that may be required that aren't included in the builder's contract. For example, rock excavation is almost always an excluded item and mostly cannot be determined until the site works commence.
It is also possible for you to take out a construction loan for the renovation of your existing home or an investment property. However, the process of applying for a construction loan for renovations may differ to that of construction lending on new dwellings, so be sure to check this with your lender.
What do you need to submit in your application for construction lending?
The more you understand what banks are looking for before you apply for a construction loan, the better this can play out for your development and make the processes as smooth as possible.
We've had some situations where the bank has taken literally six months to process and finalise a construction loan. This is not good for property developers because our main goal is to complete our project as quickly and efficiently as possible. If you are waiting this long before you can start to build, then holding costs can eat into your profit. Here's <a href="https://www.mortgagechoice.com.au/media/2590560/Construction-loans.pdf">a good overview</a> on what you will need to have ready to submit to your lender to ensure a successful loan application as well as required repayments.
Being financially prepared is just as important for property developers as doing your due diligence on the right location for your development and using the right builder.
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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Jo Chivers

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