Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

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"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

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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