DUPLEX ACQUISITION
What's involved behind the scenes
It's no secret that Australia’s most successful property investors have not used the typical buy and hold approach to build their wealth. They understand that significant wealth creation is done by adding value to their holdings to speed up their results.
Our duplex development strategy adopts the same approach. That is, by finding opportunities that are under market value, that you can add value to by doing small developments. On completion, you then have options to allow your portfolio to keep moving forward. You can sell one, you can keep one, You can sell both, or you can keep both. The key with this strategy is that you have options, so that you do not become stuck, like your typical retail investor.
This page details what is involved behind the scenes when it comes to duplex development, and will help you make the decision as to whether or not this strategy is for you or not.
TEAM NEEDED TO BRING A DEVELOPMENT DEAL TO LIFE
When it comes to development, unfortunately there is no one size fits all approach. That is, a development site is not a standard acquisition. There are many many moving parts that all need to come together in order for the development to become feasible. The process is a lot more complex and in depth than a simple acquisition.
- The process is longer
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The man hours are longer
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The research is longer
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The negotiation is longer
However, we you get the formula right on this type of development, the results can be very fruitful and really kickstart and grow a property portfolio.
Acquisition Phase
- Negotiate land developer approval
- Check land contract
- Check 88B
- Pre lodgements meeting council
- Town planning advice (DCP & LEP)
- Prelim Design
- Sundial calculator
- Prelim siting plan
- Negotiate build contract (terms, fixtures & finishings)
- Confirm Feaso (site conditions, costs & profits)
- Write research report
- Make land Acquisition
- Make building Acquisition
Land Settlement/Pre lodgement phase
- Support finance teams
- Access to site VALS
- Support land settlements
- Provide solicitor letters confirming settlement to builder to start pre lodgement
- Provide finance approvals to builder to start pre lodgement
- Access to sites soil tests
- Engage Surveyor for site Survey
- Engage Engineer for Soil Tests
- Engage Architect for working drawings
- Engage engineers for foundation design
Approval Phase
- Arrange payments of all required lodgement fees
- Respond to council requests
- Amend floor plans and designs as per council requests
- Energy Australia Natural Gas Forms
- Private Certifier Form
- Letter regarding NBN connection of 2nd unit – advise us if you wish for application to be lodged;
- Letter of Authority Consent Form - This is to allow (Town Planner) to act on your behalf.
- Lodge plans to Council for Development Approval
- Council Public Notification Period
- Council Initial Assessment Period
- Council Development Approval Assessment started (approx. 60-90 days)
- Respond to council requests
- Amend floor plans and designs as per council requests
- DA Approval Received
- Engaging the Private Building Certifier
- Minor Works to be undertaken by Plumber to obtain Section 50 Certificate.
- Lodge plans to Council for Driveway Approval
- Documents to Private Certifier for Construction Certificate process (4/6 weeks)
- Terms of Easement Prepared Council
- Building Insurances
- Home Warranty Insurance prepared
- Building Approval Received from Certifier
- Confirm full working drawing and construction plans
Construction Phase
- Support finance for construction drawdowns and ACC letters
- Base Stage of Construction invoice and photos
- Frame stage invoice and photos
- Enclosed /Lock up invoice and photo
- Fixing invoice and photo
- Refer clients to Rental & Sale Agents
- Refer client to defects reports
- Refer client to insurance brokers
- Refer client for depreciation schedules
- Practical completion invoice and photos
- Handover inspection
- Ensure all defects are rectified
- Ensure property managers have been arranged access and keys
After Handover Phase
- Order Unit Entitlement Valuations if Strata Title
- Support clients through Strata & Torrens subdivision process, including their banks participation
- Submit documents to council for separate title subdivision
- Ensure separate title is created and copy title deeds sent to client, original sent to bank if there’s a mortgage in place
- Support client to order new valuations for refinance profit
- Support client with PMs or sales agents
Recent Client Duplex Acquisitions
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Duplex Project Client Results - SOLD Projects
Caifu Property will never tell you to sell any property, as this is a personal decision that you will need to make based on your personal circumstances. The reality is that duplex development gives you options!
Duplex Project Client Results - HELD Projects
As soon as the project has completed and you have carried out the sub-division, you can now order a valuation to the property revalued. You can then use this increased Equity that has been created to roll into your next project and keep building up your development pipeline.
PLAN FOR THE WORST HOPE FOR THE BEST
When we conduct our research and due diligence on any possible acquisition, we do our analysis based on the facts, not cash for comment or a future hoped for return.
We look at what properties are worth today, based on today's comparable sales and appraisals. Anything above that is considered to be a bonus.
Northlakes Estate - Cameron Park - NSW
Duplex Snapshot
THE DUPLEX ACQUISITION FEE
As you can see, there is not only a significant amount of research and due diligence that goes into duplex development, but also a lot of resources and time to make this all possible.
As an Automatic Equity Client, you get to see what duplex projects we are working on so that you know exactly what you are looking at investing in before you are required to make the decision to pay the duplex acquisition fee, or not.
$5,000 per duplex acquisition
If you’re an existing client looking add a duplex to your portfolio, please reach out to your Property Coach.
If you’re looking to join the automatic equity program, please follow the below link to chat further