DA AND SALE
This approach is as per our initial proposal and involves arranging the architectural plans to be drawn up, lodged with the council and then selling your property with a permit attached.
Below we break down the costs to give you an indication of how this option looks.
$2M = $40,000; $2.5M = $50,000; $3M = $60,000; $3.5M = $70,000; $4M = $80,000
Here we break down this option and provide feedback on the good and not so good.
Provides clarity to prospective builders and developers
Saves developers time by not having to go through the process
Helps buyers visualise what can be achieved on the site
We’ve taken on the risk, which means there’s no risk for any prospective buyer
The property would achieve a higher sale price.
Additional costs associated with design and lodgement of DA
Developers generally don’t like to purchase properties where there is an approved DA attached. They prefer to manage the design process as they have their own style and key indicators to work towards. This would then mean we are reducing our target audience
The lead time of 71 weeks could affect the sale price as the market is cooling
Uncertainty at final sale price by going to auction
The cost for the DA is outlaid and the property may not sell
Current regulation changes mean the number of units that could be squeezed onto the site is reduced
The risk of unforeseen additional fees during the DA process
Reference the case study for 31 The Avenue, Balaclava. What is your appetite for risk to proceed with a DA in a cooling market?
This is the obvious option in this situation and will most likely - but certainly not guaranteed - produce a great result. However, when we weigh up the timings and cash outlay vs. the other two options, we believe you would be better suited to look past this option in the short term. As you will see in our recommendations with the other two options, we prefer to sell directly to the developer.
If we are unsuccessful in selling the property through our network, then we would recommend engaging an agent and selling directly to their network of developers and builders. Again, if this is unsuccessful, then we would recommend this option as the plan B.
* Milk Chocolate price data used on this website is sourced and relies upon information supplied by a number of external sources (including governmental authorities). This data is supplied on the basis that while Milk Chocolate believes all the information provided will be correct at the time of writing, it does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by you, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information on this website through any cause whatsoever and limits any liability it may have to the amount paid to the external sources for the supply of such information.