Development Made Simple Danielle Davison, Davison Advisory June - - PowerPoint PPT Presentation

Development Made Simple

Danielle Davison, Davison Advisory June 2020

• Client-side development

manager >19 years

• Projects >$3BN in project TDV
• International/local residential,
• ffice, retail, land and

industrial experience

• Learnt from some of the best
• Made plenty mistakes along

the way –& learnt from them

Why am I here, what do I know?

Why are you here?

• You’re a development manager,
• You work with development managers,
• You may one day be a development manager,
• Understanding development could benefit your work,
• You’ve been forced to do this course…

What are yo you hopi ping to to g get t out t of f th the session?

Focus on Built Form

Built environment refers to the human-made environment that provides the setting for human activity, ranging in scale from buildings to parks. It has been defined as "the human- made space in which people live, work, and recreate on a day- to-day basis.” It’ t’s i important nt to to g get et it r t right… t….so wh why d y do s so m many y get i et it t wr wrong?

Rule 1 (of 1): Nothing else matters if you can’t sell it

Don’t le let sale sales an and d mar arketin ing be an an af aftertho hought ht

What we will cover (2 days):

• Acquisition of a site
• Developer contracting types
• Site identification and site constraints
• Demographics
• Who/why/where?
• Planning
• Process for approvals
• Planning framework
• Stakeholders
• Developing the site
• Consultant teams
• Process for approvals
• Roles of the DM vs. PM
• Project goes live
• Getting to site
• Running cashflows
• Project completion
• Product design
• What makes good design
• Feasibility creation and interpretation
• Hurdles and sensitivities
• Sales & Marketing
• Sales - planning
• Marketing process
• Customer relationship

Day 1: Acquisition, Planning, Design & Build

1. Contracting Types 2. Site Characteristics 3. Site Constraints 4. Demographics 5. Planning framework 6. Post site acquisition 7. Stakeholder mgt 8. Project goes live 9. Project completion, handover & inspections

• 10. Building Occupation
• 11. Product Design

• 1. Contracting Types

Developer models & funding structures

• Joint Venture
• Development Management Agreement
• Single Entity
• Syndicated Model
• Determines how are profits distributed and who contributes what
• Distributions / Waterfall
• Injections

Why do we need to know this first?

• Contract to purchase (going concern/full GST)
• Taxation implications (margin scheme registered)
• Entity must be right

?

• 2. Site Characteristics (Selection)

What makes a ‘good’ site?

Site Characteristics

Site characteristics – controls

• Interpreting the TPS or LPS
• Understanding plot ratio
• Plot ratio bonus’
• Permitted uses
• Car parking
• Public art policy
• Developer contributions
• Special areas

Proble blem m – wher ere h e hei eight d t does esn't = = plo lot r t rati tio

Site Selection

Setting the inputs:

• Understand your demographic (later)
• Yield
• Mix
• Size

Rough Calcs: Watch out for the sensitivity of this….

One site : three ways

Changing mix + Changing apartment sizes = Big change in yield

Site Constraints

• What are they?
• Height, plot ratio, setbacks, density, permitted uses
• Infrastructure – serviceability, power lines, easements
• Environmental, contamination, remediation, flora & fauna
• Heritage, and cultural
• Ownership – fragmented
• Topography and ground conditions (material and groundwater)
• Resident and community opposition
• Risks & Due Diligence
• Geotech
• Servicing advice

Big ticket items – Heritage, Infrastructure, Environmental

• 3. Site Constraints

• 4. Demographics

If YOU don’t know who your buyer is – how can you sell THEM what they want?

• Downsizers (couples, divorcees, empty nesters)
• Right sizers (couples, divorcees, cling-on kids)
• DINKS (couples, professionals)
• SINKS (single professionals, key workers)
• Investors (yield based, amenity seeking)
• Students

Que uestion: What What kind d of lo locat atio ions would uld you u expect to se see var various us de demograp aphi hics?

Demographic Priorities

Downsizers & Right-sizers

• Priorities
• Lock and leave
• Storage
• Spare bed for the grandkids
• Low Maintenance
• Views
• Security
• Low ongoing fees

Investors

• Priorities
• Car Parking
• Split bathrooms
• Easy maintenance / low entry price

DINKS

• Priorities
• Amenities
• Location
• Low entry price
• Proximity to transport

SINKS

• Priorities
• Security
• Location
• Low entry price
• Communal amenities

Demographics – Effect on mix

• Demographic understanding (I.d. People) https://home.id.com.au/

One site : three ways

Changing mix + Changing apartment sizes = Big change in yield

• 5. Planning Frameworks

Local Planning Framework

• Local Planning Scheme/TPS
• Density and height bonus’ / permitted uses / plot ratio / carparking
• Local Development Plans LDP’s (*example)
• Intramaps (*example)
• Development approval
• Community consultation
• Design review panels (DRP)
• Supporting reports
• RAR reports
• JDAP - Opt-in vs Mandatory
• Building Permit (two ways)

TIP: IP: Get a a cost p plan an d done BEF EFORE yo you u sub submit f for DA

Example LDP

Using Intra-maps

Planning Frameworks

State Planning Framework

• R-Codes
• Design WA
• Structure Plans
• Activity Centre Structure Plans
• SAT Mediation / tribunal

• 6. Stakeholder Engagement

Identify whom the project stakeholders are:

• Surrounding residents (advocates/objectors)
• Local Authority
• Professional staff – Planning, Engineering,

Landscaping, Traffic, Heritage

• Councilors
• Mayor/CEO
• Department of Planning L&H
• West Australian Planning Commission
• Future buyers
• Possible ambassadors
• Purchaser demographic
• Investors/Partners
• Service Authorities
• Funding Sources
• Media

Stakeholder Management

Create a plan on how to manage these:

• Regular meetings (a must) IN PERSON
• Local planning staff
• Neighbours
• Investors/Partners
• Deputations (and by whom)
• Architect, Planner, You?

• 7. Post Site Acquisition
• Contractor Procurement Types
• Early contractor engagement/Involvement “ECI”
• Standard tender processes
• D&C contract
• Fixed Price tender construct only
• Pros and Cons
• Tender Timing (Risk vs Certainty)
• Finance Considerations (when to engage) – best tender result

Post Site Acquisition

Selecting your team

• Key consultants (for DA and then later)
• Lead consultant (Architect)
• To novate or not to novate?

Role of a PM versus DM

• Development Manager is responsible for the macro

process – sales, marketing, development and consultant team.

• Project Manager is responsible for the construction

and project delivery. Typically Superintendents representative.

• 8. Project Goes Live
• Getting to site
• Tender process
• Start up meetings
• Road closures
• Site meetings
• Running cashflows
• Approving variations
• Managing design changes

Occupancy Permits Inspections x 2 Completion and Handover Construction

Residents Occupy Settlements Titles Strata Set Up

Cashflow Management

Importance and effect of cashflows:

• Managing budgets
• Managing overruns
• Monitoring hurdles and success indicators
• Repayment of loan – timing/interest
• Payment of profits “distributions” (waterfalls)
• Early warnings
• Level of drawdown required each month
• Key variances

• 9. Project completion, handover & inspections
• Construction PC
• What is practically complete
• Retentions
• Withholding PC
• Inspections
• Defects Register – site works
• Defect warranty
• Problem when you have completed stock unsold
• Builder inspections
• Developer inspections

Handover to Customer

• Pre-Settlement Inspection
• Key handover and schedule
• Manuals USB
• Gift Pack
• Customer Survey

• 10. Building Occupation
• Process of seeking approvals
• Application for titles and approval of strata plans
• Independent certification by building surveyor

Application for Titles

Prior to lodgement

• Building surveyor to prepare Final Strata Plan
• Notifiable variations (if any) sent to buyers (area can change)
• Approval from Local Authority that all outstanding DA conditions have been met and as per:
• Landscape plans
• Waste Management Plan
• Registration of easements and withdrawals of caveats listed on title
• Subdivision conditions

Certifications

• Builder Certifications – ready for building surveyor, subbies and suppliers provide
• BA17 Certificate of Construction Compliance
• BA18 Certificate of Building Compliance
• Certificate of Practical Completion
• Submit to council for occupancy permit

Permits

• Application for Occupancy Permit – Local Government
• Submit BA9 AND BA11 to local authority (building certifier does this)
• Receive
• BA10 Occupancy Permit
• BA12 Occupancy Permit - Strata

Lodging For Titles – constantly changes….

• Application for Strata Plan Approval and Certificates to be lodged with Strata Plan
• Submit
• Form 3 Unit Entitlement – submitted by Surveyor
• Form 5 Certificate of Surveyor
• Form 24 Application for a Built Strata Subdivision
• Receive
• Form 26 WAPC Approved Strata Plan
• Submit
• Form A8 Application to Register Strata Plan
• Form BA17 / BA18 Certificate of Building / Construction Compliance
• Certificate of Occupancy from Local Authority
• BA10 Occupancy Permit
• BA12 Occupancy Permit Strata

Issue of Titles

• Application for Titles (settlement agent/lawyers)
• Issue of Titles (Landgate)
• Lot Sync

Annual General Meetings - Strata

Prior to first AGM

• Registration of Strata Plan and Settlements
• Obtain Insurance
• Lodge Management Statement with Landgate
• Notice of Agenda of first AGM

Required at first AGM

• Finalise Strata Budget
• Execution of Management Agreement
• Settlements FOLLOW

Day 1

Break

• 11. Product Design
• 1. Building design and layout
• 2. Apartment design internals
• 3. Selling off the plan

11.1 Building Design & Layout

• Location of product– price

point

• Orientation
• Cores
• Car parking
• Waste locations
• Gas/Water heating
• A/C controls
• Lifts
• Common areas
• Efficiency
• Overlooking
• Balcony sizing
• Room sizing
• Future development

Building Design

• Location of product in

the building

• Escalation in $/m2 as

you go up the building in height

• Consider how many

lifts will be required

• Orientation
• View maximisation
• Efficiency
• Staging

Building Design

What What do does s efficient look li like?

10/26

What does efficient look like?

• Long corridors
• Single sided
• Escape
• Cost of construction
• Cores

Building Design

Building Design

• Car parking
• At grade vs.
• Deck vs.
• Basement parking

Rule of thumb $10k/$20k/$40k/bay

• Separation of access for public

versus private car parking & security

• Dewatering
• Piling

Building Design

• Separation
• Overlooking
• Future development
• Orientation/daylight
• Security

Building Design

• Common areas/amenity
• Gym floors/noise
• Pool – structure
• Noise
• Balcony sizing
• Room sizing

Building Design

• Lifts/Cores
• Waste locations
• A/C Condensers
• Balcony or Roof
• Screening
• Gas/Water heating
• Centralised
• Individual

Building Design

Consider ongoing maintenance of the strata body that you leave behind:

• Window cleaning
• Garden maintenance
• Common/Amenities areas
• Gyms
• Pools
• Bars

$$$$$$$ in strata fees

Building Design

• Room Sizing

Dependent on specification (bronze, silver, gold, platinum)

Apt Type 1 x 1 2 x 1 2 x 2 3 x 2 Size Range

(m2) (ideal)

50-55 65-75 70-85 90-120 Demographic

(most common) SINKS, DINKS, INVESTOR, SINKS, DINKS, DOWNSIZERS SINKS, DINKS, INVESTOR, DOWNSIZERS DINKS, DOWNSIZERS

Comments

• 65m2 for +

study

• Usually
• mits

island bench

• Not usually

popular with investors – difficult to rent/share.

• Up to 95m2 for

luxury 2 bed

• Need to make

sure visitors have free access to bathroom

• Should

typically include a bath for families

• Larger for

luxury

Building Design – Do’s and Don’ts

• Do
• Orient apartments towards natural light
• Allow for cross flow ventilation
• Consider security in every aspect
• Consider waste strategy and cleaning and

access from the beginning.

• Future proof – views, technology
• Size and locate product with end $ in mind
• Don’t
• Put apartments next to lift cores/waste

chutes

• Have long corridors unnecessarily
• Orient facing South/East (unless you have to)
• Have balconies overlooking
• Have too many typologies
• ‘Over ammenitise’

11.2 Apartment Design - Internals

Apartments should be / feel / have:

• Spacious – clean layouts
• A sense of arrival
• Ample storage
• Flow, movement and practicality
• Access to natural light
• Considered security
• AC controls
• Access to views
• Privacy

Apartment Design

Flow / Movement and Practicality

• Do I have to scale a sofa/island bench to

get to bed each night?

• Can I greet guests at the door without

getting blocked in?

• Is there enough space to open a

dishwasher/oven?

• Bench space – can I prepare a meal here?
• Can I fit basic furniture in?

Live in it ‘in your minds eye’

Apartment Design

Access to natural light

Apartment Design

What does bad look like?

• Borrowed light
• Highlight windows
• Unopenable windows
• Entry into a kitchen
• Complicated layouts and pinch points

Apartment Design

More…what does bad look like?

• Too much dead space
• The Narnia bedroom

Apartment Design

Storage

• Where do I put my linen?
• Where do I store a broom?
• Where does the vacuum go?
• Where is the washer/dryer?
• Is the store attached or in the

basement? Is it secure?

Apartment Design

Security

• Entry and egress to parking
• Entry and egress to the building
• Floor separation controls
• Lift controls
• Visitor access/parking
• Intercoms
• Alarms

Apartment Design

AC controls

• Ducted or split
• Zoned
• What rooms - if at all?
• Ceiling fans

Apartment Design

• Spacious
• Open plan
• Access to views
• Sense of arrival

Apartment Design

Apartment Design

Apartment Design

• What makes someone buy completed

product?

• Spacious – good ‘flow’
• Light/Bright
• Views
• Display – sense of aspiration and place
• Materials
• What makes someone buy off

the plan?

• Clean and easy to read
• Storage
• Furniture placement (scale)
• Perceived Views
• Size

Apartment Design – Do’s and Don'ts

• Do
• Insist on dimensions and furniture (specify sizing).
• Have minimum dimensions of rooms and balconies.
• Walk the room in your mind – does it flow
• Design for views/sunlight
• Don’t
• Use borrowed light
• Enter a room through a walk-in robe
• Over furnish a room
• Skimp on kitchen space – consider the decision maker

REMEMBER: KNOW YOUR DEMOGRAPHIC

11.3 What to look for:

Reviewing Plans – what to look for?

• Mix and location in building
• Sizing of product
• Security
• Flow of movement through the apartment
• Minimum dimesons and depths
• Furniture placement and sizing
• Privacy
• Daily experience of each apartment
• Sense of arrival
• Storage
• Open Plan
• Access to views
• AC controls
• Door openings/swing

Selling Off the Plan (design considerations)

Tips for selling off the plan:

• Show dimensions clearly
• Size furniture accurately
• Beds
• Sofas
• Show strata area: separate out balcony,

car and stores

• Sample boards
• Be clear about upgrades/inclusions

Day 1 – Key Takeaways

• Nothing else matters if you can’t sell it
• Understand your demographic COMPLETELY
• Analyse site constraints yourself – don’t leave anything to chance
• Get a cost plan done prior to submitting your DA
• Contractor procurement type will depend on risk profile and developer entity.
• Do a walk through (virtual) of every apartment type – don’t leave it to your

consultants to determine your product alone.

Day 1 END

Questions?

Day 2 – Feasibility, Marketing, Sales & Customers

1. Feasibility 2. Marketing

• Sales and marketing plans
• Mediums & channels
• Processes

3. Sales

• Preparing for sale
• Appointing sales teams

4. Customer Management

• Customer relationship
• Touch points & communications

• 1. Feasibility
• Creating a feasibility in estate master
• Programming it out
• Input assumptions & standardization
• Revenue assumptions – comparable analysis
• Debt and Equity modelling
• IRR - what it means
• Margin on cost - what it means
• Return on equity - what it means
• Profit erosion and sensitivity analysis
• RLV – and what it means – setting hurdles

Map it out - programming

• Why programming matters?
• Cashflow (cash on hand)
• Drawdowns (debt/interest triggers)
• Interest charges (effect on)

Feasibility

Questions?

Inputs - Land and due diligence costs

Feasibility

Questions?

Inputs – Professional fees

Feasibility

Questions?

Margin Scheme – Simply put

Feasibility

Questions?

Full GST Sale (i.e. No margin scheme) Bob Buys the Land at $5,000,000 and pays $500,000 GST . But then pays full amount of GST based on sales values. Bob claims back GST on land. Versus Margin Scheme Bob buys the land at $5,000,000 and pays no GST. Sells the land and pays GST on margin of (Sales Rev – Land Acquisition price)

Margin Scheme E.g.

Feasibility

Questions?

Factors Affecting Construction Cost

• Demolition
• Enabling works (piling/dewater)
• Construction Methodology
• Staging/Cranes
• Specification – Br/Si/Go/Pl
• Complexity / Materials
• Basements/Decks
• Levels (impact on programme)
• Sprinklering
• Sustainability (green star)
• Landscaping
• Infrastructure servicing

Inputs – Construction Costs

• How many basements $1,000-1,900m2 (1 car bay circa 30m2)
• Demolition and enabling works required
• Complexity of the build and height
• Efficiency of the building / stacking / typologies
• Infrastructure upgrades (power lines, transformers, sewer

extensions)

• Height
• Curing each slab (timing +1 month)
• Sprinkling required
• Level of finishes and specification
• Landscaping – Common areas

Inputs – Construction Costs

Feasibility

Questions?

Statutory Fees

Feasibility

Questions?

Inputs – Landholding costs

Feasibility

Questions?

Inputs – Revenue

Inputs – Revenue

Feasibility

Questions?

Debt / Equity

Feasibility

Questions?

Debt & Hurdles

Hurdles

• What hurdle matters and why?
• Margin on cost –typical ~ 15-20% + = Total Profit / Total Costs
• IRR – Syndicated model. Lower $ return, faster timeframe. ~18-30%
• Margin on Equity (Return on Equity) – e.g. Offshore - no cost of capital, sovereign risk
• Yield on Cost (commercial) = Total Rent / Total costs
• Sensitivity analysis
• Matters when looking at risk for construction timing, sales values, or land ‘buy/sale’ price.

Feasibility

Questions?

Sensitivity

• What is a

sensitivity analysis?

• What is profit

erosion?

Summary / Outputs (check)

Summary / Outputs (check)

Checks:

1. Check Programming

Checks:

2. Check Debt to Equity Debt = Total loan Equity = Including land, total input by developer

Checks:

3. Check Loan to Value Value = Total Revenue Loan = Total Debt

Checks (continued)

4. Check the logic of the gant chart 5. Check GST entries are correct (stat fees excl.) 6. Check headline numbers – are they sensible 7. Run sense tests 20/20/60 8. Check the RLV against other englobo sales prices.

Feasibility

Questions?

Day 2

Break

• 2. Marketing

Marketing is how we GET the lead. Sales is what we DO with it

Marketing

Generating a lead

• Awareness (marketing) – consideration (marketing) – decision (sales and marketing)
• Understanding the demographic and how they want to be sold to (examples)
• Do you need to undertake market research?
• Touching the client – multiple times before a decision
• Determine your best mediums, and what works best
• Recording the lead and where it came from (online/sales agents asking)
• Tracking the cost per lead
• Stay nimble – but reflective (what might not have worked before – might work later)

Kn Know th w the e differ eren ence b between etween l lea ead g gen ener erati tion a and lea ead n nurtu turing.

Wh What at ar are examp ample les s of f le lead ad ge gene nerat ration v n vs.

• s. le

lead ad nu nurt rturin ing? g?

Marketing - Timing

• Timing (preselling construction, and completion)
• Establishing campaigns (EOI, preselling, construction, post completion)

Marketing Channels

Channel marketing (agencies)

• Offshore
• External - Eastern states and local
• Risks and Rewards
• ‘outside the house’
• Reputational and representation risk
• Prequalification of lead and fallovers
• Higher commissions

Vs

• New buyers
• Greater presales

Marketing Mediums

• Signage
• Digital advertising – Paid, SEO, geotargeting
• Print Advertising
• Facebook/Instagram – online posting strategy

(beware the beast)

• Campaigns - timing
• Referrals
• Community and or Launch events
• Sponsorship
• Newsletters
• Direct Mail
• Advertising/Editorials
• Website
• REA realestate.com

The digital curse

• Importance of database and effective management
• “Use it or lose it” – keep it up to date
• Beware the agent selling their database
• Social Media – pros and cons
• Allows immediate communication of messaging
• Real time feedback
• Trolls/online criticism

TIP IP : If If you hav ave an any p presence – yo you m u must ust m monitor it

Creating the project brand

• Branding
• Vision
• Naming
• Colouring / typefont
• Uses of logo incl black and white
• Imagery
• Sponsorship/Ambassadors

Branding Example:

Branding Example:

• Modelled on the Soho House branding
• Edition- first print (news), old school
• Colour theme – Teale
• Texture - Velvet
• Colouring and texture extended to:
• All collateral – brochure, website
• Design of the common area as per Soho House houses

globally

• Fireplaces
• Bookshelves
• Wood and Plush chairs
• Interior design and furnishings

Marketing Collateral

• Brochure
• Renders
• Fliers
• Floor plans
• Pricelists
• Marketing/display suites
• Display/mood boards
• Welcome gift (on purchase)

Marketing Events

• Launch event
• Sales events ‘other’
• Buying off the plan
• Interior design
• Space planning
• Investing in apartments
• Financing
• Market updates
• Topping out
• Completion event

Find nd R Rea easons to to ‘to touch’ th the e prospec ecti tive b buyer yer

Sales and Marketing plan (SMP)

PRO TIP: ALWAYS write* a sales and marketing plan – and no, it’s not the same as a budget. Don’t forget to update it annually.

Writing a SMP

Writing a SMP

Writing a SMP

Get buy buy-in to t the p pla lan f from m sa sale les s agen ents ts a and th the m e marketi eting tea team. Yo You u suc ucceed t toge gether, ,

• r yo

you fail to togeth ether er.

• 3. Sales

Preparing for Sale

• Review and follow the approved SMP
• Lead enquiry collection
• Where are they going?
• Who owns them?
• Have you covered off legal’s and

disclaimers?

• Opt-out procedures?
• Contracts (next slide)
• Buyer incentives i.e. freebies
• Determine deposit?

Appointing the Sales Team

• Appointing sales teams:
• Commission structures – amount $ and timing of payment
• Percentage or retainer basis
• Allowing for early commission payments in the model
• Terminations and fallovers – refundable commissions?
• What happens to leads and who owns the information
• Exclusivity of agency and projects
• Phone numbers/secret shopping
• In house/Offshore /External Agents
• Who pays for the marketing
• Risk of representation

Market Comparables

Gathering comparable evidence:

• What’s on market – same typology
• What’s on market for the same price (other typologies)
• What's recently transacted (RP Data)
• What’s sold not settled (tracking competitors)

Market Comparables - Example

Is ther there a a comp mpetitive reas reason to to pay ay mo more re f for an r an ap apart artment o

• ver

er al all othe thers?

Contracting of Sales

• Standard contract of sale (from legals)
• Standard form of contract
• Disclosure statements (Forms 28 & 29)
• Management statement
• Off the plan or completed stock – different contracts
• Unit entitlements & strata budget
• Strata plan (not the same as the sales plan)
• Sunset clauses

Contracting of Sales

• Conditional or unconditional
• Finance
• FIRB
• Conditional sale / onward chain
• Apartment plan (optional)
• Schedule of inclusions + materials selections
• Any upgrades costed and included

Management Statement / Strata By Laws

For all ‘Strata Titled’ apartment units there are rules which need to be adhered to. This is largely due to two reasons:

1. Residents (tenants and owner occupiers) have a right to quiet enjoyment of their property at all times; and 2. The building is maintained to an agreed standard ensuring resale and rental values aren’t impacted and the building presents well.

These rules can be found in the ‘Management Statement’ and include the standard Strata By-laws known as Schedule 1 & 2 By-laws.

Management Statement / Strata By Laws

Information in Schedule 1 includes:

• Election of Council of Owners group (their

instructions and roles)

• Strata companies' powers and duties
• No painting of external surfaces of the building
• General Meetings rules – Annual General Meeting

(AGM) and Extraordinary General meetings (EGM)

• Utility payments
• Airbnb/Short term rentals

Information in Schedule 2 includes:

• House Rules
• Vehicles
• Behaviour of occupants and their guests
• Children playing on common property areas
• Rubbish
• Pets
• Appearance of apartment/unit or townhouse

Unit Entitlements & Budget

Sales plan vs Strata Plan

Sales plan vs Strata Plan

Post Sales

• Settlements process (notifications required)
• 1st Email – Expected Practical Completion & Settlement Dates / Get finances in order
• 2nd Email – Pre-Settlement Brochure & Book in Pre Settlement Inspection
• 3rd Email – Practical Completion Issued
• 4th Email – Settlement / Titles / Handover Kit
• Misrepresentation issues
• Now buyer can see completed product doesn’t like it
• Quality issues
• Dispute resolution
• Covered off in the contract
• Better to resolve if possible
• Valuation issues
• Bank valuation < Purchase price

• 4. Customer Management

• 3. Customer Relationship
• Touch Points
• Initial awareness
• Enquiry
• Presales
• Post Purchase
• Events
• Information nights
• Pre-Settlement (next slide)
• Construction updates
• Post sales portal
• Residents association – Community building
• Dealing with complaints
• Escalation & damage control

Cons nsta tant b t but t relev relevant com communic ication

• n

Rem emem ember r – a happy c custo tomer tells er tells 5 5 peo eople le. An n unh nhappy c custo tomer tells er tells 100. 100. Make y ke your b r buyers ers your a r advocate tes.

Day 2 – Key Takeaways

• Hurdle rates required will vary from developer to developer – as will equity and debt

requirements.

• Always apply a sanity check to a model/feasibility – does it sound right?
• Ensure your branding reflects your vision, and ensure it carries through in every granular

detail of the product.

• Create/commission a sales and marketing plan – follow and review it.
• Keep in regular contact with your leads and buyers.
• Be wary when setting pricing – undertake a full pricing review – not just what's on the

market ‘for sale’.

• Lead creation is not the same as lead nurturing.

Day 2

END Questions?

Random Stuff – Build to Rent

• Why don't they stack up yet? ($)
• As not considered a MIT, profit is taxed at the higher 30% rate – not 15%;
• Can not claim back the GST until the property is on sold – apartments can;
• Required to continue to pay land tax year on year for the site.
• Key Design Considerations
• Amenities arms race – yoga, dog washing etc;
• Reception – hotel style, visibility;
• Typical in high employment nodes – with transport.

Danielle Davison danielle@davisonadvisory.com.au www.davisonadvisory.com.au