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 • Lifts point • Common areas • Orientation • Efficiency • Cores • Overlooking • Car parking • Balcony sizing • Waste locations • Room sizing • Gas/Water heating • Future development • A/C controls
Building Design • Location of product in the building • Escalation in $/m 2 as you go up the building in height • Consider how many lifts will be required
Building Design • Orientation • View maximisation • Efficiency 10/26 • Staging What What do does s efficient look li like?
Building Design What does efficient look like? • Long corridors • Single sided • Escape • Cost of construction • Cores
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 Apt Type 1 x 1 2 x 1 2 x 2 3 x 2 Size Range 50-55 65-75 70-85 90-120 • Room Sizing (m 2 ) (ideal) SINKS, DINKS, SINKS, SINKS, DINKS, DINKS, Demographic INVESTOR, Dependent on specification DINKS, DOWNSIZERS DOWNSIZERS DOWNSIZERS (most common) INVESTOR, (bronze, silver, gold, platinum) • Up to 95m 2 for 65m 2 for + • Should • • Not usually luxury 2 bed study typically popular with • Need to make Usually include a bath • Comments investors – sure visitors omits for families difficult to have free island • Larger for rent/share. access to bench luxury bathroom
Building Design – Do’s and Don’ts • Do • Don’t • Orient apartments towards natural light • Put apartments next to lift cores/waste chutes • Allow for cross flow ventilation • Have long corridors unnecessarily • Consider security in every aspect • Orient facing South/East ( unless you have to) • Consider waste strategy and cleaning and access from the beginning. • Have balconies overlooking • Future proof – views, technology • Have too many typologies • Size and locate product with end $ in mind • ‘Over ammenitise’
11.2 Apartment Design - Internals Apartments should be / feel / have: • Considered security • Spacious – clean layouts • AC controls • A sense of arrival • Access to views • Ample storage • Privacy • Flow, movement and practicality • Access to natural light
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 • What makes someone buy off product? the plan? • Spacious – good ‘flow’ • Clean and easy to read • Light/Bright • Storage • Views • Furniture placement (scale) • Display – sense of aspiration and place • Perceived Views • Materials • Size
Apartment Design – Do’s and Don'ts Do • Insist on dimensions and furniture (specify sizing). • Have minimum dimensions of rooms and balconies. • REMEMBER: Walk the room in your mind – does it flow • KNOW YOUR Design for views/sunlight • DEMOGRAPHIC 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 •
11.3 What to look for: Reviewing Plans – what to look for? • Daily experience of each apartment • Mix and location in building • Sense of arrival • Sizing of product • Storage • Security • Open Plan • Flow of movement through the apartment • Access to views • Minimum dimesons and depths • AC controls • Furniture placement and sizing • Door openings/swing • Privacy
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?
Margin Scheme E.g. 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)
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
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