NSW Land Subdivision Development Project

by Kent H
(Sydney NSW)

Hi Colm,

I have a project at (place name removed) NSW which is a 20 lots of residential land. I bought it about 5 years before but still not be able to develop it myself.

I am a builder working for a company for few year already and now I want to do it myself. I have contacted with my bank but they are not interested in small town like Parkes.

And other finance broker want to have at least 75% of their loan amount for start. I have read your book through and learn a lot, even I have worked in building industry for more than 20 years.

Could you give me a bit more advice on how can make a kick start on this project? All the best.


Hi Kent,

Thank you for your comments on my material helping you learn more about real estate development.

If you go back to the first section concerning the Market and re-read it. The market rules our development lives. We never develop for 'ourselves' - always for the market.

Part of that market - the finance part - is telling you they are not interested in lending money for a development, so that should tell you that perhaps right now is not a good time to even consider developing in that part of NSW.

On top of that a Finance Broker is giving you bad terms, so once again he is telling you it is not the right time to develop in your area. So my advise is 'take notice' of what an important part of the development business is telling you.

Now if you were to proceed with the feasibility study you will also find that the finance terms & conditions will make your project not financially viable.

However there is always something you can do that is positive for your project, so that when demand returns and financial conditions are better, you can start developing immediately.

For example have you get development approval of your plans ... that is have you received the Council's letter of approval? If not, you can start and complete that process.

Remember, that by getting an approval from Council you are increasing the value of your land and that is always a positive thing to do.

With an approval letter in your hand and the development demand in your area comes back, you are in a position to get started developing pretty much straight away.

The next thing to do is keep up all your market research work as I emphasize in my teaching.

I hope this helps your thinking. In the meantime I am off to Melbourne tomorrow where I am giving my two day seminar.


Colm Dillon

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