'Owner-Developer' Development
Overview
Residential Property Development or simply Residential Development is undertaken, as widely known and in simpler terms....
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for the purposes of Investment, Asset/Wealth Building, e.g.,
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Lots, i.e., Land for Housing
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Multi-Dwelling, i.e., township like development of a series of multiple homes
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Townhouses, Units
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for the purpose of direct consumption by the Consumer, i.e., 'Owner-Occupier' homes
The 'Traditional Model' Residential Development is undertaken entirely by Developers, Wholesalers, and Service Providers, and the Consumers remained the end-customers.
On the contrary, ‘Owner-Developer’ Residential Development refers to complete end-to-end development of one or several residential properties, undertaken directly by Consumers themselves, i.e., a single 'Household' or a number of 'Households' (Group/ Consortium).
Upon completing the development of residential properties, these 'Household/s' become the ‘Owner-Occupier/s’.
Goal is to potentially achieve significant levels of cost-effectiveness and strive to derive several benefits, yet aiming to achieve desired quality.
Development for Investment
Over the recent decades if not more, Asset or Wealth building using the avenue, 'Traditional Model' Residential Development, relied on investment (Finance) to acquire physical assets and such acquired asset(s) were expected to produce the return on the investment, in order to generate 'Passive' income and produce the Wealth.
Perceived outcome from asset's performance was based on numerous Speculations, Predictions, Interpretations, so on and so forth.
In a way, such an approach is not much different to Share Markets and similar other avenues for Asset/Wealth building.
Current economic climate, significantly impacted the Residential Development sector due to several factors, to name a few...
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slower-economic recovery post-Pandemic, followed by
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interest rate increases
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shortage of Building Trades and Workers, and Materials
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increased cost of building and housing
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fluctuating consumer confidence
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uncertainty around household income caused by unemployment/under-employment and
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similar other factors.
Development for direct consumption
(i.e., Owner-Occupier Homes)
In the current economic climate, 'Households' are experienced with significantly higher levels of ‘Total Cost of Ownership’ (TCO), to acquire and own residential properties, due to several factors, just to name a few…
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Fluctuating, at times much higher housing prices
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Higher housing prices requiring, significantly higher levels of financing
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Fluctuating financing costs
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Significantly higher levels of costs to finance, over the term
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Ever increasing cost of service providers and workers, maintenance services and
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Similar other factors
Challenges, Risks, Constraints
Factors mentioned above led to significantly impacting cost-effectiveness of development, which in turn...
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raises concerns around, confidence levels on the return on investment, when pursuing Traditional Model Residential Development, as the avenue for Investment and Asset/Wealth building
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makes it difficult and at times considerably expensive to acquire and own residential property, even to undertake Additions / Alterations / Renovations to an existing residential property
These factors mean, 'Households' end up subjecting themselves to experience significant levels of risk, stress and constraints caused by several factors.
Most important factor being, Financial obligations, particularly when 'Households' are exposed to reduced levels of income or loss of income, caused by events such as...
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Organisational restructuring/Downsizing
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Economic Downturns
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Pandemic and the like
Financial obligations almost 'stays for ever', over a significantly extended period (e.g., 30 Year Term), of the Household's lifetime.
This means, Households end up tying themselves down almost over their lifetime, to fulfil such Financial obligations, thus leaving little or no room for...
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pursuing own goals, passion and the like
i.e.,
Lifetime Financial obligations means, Households end up tying themselves to the work or business, that is not necessarily aligned to their own goals, so on and so forth
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acquiring assets or savings for their 'rainy days'
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achieving 'Work-Life Balance'
...unless Financial obligations are managed differently or the Household's income has adequate financial reserves to support the above.
Alternative Strategies and Perceived Outcomes
Alternative strategies to residential development, such as the 'Owner-Developer' approach, offers the potential to...
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where possible, minimise/eliminate costs associated with residential development, at the outset, therefore
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minimise the need for higher levels of financing
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minimise/eliminate various risks, stress, and constraints
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work towards achieving cost-effectiveness, yet aiming to achieve desired quality
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strive towards deriving several benefits, more importantly 'Value-for-Money'
Above offers the potential to achieve savings through cost-effectiveness and benefits.
This in turn, effectively offers the potential to replace the need to pursue investment in the Traditional approach to Residential Development, as the avenue for Asset/Wealth building.
The Approach
‘Owner-Developer’ project involves a single ‘Household’ or a number of 'Households' coming together to...
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acquire...
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larger block of land or
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an industrial/commercial property converted for residential development purposes, or
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an ageing residential property, or
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multiple residential properties (ageing or otherwise), adjacent to each other, so they could be combined, suitable for residential development, or
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similar other properties that could be converted for residential development purposes
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thereafter develop the site, build and own ‘owner-occupier’ homes.
Development and the Potentials
'Owner-Developer' projects entail developing properties both in the Metropoliton and Regional/Rural parts of the State.
Development in the Regional/Rural is typically suited to those who wishes to settle in 2nd or 3rd tier cities (Regional) and smaller towns (Rural).
Residential development undertaken in the Metropoliton offers the potential to derive reasonable benefits and 'Value for Money'.
On the other hand, residential development undertaken in the Regional/Rural offers the potential to...
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derive most benefits and significant 'Value for Money'...
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due to considerably lower cost of land or properties for development and lower costs to undertake residential development, similar other factors
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i.e.,
Owner-Developer direct involvement throughout the project results in significantly reduced costs, at times elimination of costs, which are otherwise incurred in traditional approaches to undertake residential development
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thus, requiring considerably much lower levels of finance, for the project
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achieve...
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not only a much relaxed lifestyle
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but also a much higher levels of cost-effective lifestyle
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than the urban, where Households are exposed to...
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ever increasing cost of living
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‘hustle and bustle’
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ever increasing complexities in every aspect of life, of which only the 'Tip of the Iceberg' is visible.
REDM's Services
REDM offers a range of services to support the 'Owner-Developer' projects, with a view to instil transparency, minimise or eliminate complexity, and as much as possible achieve cost-effectiveness for the 'Owner-Developers'.
REDM’s services are formulated, drawing from wealth of experience and knowledge gained over a number of decades in the industry.
In summary, 'Owner-Developer' projects encompass the following key stages...
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Planning, Feasibility
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Land or Property acquisition for residential development
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Site Preparation and Development...
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Site Clearing and Preparation
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Development Approvals (Town Planning, Sub-Divisioning)
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Infrastructure (Roads, Sidewalks etc)
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Services (Power, Gas, Water, Drainage, Phone, Internet etc)
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Other
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Architectural Concepts and Solutions for the residential development (Home/s)
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Development Approvals (Building Permits and Other Permits, where applicable)
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Acquisition of Service Provider Services (Owner-Builder or alternatively Builder, Trades, Specialists)
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Build and Other
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Commissioning
Refer to the 'Service Streams' page, for additional information and the range of services offered, to assist in the above referred key stages.