Example 1: A young home buyer’s ‘buy-renovate-lease’
Mr. Thomas could engage the services of Urban Estate Developments, and get friendly & unbiased support from a strong mentor with one or more of:
- Helping him source a property, weighing up all its potential against disadvantages
- Assistance with remainder of the purchasing process
- Where required, devising and negotiating creative solutions to financing their purchase, time for renovation and advertising for tenants before settlement (thereby saving time of dead mortgage payments)
- Creatively managing the renovation to minimise overall time and cost and maximising rent potential & overall value of the property
- Monitor and assist the work of their real estate agent in leasing the property, ensuring that every process is occurring in the best interest of Mr. Thomas to the final dollar.
Possibly unknown at the time to young Mr. Thomas, Urban Estate Developments may also be doing him good that he will realize much later by:
- Sourcing him a property that has potential in its land to one day build and subdivide a second new house for himself or to also lease
- Made his property stress-free low maintenance for several years by installing certain items and adding certain features at the time of renovation
- Knocking on his door a couple of years later to help buy or develop more properties!
Urban Estate Developments is caring enough to not pressure Mr. Thomas’ limited budget with enormous fees. We tailor our service to exactly what he needs and keep our fees low, and aim to save him more money then our fees!
Example 2: A couple building a new home for first time
Mr. and Mrs. Smith can engage the services of Urban Estate Developments, and get expert support with one or more of many tasks, which could otherwise spoil their new home construction:
- Site selection, such as pro’s and con’s of certain blocks of land they are choosing from
- Choosing, managing and monitoring a builder from conception to completion, be it an independent external builder or our own building company
- Manage completion of the many tasks that the builder may not do, such as landscaping and finishes
- Help manage the numerous issues with their home loan financier
Not only could Mr. and Mrs. Smith’s new home be constructed without fuss, they may well be saving more money than the fees paid to Urban Estate Developments.
Example 3: Two young families gaining otherwise unaffordable brand new homes
The two families could seek help from Urban Estate Developments, and not only have their dreams come true, but quite possibly come true at prices below market.
Urban Estate Developments could manage the development of a pair of brand new separately titled homes on one block (where zoning permits), and leave the families to enjoy not only their dream homes, but also the development profit in the form of lower prices!
Urban Estate Developments could:
- Source a site in a suburb and street acceptable to both families
- Purchase the site on behalf of the two families with their deposits combined (in their own names)
- Manage the entire development process, giving both families choices of floor plans, room sizes, fixtures, fittings, and colours etc for each of their homes
- Fully complete, and subdivide the two new homes into 2 separate titles
- Transfer the ownership of the homes to each of the two families
The above scenario could also apply for:
- Two siblings or relatives
- Two individuals gaining investment properties at below market value
- A group of 5 families having a complex of 5 townhouses developed for investment or self-occupation.
There are in fact many creative options for our clients, as long as they remain united with us and the other shareholder families through the development. And virtually every option is safe, because the worst-case scenario is that the shareholder families are left with the undeveloped site, which may well be worth more by that stage!
Example 4: A superannuation fund expanding their property portfolio
The company could engage the services of Urban Estate Developments to carry out one or more of:
- Simply managing the entire development process from start to finish, or
- Site sourcing and selection, and help consider such as pro’s and con’s of certain development sites they are choosing from. In process, minimize or perhaps even eliminate the small pre-purchase investigation costs
- Helping devise a building design that would be most suitable for the company’s investment needs; a design that would maximise rental income, minimise maintenance, strata, and council costs – yet be something very marketable when the time comes to sell
- Choosing, managing and monitoring a builder from start to completion, be it an independent external builder or our own building company
- Choosing, managing and monitoring all engineers, architects, and all other professionals involved in the project.
Our goal is to not only help simplify your immediate property portfolio expansions. We will go out of our way to build good ongoing relations with clients such as superannuation funds.
Example 5: Amalgamation of neighbouring residential properties
The two owners seek to gain best value from their long held properties, and decide to investigate development potential in their land.
The two owners could engage services of Urban Estate Developments and have their properties amalgamated into one large development site. Subject their local council requirements, local market and demographics, their land could be redeveloped / rezoned for:
- Low density housing subdivision (for standard single or 2-storey homes)
- Medium density (for townhouses / villas)
- High density (for units – although this may be unviable and controversial in most rural areas)
- Commercial development (subject to local demographics)
Having opened up the site to many opportunities, Urban Estate Developments could go further and:
- Engage in a joint venture with the owners to share the development gains, or
- Develop the land for the owners and leave them to occupy, sell or lease their new properties, or
- Purchase the site outright and develop ourselves, or
- Setup and on-sell the site to another developer
Since Mrs. Wilson wanted to only downsize to a smaller property, she has the option to retain not just one of the brand new properties, but also the profit or an investment property, all at the same address! Meanwhile Mr. & Mrs. Jones could sell the entire development (completed or not) and walk away with much more money to setup a better life when they move interstate.
Neighbourhood amalgamation opens up huge opportunities for the property owners. This very common form of redevelopment is not only very profitable for the owners, but it also brings new life to well serviced but aging neighbourhoods.
Example 6: Rural Amalgamation
In the past, due to lack of compassion between parties, sites like these are simply purchased by large corporate property developers in raw forms, leaving the owners behind with just a fraction of what their land is about to become worth. But Urban Estate Developments is much more caring of the sentiments of these three families, and offers a different approach.
Subject to cooperation and understanding between all three families, Urban Estate Developments could devise a creative outcome where not only do all the families gain much more value from decades of toil, but have their family names live on in the area!
Urban Estate Developments could:
- Amalgamate their three lands and organise a rezone for subdivision to small residential lots (or in some cases, commercial or industrial where council & state planning permits)
- Manage the entire redevelopment process in conjunction with our associate professionals, from planning consultancies / meetings etc, through to earthworks & infrastructure
- Subdivide the lots to highest and best use for each of the families, and even name the streets after them!
- Where asked, market and on-sell the vacant blocks if the families want to simply cash-in on the development
- Where agreed, engage in Joint Ventures with the families to sell house & land packages on some blocks (using our sister building company)
- Where asked, retain a number of blocks and use our own building company to build new homes for the children of those families, resulting in them having brand new homes at well below market price (in streets possibly named after their own parents / grandparents!)
- Where asked, retain some residual land or complete and hand back some of the vacant blocks to the families to do what they wish some time later
In this example, the Nguyen family’s farmhouse was as new, and also of great sentimental value to them, so they wish to retain the house for now. Urban Estate Developments respects the family’s wishes and (as an example) could retain not just their home, but also approx. 2000sqm of land around it – which in around 10-15 years is likely to become yet another very high value development site for higher density housing!
The funding for such large rural amalgamation style developments need not come from the 3 families. We could utilise our own funds, raise funds from our associate financiers, from private investors, or best of all – from presales of blocks / house & land packages.
Example COMMERCIAL projects
Example 1: Commercial development
Many developers have come and gone, but none want to have anything to do with his “difficult” property. All simply go up the road to find “dream” development sites. Urban Estate Developments however approaches Mr. Robinson’s property with creativity and an open mind, and turns all his problems into well deserved opportunities.
We assess his local area and find that:
- There are no local area commercial developments happening to serve all those new homes up the road!
- Mr. Robinson’s land has high exposure through a clear 200m frontage to the major road
- There is no other remaining private land with direct access to the main road in the last 3km stretch
- The developers who went up the road to buy those “dream” sites are stuck with storm water management issues!
Meanwhile, we had recently been approached by two national fast food franchisees, one major service station chain and a small grocery store operator, all urgently seeking to establish their businesses in a new suburb. Through meetings and seminars, we not only offered all those businesses ideal custom built business facilities, but substantial other support through our associate advisors in helping them setup. Then we present them a location they wouldn’t refuse – Mr. Robinson’s land!
Urban Estate Development could manage this opportunity as following:
- Engage into a joint venture with Mr. Robinson to help him achieve a much greater reward for his decades of strive.
- Add value to the local area by organising a rezone of his land to commercial, which was not opposed – but praised by the council and underserviced locals
- Undertake major earthworks (with our associate companies) to turn 70% of his land into prime commercial / retail space, and other 30% into a local sports field / storm-water basin (adding even further value to the local area)
- Build all the retail stores and other infrastructure engaging our own as well as associate companies, and lease the spaces to the anxiously awaiting retailers
- Subdivide and sell the new developments with individual tenancies to corporate investors, or perhaps let Mr. Robinson keep a retirement nest-egg of unseen proportions!
- Setup the completed sports fields / storm-water basins to service the housing developers up the road for channelling all their storm-water into
Before our alliance, Mr. Robinson was facing having to sell his prized property for the price of a flood plain. Now, not only he has achieved a substantially better return, we have also more than paid for ourselves just through our expertise and associations.
Furthermore, our relation with Mr. Robinson doesn't end there. Besides becoming our newest associate investor, Mr. Robinson starts another development 5km up the road, and the rest is history!
Example 2: Industrial development
Their lack of space at their premises has limited their stock storage capacity, and lack of access for semi-trailers has resulted in them losing corporate contracts. They have tried finding suitable premises for over 2 years now, and see no success. They finally seek help from the right source – Urban Estate Developments.
What XYZ Industries really require is fully custom designed and optimally located facility to house their unique operations. Till now the idea of a customised facility has been unconceivable, however this is where the creative thinking and open-minded approach of Urban Estate Developments could potentially solve the problems for XYZ Industries.
Urban Estate Developments in the meantime got approached by 3 smaller businesses with virtually the same vehicle access requirements as XYZ Industries.
In conjunction with our associates, Urban Estate Development could:
- Work with the client in deciding a region of the city where they establish their new facility, considering demographics, business opportunities, and staff needs
- Carefully assess the nature of facility and vehicle movements required by the client, and match them to the right street and suburb – considering access to highways/motorways, local facilities, land zoning, etc
- Find a block of land to fit their new facility (not have their new facility fit the land), and attempt to purchase the most ideal street positioned land, whether it is for sale or not!
- Negotiate a deal with the landowners and create a win-win outcome for all parties
- Fully develop the facilities, all the infrastructure, subdivide the premises and hand over the premises to the businesses to settle down and do what they do best
Urban Estate Developments carried out the entire above development on land owned by King Enterprises. Mr. King purchased the land a few years ago when the rural land was rezoned to heavy industrial, with the intention of one day helping his son expand his business. Our offer to Mr. King was successful, because of all the parties that expressed interest in his land we were the only ones to consider and cater for his goals.
We could design the industrial development such that the land development profit margin subsidises the facilities! The land is firstly split into two, where half is used to build the custom designed facility for XYZ Industries, and other ‘mirror-half’ is built and split into 4 individual industrial units which we successfully lease to the other 3 interested smaller businesses, and retain the last one for Mr. King’s son’s business!
The 5 businesses share the one large driveway/road access that they could call ‘a truck driver’s dream’! The development is less than 1 km to the local motorway, and has all other amenities within walking distance.
Despite being such a grand facility for 5 businesses, the development required virtually none of our own funding! Our deal with King Enterprises and the 4 businesses was set in such a way that the ‘off the plan purchase’ proceeds from the 4 businesses paid for all construction, and meanwhile Mr. King provided delayed settlement on the land.
The final outcome was that in return for their early commitments, the 4 businesses settled into optimally custom designed facilities at below market prices. Meanwhile King Enterprises were left with one free industrial unit and a huge profit that they could never have otherwise imagined.