This can be quite common as a lot of our developments are in up-and-coming areas called ‘Future Growth Centres’. These areas usually have maps within the local Council or Sydney Water (depending on area) outlining where the future services will be installed and an approximate timeline for when they’ll be accessible. We will factor this into the development and act accordingly. It is also a common experience to have relevant services (such as sewer, storm water etc.) nearby that we can budget the cost of bringing the services into our developments during our due diligence phase.
In most cases we would like to develop the entire property and not complicate the deal. However in some very few cases we have retained the existing property in the deal and developed around. The final decision on weather or not we can keep an existing residence will come down to council. Their decision will be based on the condition of the property, it’s location, how much land is planned on being allocated to the residence, the proposed internal road layouts and how that fits with the wider road architecture.
Our exclusive due diligence period, or DD period, is crucial to every development. During the DD period we make a considerable investment of time and money determining the viability of each project based on council requirements, the market, project costs, preparation of contracts and legal docs, the agreed purchase price and any other physical constraints. Physical constraints may include things like engineering solutions for water and sewer and reserve space for nature or environmental zones etc. Given we’re spending a significant amount of time and money during our DD period, often tens of thousands of dollars and months of work, we feel it is reasonable that the the property is reserved exclusively for us and we’re not competing against other buyers during this time.
In the case that our company has offered a price per acre and you are happy with the price, we will send an independent land surveyor out to your property during the Due Diligence period to work out exactly how big your property is. Once we have the precise property size we can determine the exact purchase price for you. During our desktop research we will have an approximate size of your property, yet we anticipate that this won’t change much with the final survey.
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