OFF THE FEASIBILITY®
BUILD & DEVELOP YOUR OWN APARTMENT
GENERATE 12% BRICKS AND MORTAR EQUITY
Our directors are legal professionals who started work on building sites from a young age.
Since then, they've managed residential builders, developers, building contracts and subcontracts.
They have over 100 years of combined industry experience with first-hand knowledge of the property cycles since the early 1970's.
Their passion is residential property development through BuilDevelop and its unique Off the Feasibility® concept of property development.
Off the Feasibility®
What you pay & earn
The costs and equity generated vary with the size and value of an apartment
Compare acquiring a new $1M strata apartment
(*assume 18 month completion, 80% LVR, nil capital gain or decline by completion, NSW transfer duty applies)
Off the Feasibility®
Off the Plan
You make money - $120,000 in bricks and mortar equity
The cash cost is less - $80,000
on completion having initially
You make nothing - $nil
The cash cost is more - $240,490 on completion
You pay less - save $160,490
Your return is superior - plus 25% IRR
You pay more - an additional $160,490
Your return is inferior - minus 20% IRR
Interested in building and developing
Off the Feasibility® ?
Don't let your equity in an off the plan property investment be used as a pre-sale to underwrite a developer or as your speculative play on rising markets. Instead, use your equity to underwrite yourself, with others doing the same, by building and developing your own apartment(s) in a project.
We analyse and disclose by project (macro) and apartment by apartment (micro) the property development cost, value, time and contingencies, obtain and satisfy non-recourse finance# and monitor performance of the process.
#includes valuation & quantity surveyors report
Off the Feasibility ® provides a process to convert purchasers of off the plan property investments, first home buyers, landowners with development potential/approval and contractors into micro developers of their own apartment(s).
Each owner contributes their part of the development site to complete the macro project. Success of the development is not dependant on pre-sales, the owners already own the completed strata apartments which they hold separately to the exclusion of the others.
Through our documentation the project is 100% pre-held by each of the owners. They individually micro develop each apartment accounting for its costs and tax obligations based on the owners circumstances.
Compare the Advantages
of building and developing Off the Feasibility®
OFF THE PLAN INVESTORS
Don't pay $1,040,490 for a new $1M apartment*
Pay $880,000 instead. Save $160,490. Make $120,000 in bricks and mortar equity. Acquire the apartment for $80,000 cash on completion having invested $280,000 on commencement*
BANK OF MUM AND DAD
Don't wait years for capital gain to be repaid
Your child could repay you $200,000 in 18 months having built and developed a new $1M apartment generating $120,000 in bricks and mortar equity*
Don't just work on a builder's site
Work on a project where you are building and developing an apartment for yourself
Don't spend or under invest your option fees
Invest the option fee with us and share in the uplift value of your property and also acquire one or more new apartments in addition to the purchase price of your property
Don't risk equity by selling off the plan
Retain more apartments for the same cash outlay without being exposed to settlement risk off the plan
Frequently asked questions
What's Off the Feasibility®?
It's where YOU build and develop your own apartment.
How can I generate 12% bricks and mortar equity?
Example: $1 million apartment generating 12% equity Off the Feasibility®
Value of apartment: $1 million
Cost of apartment: $880,000
Generated equity: $120,000
Initial Cost at commencement: $280,000
Final Cost on completion: $600,000
You generate a developers profit/margin of $120,000 (12%) by building and developing your own apartment
If you borrow $800,000 against your apartment (80% LVR), after paying the Final Cost, you can re-mburse youself $200,000 of your Initial Cost - your cash outlay is $80,000
Alternatively, if you borrow $600,000 against your apartment (60% LVR), after paying the Final Cost, you have an income earning investment which is likely to be cashflow positive
Cushions you from falling property values
Any capital gain is a bonus, not a speculative play on rising values
The rental yield will always be greater as the cost base is reduced by the generated equity
What's the problem with off the plan?
Without pre-sales its very unlikely a developer will get underway with a project.
The off the plan purchaser underwrites the developer’s project.
The purchaser typically pays a small deposit and speculates on rising capital values by completion.
But if capital values fall the development can fail. There is a very real risk the purchasers will default because tighter credit policies require more equity from them by completion.
What's your solution to off the plan?
We have the exclusive right to manage the Off the Feasibility® concept of property development.
Off the Feasibility® provides a unique opportunity for property investors to build and develop new lots (apartments / offices / shops / land) in a property development to generate a return for themselves.
The success of a BuilDevelop residential project is not dependent on converting pre-sales to end-sales.
Why is that so? Because shareholders generate a return for themselves without speculating on rising markets and they already own their apartments on completion.
Is Off the Feasibility® a safe investment?
Yes because the project is, all in all, complete before it starts!
Investor cash is held in trust until required to proceed with the project
The project does not proceed until all cash and borrowing is available
The project lender requires a valuation confirming the gross realisation from a registered valuer and a construction costing from a quantity surveyor
There is no settlement risk because there are no pre-sales. And finance is arranged at project commencement to refinance the project lender. This is available to each investor secured over their apartment at about 60% LVR. Alternatively, investors can arrange their own refinance in a timely manner
The builder is an associate of BuilDevelop