Woodstone Developments, Suite 12/40 Yeo Street, Neutral Bay (2026)

21/06/2023

Project seven - The Breeze.

Stay tuned. We are underway.

29/04/2023

I’m currently sourcing builders for my next project and I got to thinking about what some of the key considerations to consider when sourcing a professional builder.

It’s no secret that finding a quality builder for your property development project can be a daunting task especially with all the media hype around builders going broke and bankrupt.

With careful consideration you can reduce the risk by spending the time upfront to get to know your builder and assess the risks of the project before turning soil on the site.

It’s important from the onset to ensure that you are working with a builder who will deliver your project on time, within budget, and to a high standard of quality. In all of this it’s paramount to develop a relationship with your builder from the onset as the relationship is going to last in some instances up to 24 months so it’s important to know what you’re getting into.

Here are some of my top points I believe need to be considered when looking to source quality builders.

1. Ask for recommendations: Ask friends, family, developer community members and other developers who have worked with the builder you’re considering. You can also check online reviews, professional websites, and industry associations. Something I learnt very early on in one of my first projects was to also ask some of the trade contractors who have worked for the builder previously. Questions to ask would be, does the builder pay on time, and how does the builder manage their timelines.

2. Check for licenses and certifications: Ensure that the builder you are considering is licensed and certified by relevant authorities in your area. This will guarantee that they have the necessary qualifications and experience to carry out your project. It’s important to note they are certified and licensed for the type of build your going to undertake.

3. Verify insurance: Check that the builder you are considering has adequate insurance coverage, including public liability insurance, to protect against any unforeseen accidents or damages that may occur during the project. Make sure that the builders Home Warranty Insurance covers your project and is valid for the entire project. As a developer you also need to consider what insurances you need to protect yourself and your site.

4. Evaluate their experience: Look at the builder's portfolio and ask for references from previous clients from similar projects. This will give you an idea of their level of experience and the quality of their work. You want to find a builder that is familiar with your size of project and has proven this on previous projects. You also want to make sure the construction team not just the builder can deliver on your project.

5. Check for transparent pricing: Ensure that the builder provides a detailed breakdown of all costs associated with the project. This will help you avoid any unexpected expenses or hidden costs that may arise during the project. I believe it’s important to get as many quotes as possible and be comfortable with the price you adopt. Getting the cheapest build doesn’t always guarantee and smooth construction timeline. On the other side of the coin, you don’t necessarily want to go for the highest price either as this will erode away your profit.

It’s important to note that a cheap builder that takes a few more months to complete the build will end up costing you money in the long run. It’s important to note here that not only are you asking for transparency in the build cost, but you also want transparency in the construction timeline as well.

You also want to be just as invested in knowing what’s not included in the build price that may end up as a PC item on the other end. You need to get granular on this, right down to things such as the clothesline, letterboxes, fixtures, and fittings and even things like, retaining walls and OC certificates.

A final point here is to make sure your builder’s proposed drawdown for funds reflects that of the banks. Many jobs have been held up because of different expectations in funding timelines and payment drawdowns. This needs to be discussed at the onset. In some cases, especially larger jobs an independent QS will get involved to manage and approve payment drawdowns and that they match the completed works submitted.

6. Check for warranty: Verify that the builder offers a warranty for their work. This will provide you with peace of mind that any defects or issues will be rectified by the builder after the completion of the project.

7. Review the contract: Carefully review the builder's contract to ensure that all terms and conditions are clearly stated and that they align with your expectations. This is very important and is worth getting a specialist solicitor involved to make sure you are covered in the event of the unforeseeable. Most industry association contracts will greatly favour the builder so it’s important for you to know your position if things go wrong.

8. Assess communication skills: Evaluate the builder's communication skills and their ability to keep you informed throughout the project. This will help to avoid any misunderstandings or delays. In the early days you want to assess how they communicate with you, their team, and their contractors. If you get a chance, ask to meet your builder onsite to see how they manage and communicate with their trades.

9. Check for adherence to regulations: Verify that the builder adheres to all relevant regulations and building codes in your area. This will ensure that the project is completed safely and to a high standard of quality. You want to make sure they know your local town plan and have a good understanding of the compliance issues pertaining to the site.

10. Visit ongoing projects: When you get to a short list of builders ask to visit ongoing projects that the builder is working on to see their workmanship in action. This will provide you with a firsthand perspective of their abilities and the quality of their work.

11. Relationship: The number one thing I believe is that you understand the relationship you have with your builder. Things will inevitably go wrong at some stage and its important at that point to be able to collectively work through the challenges together rather than throw s #%t at one another. Many issues onsite just need a different perspective and can be relatively easy to navigate providing both parties work together. Remember your builder is just as keen to get the job finished as you are so arguing will only stalemate the project and add to the cost.

12. Be respectful of their time: I say this more so when you are getting quotes. For a builder to quote a project to the letter it can take up to two days. In the early days you’re looking for estimates, but you want those estimates to be a close as possible to the final price. Have a look at some of the other comparable projects your builder has completed recently and ask if they were to build that same product today what would it cost.

It’s also important for you to be transparent with them and let them know the challenges on the site. You can’t expect a builder to give a reasonable estimate if they don’t know what’s onsite or more importantly what’s under the ground and how the block slopes.

When you’re getting close to a solid short list then in some cases you may need to pay the builder for their time. I feel it’s better to do this and get an estimate as close as possible than just a rough number picked out of the air. Most builders these days are too busy to sit down for a couple of days to do a quote without being paid for their time.

Happy building.

15/04/2023

Purchasing a development site is a significant investment that requires careful consideration and planning. One of the key aspects of the transaction is negotiating the settlement terms.

Settlement terms are the conditions that both parties agree upon for the transfer of ownership and payment of the purchase price.

In many cases, especially in this market, developers have the opportunity to stack the cards in their favour. In this video, I share a little hack on how developers can potentially save $1000's on holding costs during settlement.

I'm also going to share below nine settlement terms that a developer may want to consider when buying their next development.

Make sure you seek professional advice from a qualified solicitor and/or conveyancer before signing any contract. I'd even suggest making sure your Accountant is also comfortable with the transaction and terms.

1. Extended Settlements: This settlement term involves delaying the settlement date for a longer period than usual. An extended settlement allows the purchaser more time to arrange finance, undertake due diligence, and secure any necessary approvals before completion. Make sure you get written consent from the vendor first that they agree to support any approvals you may wish to apply for prior to settlement.

2. Early Access: Early access allows the purchaser to access the development site before the settlement date. This settlement term can be beneficial as it enables the purchaser to start work on the site earlier and potentially save time and money. This can include site surveys and even DA applications prior to owning the property (make sure you get the owner's consent)

3. Sunset Date: A sunset date is a deadline for the completion of the settlement. This settlement term is essential as it ensures that both parties meet their obligations within a reasonable timeframe.

4. Deposit Bond: A deposit bond is a form of insurance that can be used in place of a cash deposit. This settlement term can be useful if the purchaser is short on cash but still wants to secure the property.

5. Vendor Finance: Vendor finance involves the vendor lending money to the purchaser to help with the purchase of the property. This settlement term can be beneficial if the purchaser is struggling to secure financing from traditional lenders.

6. Delayed Payment: Delayed payment involves delaying the payment of the purchase price for a certain period. This settlement term can be useful if the purchaser needs time to generate income from the development before paying the purchase price.

7. Release of Deposit: The release of the deposit involves releasing the purchaser's deposit back to them if the sale falls through due to a condition not being met. This settlement term can be beneficial as it reduces the risk to the purchaser of losing their deposit.

8. Option to Purchase: An option to purchase provides the purchaser with the right, but not the obligation, to purchase the property at a future date. This settlement term can be useful if the purchaser needs time to complete their due diligence before committing to the purchase.

9. Vacant Possession: Vacant possession means that the property is delivered to the purchaser free of any occupants or tenants. This settlement term can be beneficial if the purchaser intends to start work on the development immediately.

In conclusion, settlement terms are an essential aspect of purchasing a development site. A purchaser should carefully consider their options and negotiate terms that suit their needs and requirements. By doing so, they can reduce risk, save money and time and ensure a successful transaction.

15/02/2023

Small-scale property development can be a lucrative business, but it is also full of potential pitfalls that can lead to costly mistakes and failed projects.

I recently presented at a property development seminar in Melbourne and in the break, I was overwhelmed with questions about what I believe are the top things to look out for, or to be aware of when developing property.

So here are my top 10 tips on how to avoid costly mistakes when doing a small-scale property development project.

1. Underestimating the costs involved

One of the biggest mistakes I see developers make is underestimating the costs involved in a property development project. This often leads to budget overruns, which can cause financial stress and in some cases liquidity issues. To avoid this mistake, I believe it’s absolutely essential to have a detailed budget that takes into account all costs associated with the project, including labour, materials, permits, and any unexpected expenses that may arise.

Contingency must be considered not just for materials and labour but also for time blowouts. I see many developers searching areas for sites when they don’t even know what they are looking for and whether that particular area is even feasible.

2. Ignoring the local planning laws

Before starting any property development project, it's crucial to research and understands the local planning laws. Ignoring these laws can result in costly fines and even halt the project completely. Learning your local zoning and planning laws are key. Developers need to master their local zoning regulations, building codes, and environmental regulations and even more importantly consult with local area experts such as town planners to guide you through the development process.

3. Failing to perform proper due diligence

Due diligence is an essential step in any property development project. This includes researching the property's history, evaluating its physical condition, and assessing its financial viability. Failing to perform proper due diligence can result in unexpected costs, legal issues, and other problems down the line. I believe 95% of the groundwork (pardon the pun) needs to be done well before you start construction. You need to be well aware of what you’re getting into on-site and more importantly what you may potentially find and how you’ll respond to this.

4. Overlooking the importance of market research

This is a big one. Market research is an important part of property development, as it helps to identify the demand for specific types of properties in a particular area. As developers we are sourcing sites today and, in many instances, not selling our product until 18 months to 2 years down the track. Ignoring market research is no different to gambling and can lead to poor investment decisions, resulting in projects that are not financially viable. Developers should research the market conditions and demand for specific property types in the area they are considering and adjust their plans accordingly.

5. Underestimating the time required to complete the project

Another big one. Another common mistake developers make is underestimating the amount of time required to complete the project. So many people look at sites with rose-coloured glasses and think everything will go smoothly. Naturally, we hope everything runs smoothly but sometimes things pop up. This can lead to delays, which can result in additional costs, as well as a loss of income from missed rent or sale opportunities. To avoid this mistake, it's important to have a realistic timeline in place, including a contingency plan for any unexpected delays.

6. Not having a clear exit strategy

A clear exit strategy is crucial in any property development project. This includes deciding when and how to sell or rent the property, as well as how to handle any potential legal issues that may arise. Not having a clear exit strategy can lead to missed opportunities and potentially even financial losses. In every development, I believe you need to have at least 3 if not 4 exit strategies. These should always be considered and reviewed at every milestone.

7. Hiring the wrong contractors

Choosing the wrong contractors can lead to delays, cost overruns, and poor-quality work. Proper due diligence should always be undertaken on your builder well before commencement. Developers should thoroughly research and vet potential contractors and consider their past work and references before making a decision. It’s also important to ensure they are familiar with the size and quality of your development and expectations. You need to find a builder who has a proven track record for what you’re wanting to build.

8. Not having proper insurance coverage

Proper insurance coverage is essential in any property development project. This includes coverage for the property, as well as liability insurance for any potential accidents or legal issues that may arise. Not having proper insurance coverage can result in financial losses and legal issues.

9. Not having a contingency plan

A contingency plan is a backup plan for unexpected events, such as natural disasters, legal issues, or other unforeseen circumstances. Not having a contingency plan can result in financial losses and potential delays. Developers should have a contingency plan in place before starting the project and review it regularly to ensure it remains relevant.

10. Failing to properly manage cash flow

I believe this is the number one thing to be mindful of as a developer. Proper cash flow management is crucial in any property development project. This includes managing expenses and ensuring there is enough cash on hand to cover unexpected expenses and delays. Failing to properly manage cash flow can result in financial stress and potentially even bankruptcy. Developers should have a detailed cash flow management plan in place and regularly monitor their expenses to this plan. You need to make sure you have buffers in place to weather the storm with time delays, cost overruns and unforeseen blowouts.

I hope this helps anyone think about getting started in property development. Please understand there are many more other things to look out for, but these are what I believe to be my top 10.

Happy developing.

Grant

25/01/2023

BOOM💥

First project for the year is underway
Site survey - Underway
Town Planner - Locked and loaded
Engineers - On it
Settlement - 6 months. Time to get the DA before acquiring the site

Pumped 💪💪

06/01/2023

Spending three weeks away has taught me a lot about myself and my property journey.

Here’s what I’ve learnt.

From wired, tired and frazzled, to recharged, rejuvenated and refreshed.

The importance of reflection, gratitude and rest is fundamental to our growth and development. I came away feeling guilty and irresponsible when I knew I had so much to do at home with my property business and my other business.

As my three weeks away comes to an end, I’d like to share some of the highlights of finding time to reflect, recharge and regroup.

I now see the value in just how important it is to get away, refresh, regroup and focus on your processes.

A great coach whom I’m working with at the moment, Tony Meredith, has a great saying which is, “focus on the process, not the results.”

I now get it.

My entire journey has previously been to focus on the results, the end game, the money in the bank so to speak, but I’d like to share with you upon reflection and advice from my coach that the "process is what matters most".

Learning along the way, overcoming the challenges, the heartache, the frustration, the despair, having to find the grit to keep pushing on when things were going against me means more to me today than the cash in the bank. By investing in the process today we set ourselves up for success and growth tomorrow.

Yes, the money is great but the growth upon reflection trumps all of that. Who we are today is not who we’ll become tomorrow.

We are either ripe and rotting or green and growing. In other words, we need to always be challenging ourselves. As humans, we have the capacity to experience growth and it’s one of the greatest human traits I know of.

Throughout my processes, I’ve learnt to become more focused, more responsible, more flexible, I’ve learnt greater leadership skills and have become more appreciative of the good times.

The challenges sucked whilst in the midst of it I am not going to lie, but upon reflection, I have now found those times to be the source of where I’ve drawn my greatest inspiration.

I hope by sharing my journey I can provide a voice or a new way of thinking for those who are struggling at the movement on their property journey, or any journey for that matter.

We’ve all experienced challenges such as Covid, price increases, labour shortages, cost blowouts etc but I believe this has made us all the more resourceful, more creative and more determined to push on. I say to anyone finding it hard right now to stay on track “hang in there little soldier, your growing as a person through all of this.”

It’s only now upon reflection that I can grasp in detail the concept of growth and development.

As a community, we are stronger as one. I’d like to thank my mentors, Tony Meredith, Tony Meredith Coaching Jason and Amy (JAMY) Think Property Club and Rob Flux Property Developer Network. You guys all give so much to your tribe. Thank you for leading the way.

As Winston Churchill said, “if you’re going through hell, just keep going.” Move forward every day being grateful for the challenges, grateful for the learnings and grateful for the opportunity to be part of this amazing industry no matter what the challenge.

Yes, it can be tough but the payoff of living beyond your comfort zone is having prosperity and abundance and the potential for living a life of endless possibilities.

Enjoy every minute, reflect as much as you can and always try and find the growth or opportunity in any challenging situation, for this is where the rubber meets the road or another way of saying it is, this is where the growth happens, just a few inches out of your comfort zone.

On behalf of Woodstone Developments, I’d like to wish everyone a great year full of growth, learning, prosperity and remember to focus on your processes, more than the result.

Keep going soldiers, stay STRONG and don’t forget to find time for reflection, finding gratitude and seeking rest.

16/12/2022

What a great way to finish the year. Next project locked and loaded.

Can’t wait to share the journey of this project as it comes to life.

Future site for two luxury high end homes with huge upside.

Thank you KYABEL for finding this one. Couldn’t be happier.

09/09/2021

The Boston. Loving the sleek design coupled with the subtle industrial theme. Check out the beautiful living space and open alfresco dining space.
Construction now underway.

08/09/2021

Getting ready for sale. The Aspen. Opulent luxury only five minutes from the stunning beaches of the South Coast of NSW and less than 90 minutes from the heart of the Sydney CBD. For pre-sales inquiries contact Grant Iverson 0416 548 506.

08/09/2021

The combined living space at our upcoming development The Aspen stylishly combines comfort and sun-soaked spaces into this beautiful townhouse. Luxury South Coast living at its finest.

Woodstone Developments

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