This options see’s us partnering with a developer. It will be about finding a developer who is open to partnering with you (the land owner) and splitting the profits based on an agreed percentage. You effectively put the land up as your contribution and the developer covers the build, DA and marketing spend. We work with a property lawyer to prepare the development agreement and both parties sign off on this, to begin with. You will effectively receive the value of your property plus any profits from the sale of the development at the conclusion of the project. It’s a longer lead time and with that comes greater risk, but greater reward.
Below we break down the costs to give you an indication of how this option looks.
Here we break down this option and provide feedback on the good and not so good.
Minimal out of pocket expenses
Greater profits in comparison to the other two options
Long lead time before you receive any money
Uncertainty of the sale of new dwellings
No control over the design and final outcome. Developers will want to take full control and management of the process. You will be treated as a silent partner only
Potential that the development falls over and you are back to square one
A developer will most likely want a discounted price if they were to take a joint venture approach.
Like everything we do, we present out of the box options that ensures you think about all the options. This option is really dependant on your appetite for risk and thirst for additional revenue. It comes with greater risk and longer lead times, but if you can ride out the wave, the potential return is far greater than the other two options. In saying that,
We can’t provide a direct recommendation on this options, as it is really dependent on your appetite for risk. We have simply provided all the numbers and timings for you to make an educated decision.
* Milk Chocolate price data used on this website is sourced and relies upon information supplied by a number of external sources (including governmental authorities). This data is supplied on the basis that while Milk Chocolate believes all the information provided will be correct at the time of writing, it does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by you, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information on this website through any cause whatsoever and limits any liability it may have to the amount paid to the external sources for the supply of such information.