Town Planner Reveals: 8 Key Tips For Obtaining Development Approval (Part 1)

Categories: Strategies

You are about to read a short blog post that can save you from a property investing disaster.

So please pay attention to what I’m about to say. It is deceptively simple…

…especially if you’ve done “the subdivision dance” before and have a few runs on the board.

You see, I’m about to reveal something you probably already know… but some of my readers don’t. And besides, it never hurts any of us to take a quick “refresher course” from time to time.

Especially when most mistakes experienced investors make are caused by things they’ve already learned… but somehow forgotten!

So here’s my question:

Do you know the #1 killer of subdivision deals?

Even if you are completely and utterly new to property investing – you’ve probably heard that in order to complete a successful, profitable subdivision (the kind that leaves you with a smile on your face and many more dollars on your bank statement)… you need to jump through A LOT of hoops.

And the most significant and confusing hoop of all is…

Obtaining development approval from Council!

Acquiring that approval is the difference between developing a profitable subdivision and being stuck with a block of dirt that doesn’t earn you a cent.

We wouldn’t want that now, would we?

So I reached out to my friend Craig Christie, an award-winning town planner and owner/director of ASI Planning. And as it turns out, there are a eight specific things things you can do to make sure the paper shufflers at your local council don’t turn your dream subdivision into a financial nightmare.

This is Craig, by the way:

Today’s post is the first of a two part series with Craig where he reveals his eight key tips for acquiring the key for a a “money-in-the-bank” subdivision… the coveted development approval!

1. Hire a qualified town planner

There are two main hurdles to completing a successful subdivision, Craig said.

The first hurdle is the development approval from Council. Seasoned property investors know that time is money, and town planners can help you efficiently navigate the development approval process.

Sometimes, Craig said that Council will grant a conditional approval, meaning that the development application will be approved if the property investor does certain things such as:

• Demolish an existing structure
• Put in connections
• Add driveways
• Pay contributions and
• Provide services.

Town planners are usually very familiar with these conditions and can help property investors to anticipate them. “We don’t usually get surprises with conditions, but it does happen sometimes,” Craig said.

A qualified town planner will not only be up to date on the latest planning schemes, conditions, zoning and codes, but he or she will also have inroads with Council and a stellar reputation.

Hiring someone who Council enjoys working with can reduce the likelihood of delay in the approval process. And, the more connected your town planner is with Council, the sooner he or she will find out about changes and reinterpretations that may be relevant to your project.

“Whether the changes are good or bad for your project, it’s best to find out about them as soon as possible,” said Craig.

Town planners can also assist clients with the second major development hurdle, which is plan sealing and registering new titles. Although it is less common for town planners to provide this type of assistance, Craig’s firm tailors the services they provide to the specific needs of each client.

2. Be aware of the risks

Subdivisions have the potential to create lots of wealth, but there is always some risk involved, Craig said.

That’s why he makes sure his clients understand the risks of any subdivision project so they can make the most informed decisions.

After finding out basic information about the property and doing some searches, Craig said he can tell clients whether or not their subdivision is likely to be approved and highlight any areas of concern.

Sometimes, Craig recommends meeting with Council before submitting the development application to discuss any issues, which reduces the risk that the application will be held up or denied.

Your town planner can also provide sound advice on whether or not you can attempt to “bend the rules” with Council, Craig said. Sometimes, if you are one meter short of the required lot size, for example, Council may be willing to make an exception to the rules, Craig said.

However, Craig cautioned that nothing is guaranteed when it comes to Council approval, so property investors should be sure that they understand and are comfortable with the level of risk before moving forward with the project.

“Even if they are doing the same thing next door, don’t assume that you can do the same thing with your property,” Craig said. “This could expose you to huge risks and cause you to make a big mistake.”

3. Respect your town planner

Your town planner is a critical component in your property investment strategy. However, it is important that property investors understand the value of a town planner’s services and respect their time, Craig said.

Your town planner should provide some information for free about whether your chosen subdivision site is viable. However, Craig noted that a big pet peeve for town planners is when clients demand lots of free information without following through with a paid project.

“At my company, the first call is always free,” Craig said. “If things look good after that, we can discuss moving forward and doing a quote.”

Property investors can also help a town planner provide the best, most-efficient service by being concise and providing important information promptly.

When a client calls about a subdivision, Craig said it is helpful if they tell him upfront what their goals are for the project. For example:

• Immediately knowing where the client wants to put the driveway,
• How they want to split the lots,
• How many units they want to create and
• What they plan to do with existing structures can save a lot of time down the road, he said.

And, although this might sound obvious, property investors also should pay attention to what a town planner has to say so he or she doesn’t have to answer the same question five times.

I want to teach people, but they have to listen to what I say,” Craig said.

Like most professionals, town planners especially enjoy working for clients who are grateful for their expertise and don’t take advantage of their willingness to help and provide education.

By cultivating a quality professional relationship, your town planner can become a trusted member of your team for years to come.

4. Learn from your town planner

Because your town planner will be a key member of your subdivision team, it is important that they are a patient and willing teacher.

Nine times out of 10, a subdivision deal won’t work,” Craig said. “But property investors can figure this out on their own by making a few simple checks.”

Your town planner should be committed to teaching you how to perform simple checks yourself so you can apply that knowledge to your next deal.

Craig said that there are a couple things property investors can do before calling their town planner, including:

• Learning about the area and obtaining general information on minimum land areas, lot sizes, basic subdivision parameters and zoning.
• Finding out about the property specifics, such as zoning, land area, lot width, contours and slope of the land.
• Conduct a Dial-Before-You-Dig search to find out the location of important infrastructure.

“I will show my clients where to look for information,” Craig said. “I am also in the process of creating some webinars with checklists that clients can complete themselves to help them save time.”

As property investors become more familiar with subdivisions, they should begin to anticipate some of the questions that come up with each project, such as:

• Setback,
• Lot size and
• Easement positions.

If a property investor has projects in front of the same council regularly, he or she should begin to know the answers to those questions, too.

Risk management, quality education and cultivating a team of experts that includes a qualified town planner are major assets when developing a subdivision.

Coming Up In Part II

Stay tuned for Part II of this post coming up next week, where Craig discusses the important role of talking to the right people, confirming information, understanding costs and problem solving when pursuing your subdivision project.

For more information about developing a profitable subdivision, Craig also recommends that his clients check out the Property Resource Shop Subdivision Mega Pack, which includes tips and tools to help you make your subdivision project a success.