Case Studies — Development Exchange

Unlocking the hidden equity potential in your investment property through land development.

Backed by secure lines of funding, underwritten by industry-benchmarked property insurance and supported by hard market intelligence, Development Exchange is a development partner with a difference.

We work with you to redevelop your investment property* to ensure it yields above-average returns when sold, meanwhile protecting your capital. At worst, you walk away from the project with the mutually guaranteed market value of the property - meaning you’re never going to end up with less than you started with.

*You must have at least 20% equity in the property.

How it works

Step 1 – Evaluation

A Development Exchange partnership is right for you if you have at least 20% equity in the property and if any of the following applies. You have an investment property:

Yielding less than it should
Zoned for more than one dwelling and uncertain how to best redevelop it
You’re thinking of selling to free up some capital and want the best possible result
Requiring costly remediation work to make it market ready and/or
Purchased in an elevated market and now looking for a sound debt minimisation strategy to avoid making a loss

Step 2 – Assessment

Development Exchange specialises in unlocking the hidden equity potential in your investment property through land development. Our team will assess your property for redevelopment potential (taking into consideration the level of equity you have in the property - you must have at least 20% to apply - local council regulations, land zoning and the overall property market). Once the assessment has taken place, the team will present a comprehensive feasibility study and financial offer which could earn you approximately 30% or more on your property.

The feasibility study and financial offer is backed by Development Exchange’s very own unique ‘performance bond’ - for added security and peace of mind - providing you with a guaranteed minimum investment return, which in many instances is the same as the value you’d achieve if you were to sell your property on the market today.

Step 3 – Development & Management

Once an agreement has been reached to redevelop your investment property, Development Exchange will take care of the complete development cycle; from planning, council approvals, surveys, legal, design, engineering, financing, subdivision, construction and development. Covering all development costs, and taking on all the risk, there is no downside when you develop with Development Exchange.

Step 4 – Settlement

Upon the completion of the development and settlement, Development Exchange will provide the cash return to you as per the financial offer; the only risk is not knowing exactly how far in the black your return will be.

Get in touch with us today to find out how you can redevelop your investment property, earn a great return and protect your downside.

Is Development Exchange Right for You?

Our team is passionate about helping people build intergenerational wealth in the property market. Here is how we can help build wealth, meanwhile protecting your downside:

Scenario 01
Tim and Liz have 20 properties in their portfolio, with some in need of major remediation work to make them suitable for lease or sale, which will require a significant investment. Before engaging contractors to undertake this mammoth task, Tim and Liz take a step back to assess the properties that need the most amount of work and consider what potential they have for development - liaising with the team from Development Exchange to uncover the hidden wealth those properties might hold.

Scenario 02
Michael has a large factory on the city’s fringe with asbestos roofing. His choices are a) spend $250,000 plus updating the roof, or b) explore redevelopment, with potential for ground floor commercial space and units above. The old industrial area could be severely undervalued and underutilised, Development Exchange targets a 30% increase in returns which could exceed the factory’s current returns or future result.

Scenario 03
Danny and Alex’s rental portfolio has properties experiencing a gradual decline in returns. The potential bills add up quickly when calculating the price of new air-cons, paint jobs, general maintenance, repairs and inflation etc. How do they guarantee wealth without relying on each property’s growth? They contact Development Exchange to explore options for maximising their portfolio wealth.

Scenario 04
Cherie has 10 properties in her portfolio, - two of which are severely underperforming. Instead of letting the problematic properties further hinder the success of the portfolio as a collective, Cherie approaches Development Exchange to find their hidden value. Upon a thorough evaluation, Cherie agrees to redevelop and achieves up to a 30% return on each property.
Scenario 01
Tony has agreed to redevelop a property with an agreed market value of $2 million. The market turns and Development Exchange prepares a Development Application to redevelop, but decides not to proceed with the redevelopment, instead listing the property for sale. After only receiving offers of $1.8 million, Development Exchange sells the property and provides the difference of $200,000 to Tony. Throughout the process, Tony was comforted by the knowledge he was safeguarded against all losses by Development Exchange’s performance bond.

Scenario 02
Max and Kerry partner with Development Exchange on a new project and agree on the property market value. Unfortunately, the builder goes bankrupt and Development Exchange has an insolvency issue — no one is working on the project and the site goes into ‘lockup’. Max and Kerry, while disappointed not to see the project through, are able to cash in their performance bond and walk away with the initial agreed upon market value of the property. Not only does this performance bond provide Max and Kerry with a guaranteed minimum investment return - which in many instances is the same as the value you’d achieve if you were to sell your property on the market today - there is no legal fight, nor will they need to suffer through a laborious administration process to recoup costs.

Scenario 03
Gwen is looking to build wealth, but is wary after a bad property development experience in the past. Previously the developer went bankrupt, forcing Gwen to sell the property below fair market value and owing money to various trades and services. Development Exchange explained they eliminate that risk through their exclusive performance bond, which is backed by an APRA-regulated entity. If they become insolvent or an asset is compromised, Gwen has peace of mind knowing the insurer will pay her the agreed upon fair market value originally stated in the contract. Regardless of Development Exchange’s financial situation, Gwen is protected against the worst-case scenario.
Scenario
Steve purchased a home 12 months earlier in an elevated market and is leveraged to his limit with interest rates rising. Instead of continuing to be stressed making the minimum mortgage repayments, Steve contacts Development Exchange for help. They explore a development to help build Steve’s wealth while minimising the debt.

Project Examples

Development Exchange is your partner in building wealth. We will help you achieve your property goals via solid knowledge, trusted expertise, a straight forward system and seamless processes. Get a glimpse of what happens when you choose to partner with us: