Have clarity and confidence

Typically, if the builder goes broke the homeowners warranty comes into play. But with Development Exchange there is no need to worry. We work with a collection of highly successful and reliable builders and if for any reason there is a need to change builders, we take care of it all.

In the unlikely event Development Exchange went bankrupt, all owners are safeguarded thanks to our unique performance bond. All projects are 100% protected by the unique performance bond, which is managed and held by independent APRA-accredited insurers. The bond provides owners their initial ingoing equity value, which in many instances is the same value that would be achieved if you were to sell your property in the current market. You can rest easy that your assets are safeguarded from the get-go.

When you enter a contractual agreement with Development Exchange, we refinance your existing mortgage and take care of all repayments from construction commencement through to final sale. As the property owner, you retain ownership of the property and sign a standard mortgage document with Development Exchange.

As the owner, you have no obligations, aside from signing the development contract, mortgage paperwork and unique performance bond agreement. Development Exchange covers all the costs of the Development Application (DA), the actual development, construction, mortgage and any other associated costs, including sales and marketing. There is no need for owners to show any financial capacity, be required to borrow any funds, or hold liability to incur any costs directly.

The landowner is one party, Development Exchange is another, and the third party is a bond provider, confirming Development Exchange's capacity to settle the bond. If the conditions allowing the bond to be called into play occur, the landowner notifies both Development Exchange and the Bond provider. The Bond provider will settle the agreed amount directly with the landowner.

A first offer document outlining the project scope will be provided. If accepted, three contracts are then issued; the development contract, the mortgage paperwork and the unique performance bond documentation We suggest owners have their accountant and lawyer review the documents. When contracts are signed, we will reimburse owners for the costs incurred to have the documents independently reviewed.

The landowner can choose to receive a monthly rental stream, or receive a lump sum upon conclusion of the redevelopment. All costs are taken care of throughout the development once Development Exchange issues a vacate notice, so there are no interest or holding costs incurred by the landowner.

Yes, Development Exchange covers the loan and replaces it with a new mortgage for the same amount (including any break fees). There is no cost to the landowner and Development Exchange arranges it all.

Tax payable on the return from the development is subject to several factors. If the property has been held for longer than 12 months, a CGT discount may be available. If a portion of the property is retained as part of the development, the cost base may be able to be rolled into the retained asset, therefore deferring the tax payable until the future sale of the retained development is sold. Development Exchange doesn't provide individual tax advice and we recommend each customer seek advice from their financial advisor/accountant to discuss the best possible scenario, based on their personal situation.