Author: Ben Frietlander

Property Development Due Diligence – Neighbour Consents

In our previous blog we explored key factors property developers should consider when undertaking pre-purchase due diligence. In this blog, we revisit some of those concepts with a particular focus on neighbour consents and approvals. In our experience, neighbours will object to having a development occur in their back yard. This is not surprising as […]

Property Development Due Diligence

Thorough due diligence is an essential risk mitigation strategy that all purchasers need to undertake before acquiring a property. For developers, it is an opportunity to test a project’s viability and identify key risk items that may impede or prevent a project’s completion. Due diligence should include an investigation of both the physical and ‘paper’ […]

Property development fund flows and sector risk

By now, most property developers will be well aware of the credit crunch sweeping through the development finance sector. With limited funds at their disposal, development finance lenders are allocating funds on a preferential basis with a focus on existing client relationships – at the same time, lending criteria is adjusting. Lower LVR’s and higher […]

Macro forecasts and credit availability

NZ’s largest financial institutions including the RBNZ, Treasury and most major trading banks provide forward guidance on NZ house prices as well as wider-ranging macro forecasts for the housing market. While such predictions make for good reading, they are of limited use when making investment decisions. This is because macro forecasts typically fall into one […]

Navigating a Construction Boom

Property development has been thriving over the past 12 to 24 months. Low interest rates and insatiable demand for housing (from investors and owner-occupiers alike) has spurred one of the most significant construction booms since the 1970s. The industry that was hit hard during the GFC appears to have now fully recovered with a strong […]

Residual Valuation Method – What You Need to Know as a Property Developer

Valuation is a critical skill that all property developers need to learn. Basic principles of valuation are used when putting together a project feasibility, which is the starting point for many developers when assessing the viability of a new project. The resulting feasibility will dictate the price one can pay for the land, based on […]