Traditionally it’s an alternative course of action that may be taken if the original plan fails.
When it comes to property development and town planning, a fallback position is your alternative option should your development application or planning permit be refused.
In this video, Colin Fragar, our founder and CEO, highlights the reasons why you need a fallback position whenever you purchase property for development.
Click on the “Play” button below to watch now:
Or for those that prefer to read, here is a transcript of the video…
Whenever you purchase a property, you need to have a fallback position. My name is Colin Fragar. And for this property that we’re standing on today, the fallback position was a granny flat or a secondary dwelling.
However, we did our numbers based on it being a Dual Occupancy subdivision.
Why is it important to have a fallback position?
Because the Council approval process is quite difficult, it is uncertain. And even though the law is certain, it can be interpreted in different ways by a different assessing officer. So there’s no 100% guarantee that you are going to achieve council approval for what you want. However, that’s where the money is made. To make a return, you’ve got to take a risk. And your job is to minimise that risk.
Because the council approval process is quite difficult, it is uncertain. And even though the law is certain, it can be interpreted in different ways by a different assessing officer.
How do you minimise the risks?
To minimise the risk, I highly recommend you have that certified town planner by your side to be able to fully assess the project to work out what the development options are. At the Council Approval Group, we have trained people who do this every single day of the week. And we’ve now literally done over 20,000 projects.
So a fallback position may be as simple as a granny flat or a secondary dwelling. But a fallback position might also be well, what if I need to sell it? What’s the worst case scenario and can you live with that? Chances are, even if you just buy a property and you hold on to it, the market will rise and you’ll be able to sell it at a profit.
If you’ve got a project in mind and are ready to take the first step in discovering your development options (and your fallback position!) book in a free consult today to chat to one of our experienced property consultants.
Article Last Updated: 28 June 2024