Finance question
Will a development loan cover soft costs like DA fees and consultants?
Usually not up front. Council fees, architects, engineers and reports are paid in cash before a construction lender signs, so they count as your equity rather than the lender's debt. For a duplex they run about $48,000 to $157,000, and a first-time developer is typically asked for 25% to 35% of total project cost as equity, subject to lender assessment.
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The short answer
Soft costs are paid first, so they come out of your equity
Before construction starts, a developer pays the council, the architect, the engineers, the town planner, the specialist report writers and the quantity surveyor. Those cheques come before any construction facility exists, so they are funded from cash or a loan secured on a home or investment property you already own. Lenders still count them as project cost, which means paying them lifts your contribution toward the equity they ask for. The build itself is then funded against the approval, the quantity surveyor's cost report and a signed builder contract.
How big are they? From our development soft costs guide, using published fee schedules and guide ranges: a duplex needs about $48,000 to $157,000 and six townhouses about $134,000 to $452,000, roughly 2% to 7% of total development cost. The council fee is the smallest line. Brisbane's base fee for up to two dwellings is $9,150 in 2026-27, while the architect, at about 2% to 8% of construction cost, is the largest. The same guide has a lender's quantity surveyor initial report at $3,000 to $10,000, and a first project asked for 25% to 35% of total project cost as equity.
Some of the costs come later and can be rolled into the facility. Progress inspections by the quantity surveyor run $500 to $1,500 a visit during the build, and finance and selling costs sit inside total development cost. Ventas is a broker across 40+ lenders, not a lender, and there is no upfront fee to you. We work out how much equity you need and where it can come from, including property you already own.
Do you qualify?
What a lender wants before it issues terms.
Planning approval
An issued DA or permit is stronger than a lodged one.
QS cost report
An independent quantity surveyor certifies the build cost.
Fixed-price contract
A licensed builder on a fixed price. Cost-plus is rarely accepted.
Equity and track record
25% to 35% of project cost for a first project.
Why counting soft costs as equity helps
Spend counts toward the gap
Soft costs paid in cash lower the equity still needed at first draw.
Property can fund them
A loan on a home or investment property can cover consultants and fees.
Quotes remove the spread
A signed architect fee proposal narrows a wide percentage range.
A worked example
A first-time developer plans a duplex with a total development cost of $2.5 million. Soft costs of $48,000 to $157,000 are paid in cash first. At 30% equity the developer contributes $750,000 including those costs, and the senior facility at 70% is $1.75 million. The soft costs come out of the $750,000 rather than adding to it. Illustrative only.
Common questions
Frequently asked questions
Do I pay soft costs before the loan settles?
Yes. Council fees, consultants and reports are paid before any construction facility exists, from cash or a loan on property you own.
How much are DA fees compared with consultants?
The council fee is the smallest line. Brisbane's base fee for up to two dwellings is $9,150, while architect and engineer fees run into tens of thousands. The architect is the biggest line.
Do soft costs count toward my equity?
Usually yes. Lenders count them as project cost, so paying them lifts your contribution toward the 25% to 35% most first-time developers are asked for.
What does a lender's quantity surveyor charge?
An initial report for the lender is about $3,000 to $10,000 depending on project size, paid by the borrower once the lender decides to proceed.