Feasibility: What are the costs to be itemised?
Doing a thorough feasibilty requires high quality data inputs.
These are some of the costs associated with a typical residential development.
Land Purchase Price
Finance Application Fee
Civil Storm water Engineer
Project Management fee
Council Application fee
Council Contribution Fee
Holding cost for Land
Interest on Construction loan
Here are two examples .
The first is a townhouse development comprising of 3 units built to a mid level finish. Subdivision costs of $45,000 has been allocated.
The second is a larger development of 14 units with town planning approval in Doncaster. The asking price for the land with planning permits was ascertained to be high to meet developers margin expectations. The developer did not proceed with acquisition.
Feasibility Study Case 1 Three townhouses in mid ring suburb of Melbourne
Feasibility Study Case 2- 14 units approved. Developer considering purchasing.