Doing a thorough feasibilty requires high quality data inputs.
These are some of the costs associated with a typical residential development.
Land Purchase Price
Stamp Duty
Finance Application Fee
Conveyancing cost
Pre-Purchase Reports
Survey
Soil Test
Architect/Designer/Drafts person
Structural Engineer
Civil Storm water Engineer
Traffic
Arborist
Landscape Designer
Construction documentation
Other Reports
Project Management fee
Subdivision cost
Council Application fee
Council Contribution Fee
Electricity fee
Drainage fee
Demolition
Build Cost
Landscaping
Driveway
Fencing
Letterbox etc
Marketing costs
Agents Fee
Legal fees
Interest rate
Holding cost for Land
Interest on Construction loan
Resale Value
Profit
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.
