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

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.

 

 

 

 

Tags:dual occupancy,retirees income,cash poor retirees

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