1st Industrial Property Development - Feasibility Study

Discussion in 'Development' started by AndrewH, 21st Jun, 2017.

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  1. AndrewH

    AndrewH New Member

    Joined:
    20th Jun, 2017
    Posts:
    2
    Location:
    Bathurst NSW
    Hello, I'm a builder looking at doing 1st industrial property development project and wondering if someone can share or point me to feasibility calculator or template, being new to this I would be grateful for any help I can get.
    Cheers,
     
  2. Gavin Ng

    Gavin Ng Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    198
    There's software you can get, estate master and the like. Otherwise, back of the napkin type feasibilities you can do them working backwards:

    Gross realisation -(minus) profit margin - disposal costs - agent fees - legals/advertising - borrowing costs over land acquisition - stepped borrowing costs over the construction costs - construction costs - any section94 or developer levies - site acquisition costs = offer price for development site.

    This is very rough and probably not every consideration needed in a feasibility analysis. I'm sure others could give more tips.
     
    Tom WU likes this.
  3. AndrewH

    AndrewH New Member

    Joined:
    20th Jun, 2017
    Posts:
    2
    Location:
    Bathurst NSW
    Thanks, Gavin, I'll have a look at estate master and run some calc's as per your suggestions
     
    Gavin Ng likes this.

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