Developer Feasibility Analysis

Discussion in 'Introductions' started by Jase.Bell-Davey, 3rd Feb, 2019.

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  1. Jase.Bell-Davey

    Jase.Bell-Davey New Member

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    Melbourne
    Hi All

    New here and keen to learn. I have a 3 properties under my belt already. Good earners and overall nearing cash flow positive and all with excellent Capital Growth.

    Looking to take the next step and have an opportunity to keen to develop an existing property into a Multi Unit development.

    I am starting with a feasibility analysis and would be interested to get any feedback on what I have put together. Link here: Feasibility Analysis Jan 19.xlsx

    I haven't done this before and I am sure I am missing some costs. That said its not designed to be comprehensive project budget sheet, just something to determine if the project stacks up and warrants further due diligence.

    Would love any feedback from anyone out there with experience in this area.

    Thanks all

    Jason
     

    Attached Files:

  2. Sackie

    Sackie Well-Known Member

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    Assuming your numbers are relatively accurate, doesnt stack up in terms of return on TDC imo.
     
  3. Jase.Bell-Davey

    Jase.Bell-Davey New Member

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    Hi Sackie.

    Thanks for the reply. No the figures are just indicative and need some work still. It was more about the content and trying to determine if I had missed off any major costs.

    Thanks again

    Jason
     
  4. Sackie

    Sackie Well-Known Member

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    Contingency looks light. What about architectural and engineering fees. Da fees.
     
  5. Jase.Bell-Davey

    Jase.Bell-Davey New Member

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    Perfect. Thanks. I had missed those out. Will add them in. I did have contingencies at 5%. Will move it back to that level. Thanks for taking the time to have a look.
     
  6. Coxy89

    Coxy89 Well-Known Member

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    Would add some more line items around design/town planning depending on site. Hydraulic reports, town planning, infrastructure charges are a killer too. Check the local council website for accurate lodging/assessment fees and infrastructure charges.

    You should also map out a cashflow forecast for the project based on typical draw down percentages for construction loan this would reduce the amount of interest paid throughout the project and may affect feaso.

    5% contingency for sure.

    GST looks like its the margin scheme but missing out on adding back in GST credits from input costs. This will reduce GST paid.
     
  7. Jase.Bell-Davey

    Jase.Bell-Davey New Member

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    Melbourne
    Thanks so much for the detail with that. Have since up'd contingency to 5%. Didn't think about GST credits either.

    I will definitely work in something with the cashflow and a percentage based structure for interest taking into account progressive draw down of construction loan.

    Thanks again Coxy89. Super helpful
     
  8. jefn89

    jefn89 Well-Known Member

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    Location:
    Sydney
    Hey Jase,

    Good on you for joining and I'm at a similar position to yourself, only with the 1 property but keen to accelerate the process..

    Will take a look at your feaso and give some feedback but would be keen to hear more about your journey!