Feasibility Study

[gus1970]

We are weeks away from receiving a DA for a 7 lot subdivision. I understand that prior to seeking construction finance we will need to develop a feasibility study for the project.

We understand that there is software available for purchase but does anyone know of organisations that can prepare a feasibility study on our behalf and approximately what that would cost or are there free templates available?

Thanks in advance

Gus

 

[Aimjoy]

We understand that there is software available for purchase but does anyone know of organisations that can prepare a feasibility study on our behalf and approximately what that would cost or are there free templates available? Thanks in advance
Gus

Gus,

This may?? answer your question but try:
http://www.devfeas.com.au/ and click on the Consulting link

No commercial / personal relationship - just know they exist.

Aimy

 

[Qlds007]

Gus

Having done many a subdivision in Brissie one thing to make sure before you go and spend your hard earned is that the your financier will accept the feasability study from whoever you appoint.

Some Development lenders will want their own and you maybe able to save a bob or two by finding out up front who they use and recommend.

 

[pi2012]

Sorry to bug in. Since we are on the subdivision topic, we are also in the same processs but just wondering if we need a Feasibility Report for a 3 Unit subdivion in VIC.

 

[Spectre]

I'm pretty sure I might have a guy for you - i forwarded him the link as (shockingly) he isnt a ss member... will update this post when he comes back to me

Edited bit as a cut and paste
If they want a Development Cost Estimate then we can do that at JF&P Consulting Engineers, 3844 7161, as we oversea all aspects of development and can cover all costs. What JF&P don’t do is the whole of life cost and cash flows for the development.

 

[grossreal]

hi gus1970
I have devfeas 6 (I think thats the latest)and its fine for most lenders cost about 600.00 and is very handy and they give free advice to assist.
you can try free versions of anything put to go to lending especially on commercial you do need to present alot more then just a development spread sheet but this is a good start.
I also don't have any financial in the company bar bought the product.

 

[gus1970]

hi gus1970
I have devfeas 6 (I think thats the latest)and its fine for most lenders cost about 600.00 and is very handy and they give free advice to assist.
you can try free versions of anything put to go to lending especially on commercial you do need to present alot more then just a development spread sheet but this is a good start.
I also don't have any financial in the company bar bought the product.

We received DA approval yesterday!!!!! What a relief! From the day we decided to buy the land until consent it has been almost 18 months. Council have been the biggest pain taking 10 months. But at the end of the day we achieved the DA and can now move forward.

Thankyou for all the responses. Advice from our potential broker is that the lender will not get involved in who prepares the feasibility as this is the starting point. He believes the quantity surveyor and valuer who will confirm all the numbers.

I am discussing this further with our surveyor who believes that now we have the DA we can put the development to tender to get an idea of exact construction costs (although we already have a good estimate) and talk to a valuer (probably one the bank/broker recommends) to get a reasonable estimate of the likely value of the lots. I have been talking closely to our RE agent about this already so we have a pretty good idea about likely sale prices.

I can see the benefits of feastudy when you are assessing the feasibility of the project right from the start but we ended up doing that the hard way and luckily it all added up and we should end up with a great return. I also see the value using it for the life of the project so we still may end up purchasing it yet. Out of interest is there any good reasons why we shouldn't buy it? How much would it cost to have someone prepare a feasibility study for us?

Hopefully it is smoother sailing from here on in.....