Feasibility template

[Spicy McHaggis]

Can anyone point me in the right direction for some example feasabilities?
I am thinking about doing a small spilt and build in WA and want to start off by crunching numbers on properties I look at.

Looking at some examples would be really helpful.

Are there any good web pages, software or books?

 

[redwing]

Somone here may have a great spreadsheet they can attach if not try Feastudy

metropoleprojects/UnitFeasibility is also worth a look

 

[Spicy McHaggis]

Thanks for that I will check it out

 

[Spicy McHaggis]

I was looking up feasibility not flea study which makes a difference

 

[Spicy McHaggis]

Feastudy!
Bloody spell check

 

[redwing]

Feastudy!
Bloody spell check

There should be PDF examples

 

[Spicy McHaggis]

Spreadsheet

So I have had a go at making a spreadsheet for feasibility calculations for purchasing a property, splitting off the back half, building a single dwelling.

Here is the link

https://drive.google.com/file/d/0B_V-lu-oZexKUHo0M2hUanNIRzQ/edit?usp=sharing


Have I missed anything??

 

[Spicy McHaggis]

I just made up the figure which are in there.

 

[mflying]

You are missing following calculation in your spreadsheet.

holding cost
legal (buying and selling)
contingency

 

[Spicy McHaggis]

Thanks for that

 

[Spicy McHaggis]

I will add those figures and repost as a working spreadsheet

 

[SB25]

Hi,

As a suggestion - typically with an analysis like this you'd start at your GRV/GDV and work backwards to ascertain what the site (house) should be worth to purchase in order for the project to stack up.

Try googling Residual Land Value Template for samples?

This is probably the method that the bank's valuer will adopt if you're seeking funding on a development basis.

Cheers

 

[Scott No Mates]

Try googling Residual Land Value Template for samples?

This is probably the method that the bank's valuer will adopt if you're seeking funding on a development basis.

Cheers

Use the rlv model backed by the more robust dcf which leaves no room for error.

If the results vary dramatically, you're wrong. I prefer to use the dcf.

 

[Spicy McHaggis]

OK
At risk of sounding like a 1st grader and ****

what is dcf, GRV and GDV??

I tried googling residential land value template but didn't come up with much.

 

[Spicy McHaggis]

Gross rental and Developed Value?

 

[chindonly]

Discounted cash flow, gross realizable value / gross development value?

 

[mrdobalina]

I wonder why holding cost is regarded as a cost when calculating project feasibility. Using the dcf method, the holding cost is an interest cost, and is not a cashflow item. It is used to determine the weighted average cost of capital (i.e. required rate of return).

 

[Sequin]

Have you included developer contributions/infrastructure charges? In Queensland the maximum that a Council can charge, including water and sewerage, is $28,000.

 

[Scott No Mates]

I wonder why holding cost is regarded as a cost when calculating project feasibility. Using the dcf method, the holding cost is an interest cost, and is not a cashflow item. It is used to determine the weighted average cost of capital (i.e. required rate of return).

When using a dcf model, you do not include interest, all figures used are today's values ie purchase cost, fees, stamp duty, design, building, S94, selling fees, legals etc. Your discount factor (risk, inflation, interest) picks up the rest.

 

[mrdobalina]

When using a dcf model, you do not include interest, all figures used are today's values ie purchase cost, fees, stamp duty, design, building, S94, selling fees, legals etc. Your discount factor (risk, inflation, interest) picks up the rest.

Agree. That's why I am asking why holding cost is regarded as a cost in the other methods.

(to answer my own question: because it is another method).