Use our feasibility calculator to assess the financial feasibility of purchasing a property development site
Use our feasibility calculator to assess the financial feasibility of purchasing a property development site
Use our feasibility calculator to assess the financial feasibility of purchasing a property development site. This tool provides crucial information for anyone considering a development opportunity.
Our feasibility calculator is broken up into three sections:
This includes the cost of the land, stamp duty and any legal costs associated with the transaction.
These are all the pre-construction costs you must be aware of in order to achieve the projected design intent of the project you are assessing on the allotment.
This refers to the total building contract cost, which consists of actual building work, demolition and site clearing costs and contingencies. It is crucial you are selecting an honest and experienced builder prior to even considering your development as these costs generally contribute the largest portion of the project – you need to be sure you are assessing this accurately.
These costs relate to water, sewerage, storm water, gas, electrical & telco requirements. These are contributions that are paid to service providers outside of the titled allotment and are necessary to bring the infrastructure required to service your dwelling.
Every home or general single allotment will always have a single gas, water or electrical connection, however when developing 5-10 townhouses for example, these services must be upgraded to facilitate the development requirements. These fees play a key part in not only understanding how you’re going to service your proposed development, but what the proposed costs of these aspects are. This must be researched correctly and it’s crucial to have clear and precise advice on this. Authority and service fees also includes your building permit costs.
These costs are noted here for the period in which you are holding the actual land until construction is ready and whilst you are going through the town planning permit processes. Although this will generally be offset with some form of rental income, the holdings cost require a portion to be factored into the overall feasibility of the project.
While GST needs to be factored into the assessment, it will be offset with any GST components of the project’s build, design or service and authority costs. If the project is profitable, there will be a component that needs to be factored into the equation of the feasibility.
This does not relate to tax payable – this is separate and depends on the company or personal structure of the final net payable profit. The tax component will need to be liaised with your accountant.
The finance section can be made up of many difference facets or arrangements as the property development finance sector is often quite complex – generally you will have teams of people combining to form a joint strength in a lending environment via company and trust structures.
With that said this sector factors in broker fees, valuation fees, quantity surveying fees, line fees, interest and any general financing requirements. It is also crucial you have the right broker or banker who is familiar with this form of project development work.
This section summarises the profit on the project and boils it down to a percentage of the overall revenue, less development costs. In our experience and generally with any lending requirements, a project must land around 15% at a minimum of development income/profit. If this is not the case when assessing the project, our advice is to move on and find the next one.
This is the most crucial decision and assessment any property developer must make as this decision could cost you 2-3 years of heartache with your life savings and funds tied up in something that is not profitable.
The feasibility calculator is only a guide to assessing your property development you should seek legal advise prior to making any decision based around the financial outlay described within the calculator example.
Building a boutique townhouse development can be an exciting opportunity, but a project this size requires planning & forethought.
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Carpenter
Joshua joined Mavi Built in 2021 as a carpentry apprentice. He’s is in the process of learning the Mavi Built way and training alongside our senior members to work on defects, maintenance, framing, lockup & fixing work. We look forward to watching him evolve and work through his carpentry apprenticeship.
Carpenter
Andrew started with Mavi Built in 2020 as a carpentry apprentice. He has great carpentry knowledge and specialises in assisting with carpentry tasks, including defects, maintenance, framing, lockup & fixing work. Andrew is soon to complete his apprenticeship to be a qualified carpenter.
Leading Hand Carpenter
Kosta joined Mavi Built in 2019 as one of our valued carpentry members. He has great carpentry knowledge and specialises in building tasks, including defects, maintenance, framing, lockup work and fixing work. Kosta is an all-rounder who assists in various on-site carpentry roles and the management of key stages of building where required.
Maintenance & Defects Manager
Luke commenced with Mavi Built in 2020 as our maintenance manager. He has great carpentry knowledge and specialises in defects and ongoing maintenance for Mavi Built. Luke also assists in various onsite carpentry roles and the management of key stages of building where required.
Contract Administrator
Arif started with Mavi Built in 2016 as an estimator, assisting with all tendering for Mavi Built. Arif is now a contract administrator, he is responsible for running live projects, schedule assistance, accounting liaison, key contracting preparation tasks, estimating and all administration aspects of running live and pre-construction projects.
Senior Project Manager
Adam started with Mavi Built in 2012 as a contract administrator and is now a senior project manager. He is responsible for running live projects, scheduling, accounting liaison, key contracting preparation tasks and general overview and planning requirements for any live and pre-construction tasks.
Accounts and Admin Manager
Christina is George’s sister and started her career with Mavi Built as a bookkeeper in 2015. She is now George`s PA and Head of Accounts, looking after admin and finances. Christina assists George with administration and accounting duties, including contract administration, operations and other general tasks.
Site Manager
Site Manager
Managing Director
