Dear all,
I was wondering if any experienced developers out there have a copy of a feasibility study which they could be kind enough to forward me.
I am currently working on my 2nd and 3rd developments concurrently and need to budget the cost for the development.
Kind regards
Luan
[email protected]Feasibility studies are subjective and vary according to the type of development, finance considerations, market conditions, and many other factors. Therefore another developers study is not likely to assist you.
If you are seeking a “format”, or guideline, this information can be found on the Internet.
— Michael
Dear Micheal,
yes I agree that they are subjective, I should have made myself more clear in stating that I required an outline of one to reconcile whether I left anything out that one would require.
Kabung
It appears that you’re seeking a cost [budget] analysis rather than a feasibility study – which is conducted prior to starting a development to demonstrate if the project is feasible.
There is no specific format because costs associated with your project may not apply to other developments, and vice versa.
If you are concerned about the budget, or overlooking costs, then I highly recommend locating a qualified quantity surveyor – or experienced builder who comes recommended, and paying several hundred dollars to ensure all financial considerations have been taken into account.
— Michael
Thank you Micheal for your comments.
I agree that I am seeking a cost analysis for my projects. However I don’t see much difference in a cost analysis as opposed to a feasibility study, I assume that the only difference between them is that a feasibility study would incorporate the expected resale value as a revenue amount. Perhaps also that the feasibility study would also include a time line plan for the project to be read in conjunction with the cost analysis.
I understand that I will need a quantative surveyor. Every Development Application requires a quantative surveyor to cost the project prior to lodgeing for a development approval, this is because the DA lodgement fee scale Legistlation is based on the estimate of the building cost of the development project and this has to be done by a qualified quantative surveyor. However a builder or quantative surveyor will not be able to estimate or establish cost that is not applicable to the actual building/construction of the project e.g.marketing or adiministration or any other miscellaneous cost.
I believe in the KISS (keep it simple stupid) method and the basic ‘monkey see, monkey’ do approach, so like I stated earlier I’m just looking to obtain a copy of an existing feasibility study to reconcile against mine to see if there is anything I should incorporate or ommit. As my mentor always says, ‘there’s no need to reinvent the wheel’
Kind Regards
Luan
Ummmm….Kabung,
You stated you’re on your 2nd and 3rd development…So why can’t you use the item list from your 1st development to compare to ?
Surely you already have the info you are chasing ?KP
because in my first project i just flipped an option. In that one there was only one or two possible buyers because the site required to be amalgamated to maximise its yield as it could only be battle-axed as a stand-alone property but could be developed into townhouses if the property was widen by amalgamation.
Kind Regards
Luansee my posting in ‘entry level developer’ for the discription of my first and current deals.
Kind Regards
kabung
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