Development feasibility
Test costs, end value, margin and how much a lender might fund. No upper limits.
Example figures are filled in. Replace them with your own.
Estimated profit
$821,000
20.6% margin on cost- Total development cost
- $3,979,000
- Estimated finance interest
- $285,000
- Selling costs
- $144,000
- Senior loan (lower of the two limits)
- $2,840,000
- Equity you'd need
- $995,000
- Profit as a share of end value
- 17.1%
Interest is estimated on the borrowed share of costs: the land for the whole project, and half of the build, fees and contingency on average as funds are drawn. Selling costs come out of the sale proceeds, so they aren't part of the equity figure. GST, mezzanine funding and lender fees aren't included, and the lender limits are examples only.
Everyone's situation is different. These figures are a starting point. An adviser can run a personalised calculation with your real numbers and current lender policies.
Results are estimates for planning, using standard loan maths, and should be used as a guide only. They assume rates stay the same and leave out fees you haven't entered. They are not an offer or approval of finance, and not financial advice.
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Everyone's situation is unique. An adviser can run a personalised calculation with your real figures.