Development Appraisal Flashcards
1
Q
What is a development appraisal?
A
“Financial appraisal of a development”
Usually output is: Development profit or for working out the value of the land.
2
Q
What are the basics of a Dev Appraisal?
A
Gross Development value- input costs-fixed land costs = profit metric
3
Q
State some of the inputs put into the development appraisal?
A
Build period: 9 months
Sales period: 3 months
Sales cost: 1.5% of GDV
Construction costs: £145 Sq Ft
Construction contingency: 5%
Acquisition costs (Agents + LBTT)
Finance fees: 1% 9; costs
Professional Fees: 7% of GDC
Advertising
Developers profit: 20% of costs
Interest: 6%
Total GDC £1,750,194
