Development Appraisals - lvl 1

Question 1

What is CIL?

Question 2

What is S106?

Question 3

What are the differences between CIL and S106?

Question 4

How would you likely estimate the likely S106 and CIL contributions?

Question 5

How can a development appraisal be used in valuing development?

Question 6

Tell me about planning/costs/GDV/individual site elements in relation to a development appraisal.

Question 7

What is a sensitivity analysis?

Question 8

What variables might you change and why?

Question 9

What factors affect the sensitivity of a development appraisal?

Question 10

What is an S Curve?

Question 11

What sources of information do you use when undertaking a development appraisal?

Question 12

How do you calculate GDV/NDV/finance costs/project costs/project timescales etc?

Question 13

How do you calculate developer’s profit?

Question 14

What other metrics can you produce from a development appraisal?

Question 15

What is the difference between a development appraisal and a residual land valuation?

Question 16

What is a development appraisal seeking to measure?

Question 17

What are the common output metrics?

Question 18

Talk me through the key inputs when undertaking a development appraisal,

Question 19

If you do not have specific figures, how do would you account for professional, legal and marketing fees?

Question 20

How would you estimate build costs?

Question 21

Which construction industry inflation indices can you use?

Question 22

Where would you source reliable sales and value information?

Question 23

How can you use comparable sales information to inform a development appraisal?

Question 24

What is GDV?

Question 25

What is IRR?

Question 26

What is profit on cost?

Question 27

What the difference between a DCF development appraisal and a ‘normal’ development appraisal?

Question 28

How can you ensure your cash flow shape is accurate?

Question 29

What is a discount rate/

Question 30

On one site, which inputs might change if we are conducting a development appraisal for a specific client versus a generic development appraisal without a specific client in mind?

Question 31

How would you decide what land value to input in your development appraisal?

Question 32

When inputting build costs, what measurement basis do you use?

Question 33

When inputting sales values, what measurement basis do you use?

Question 34

Tell me about software you have used.

Question 35

Give me a limitation on a piece of software you have used.

Question 36

What is profit on cost/profit on GDV?

Question 37

When would you use one/both of these?

Question 38

What is the internal rate of return?

Question 39

How does this differ according to your client’s requirements?

Question 40

What is viability?

Question 41

What are the main forms of finance available to developers?

Question 42

How do you decide what financing rate to use?

Question 43

What usually impacts a client’s financing rate?

Question 44

How do you make sensible assumptions about the development programme? Who might you consult?