MG - Dev apps Flashcards
Can you please describe the process of completing the appraisal for worcestershire?
agency @ legal fees -
Profit levels -
Construction costs - where from? - did you check these
How did you distribute your timescales?
Over 12 months
What did you assume as a sales rate per month in the current market for dev land in worcestershire?
2 sales a month
Why is there a lower sales rate at the moment?
High mortgage rates mean lending is less affordable
Whats included within professional fees and what makes up the highest %?
architect highest %
What is typical prof fees when no planning permisison?
12%
If there was planning permission what are typical professional fees?
8%
How did you consider your construction timescale?
Number of units, size of housebuilder and scheme (are there phases?)- don’t want to build units too quickly outpace with sales as they will be vacant and you will already have spent the money and be waiting for more money - sometimes should overlap or be seperate ?
What are prof fees charged on?
Build costs (inc externals)
What level of profit dud you assume on worcestershire and why?
xx %
How can profit margins be lower?
Larger housebuilders may have lower profit margins as they have in house experts and have quantum of sites
Smaller schemes may have decreased risk due to short timescales
How do build costs impact targeted profit?
High build costs = higher risk
What did you show in the worcestershite sensitvivity analysis?
we have prepared a sensitivity analysis, summarised below, demonstrating how the residual amount available for
purchase (LAND COST) would vary if sales prices and construction costs were to vary by 5% or 10%.