1 Selling Price Per SQ.M.

Offered Selling Price

Total Selling Price

Prevailing Market Value of Lots in the area

2 Hard Costs
Land Costs
Site preparation costs
Permits
Contractor fees
Construction management and overhead cost
Materials
Labor +
Equipment rental =
Other cost x
=
x
3 Soft Costs =
Loan fees x
Construction loan interest =
Legal fees +
Soil testing =
Environmental studies /
Land planner fees =
Architectural fees /
Engineering fees =
Other cost

4 Estimated Subdivison Cost xx

Contingency xx
Total Subdivision Cost xx

5 Subdivision and Build

Total Subdivision Cost xx
Build Cost(sqm x price per sqm) xx
Build Contingency xx
Estimated Total Development Cost xx

6 Estimated Final Return (Option 1)

* Identify Current Value of proposed lot
* Adopt the mid-point
 * Identify Current selling price of newly build houses
* Adopt the mid-point

7 Option A. Subdivision and Lot development

Option B. Subdivision and Build

Option A. Subdivision Only

Lot Value Estimate xx
Less: Subdivision Cost xx
Estimated Gross Return xx

Option B. Subdivision and Build

Property value estimate xx
Less: Total development cost xx
Estimated Gross Return xx

7 Estimated Project Cost ( Option 2)

* Identify Cost to complete of proposed lot
* Adopt the mid-point
* Identify Currentcost to complete of newly build houses
* Adopt the mid-point
Site acquisition costs xx
Construction costs xx
Total expected development costs xx
Loan to value ratio xx
Permanent mortgage xx
Annualized mortgage constant xx
Cash required for Debt services xx
Lender required service debt coverage ratio xx
Required net operating income (NOI) xx
Estimated operating expenses (Not passed through tenants) xx
Required effective gross income xx
Expected occupancy rate xx
Required gross revenue xx
Leasable square feet xx
Rent required per square foot xx