Flashcards in Development Appraisals Deck (7):
Have you undertaken a sensitivity analysis? What did you do?
Varied build costs, yield and rental values
Changed phasing options
Could have used software 'Monte Carlo' but no experience
What are the benefits / pitfalls of low gearing
Gearing is a measure of a company's long term debt against its equity. Low gearing is less risky but higher gearing offers a better profit on cost.
What is an IRR? What is a good example of one?
Measures the profitability of investments
I would look at RICS guidance financial viability in planning
What do purchasers costs break down to?
VAT (on agency fees) 0.2%
What is an example of a dev appraisal you've done recently?
What guidance could you have used?
Project x Manchester city centre
RICS guidance - VIP 12 valuation of development land
What are the main headings on a residual appraisal?
Developer profit / site value