Flashcards in Develpment Appraisal Deck (4)
What is a development appraisal?
A series of calculations to establish the value/ viability/ profitability/ sustainability or a scheme
Based on clients inputs
What is a residual valuation?
Most common purpose is to find the market value of a site
Based on market inputs (the rics building cost information service/ QS)
What goes into a development appraisal?
GDV - Total Development Costs - site value
GDV = (MR x NIA) / Y
Net Development Value = GDV - Purchasers Cost
Build Costs =
Construction Costs (GIA)
Professional Fees (10-15%)
Marketing (agents 1%, letting 10%, marketing)
Planning (CIL + S106)
Cost of finance (LIBOR)
Developers profit = 15-20%