THE FEASIBILITY REPORT


The feasibility report is the most important part of preparing for any property development. It’s like the business plan for your development. While a residential loan depends on your deposit and your servicing, development finance depends mainly on the projections and accuracy of your feasibility calculations.

A feasibility report brings together all the costs of the project and estimates the income. This requires research, quotes and some educated guesses. first thing lenders will look at to determine whether or not your development is a good investment. Although it’s a complicated exercise with lots of line items, ultimately the feasibility comes down to the profit. As a rule of thumb, developers aim for a minimum profit of 20% on the costs. A lower return may mean your development is too risky – but each development is assessed on its own merits.


YOUR FEASIBILITY MIGHT LOOK LIKE THIS: 

Five-unit house and land development in Te Atatu Peninsula, Auckland