Development Costs
Understanding Development Costs
Begin by exploring the development cost section, which allows you to allocate costs across different sections of the feasibility study. The section also includes options for adding contingencies and determining whether costs will be funded by the bank.
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Bank’s Total Development Cost (TDC)
Learn how banks determine the Total Development Cost (TDC). This includes understanding what costs the bank will or will not fund, such as stamp duty, interest costs, and legal fees.
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Allocating Construction Costs
Input your construction costs, which are automatically populated from previous entries. You can also add contingencies on top of these costs to account for potential overruns.
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Sales Commission and Funding
Decide whether to include sales commissions in your funding requirements. If included, the sales commission is added to the total funding needed.
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Consultant Reports and Contingencies
Learn how to include consultant reports, either as a percentage of the cost or as a gross amount. Add contingencies for pre-permit and during-permit reports.
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Marketing Expenses
Input marketing expenses as a percentage of sales or as a gross amount. Understand the difference between marketing expenses and sales commissions.
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Council Contributions and Closing Costs
Add statutory fees, council contributions, and closing costs. Specify whether these will include GST and determine the percentage or gross amount.
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Custom Costs
Utilize up to five custom cost sections to add additional expenses that do not fit into predefined categories. These can be entered as gross amounts and include contingencies as needed.
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