Construction Cost Calculation: The video outlines methods for calculating construction costs, emphasizing flexibility. Costs can be determined per unit or per square meter, with the option to include or exclude GST.
Dashboard for Assumptions: A dashboard centralizes all critical inputs and assumptions, including development units, operational expenses, and rent escalation rates, to streamline decision-making.
Rent Escalation and Vacancy: Rent escalation can be customized (e.g., every 12 or 13 months). Vacancy and credit loss can be calculated based on gross rent or total potential income.
Pre-Lease and Occupancy: Pre-leasing progress and lease-up rates are tracked to predict when full occupancy will be achieved. The system allows input of metrics such as pre-leased percentage and monthly leasing rates.
Sales and Reversion Methods: Sale values can be calculated using either a cash-flow-based approach or a market sentiment approach. The video advises favoring NOI or cash-flow-based methods for accuracy.
Capital Growth Option: Details on capital growth rates, sales commissions, and GST implications for reversion values are provided. This is critical for sophisticated property evaluations.
Insights Based on Numbers
3% Annual Rent Escalation: An example provided in the video shows rent increasing 3% annually, demonstrating the flexibility to adjust this increment.
20% Pre-Leased During Construction: Insights on pre-leased units during development highlight efficiency in reducing vacancy.
Occupancy Pace: Lease-up rates (e.g., 10-30 units per month) provide projections for achieving 100% occupancy.
Construction Cost Calculation: The video outlines methods for calculating construction costs, emphasizing flexibility. Costs can be determined per unit or per square meter, with the option to include or exclude GST.
Dashboard for Assumptions: A dashboard centralizes all critical inputs and assumptions, including development units, operational expenses, and rent escalation rates, to streamline decision-making.
Rent Escalation and Vacancy: Rent escalation can be customized (e.g., every 12 or 13 months). Vacancy and credit loss can be calculated based on gross rent or total potential income.
Pre-Lease and Occupancy: Pre-leasing progress and lease-up rates are tracked to predict when full occupancy will be achieved. The system allows input of metrics such as pre-leased percentage and monthly leasing rates.
Capital Growth Option: Details on capital growth rates, sales commissions, and GST implications for reversion values are provided. This is critical for sophisticated property evaluations.
3% Annual Rent Escalation: An example provided in the video shows rent increasing 3% annually, demonstrating the flexibility to adjust this increment.