Site settings and permissions
- Three units are planned for development on the site.
Sales commission and costs
- The listing agent proposes a sales commission of $10,000 per property, including marketing expenses.
Cost considerations
- The current owner is willing to negotiate a selling price starting from $750,000, which will be assessed for feasibility.
Development specifications
- Total units: 3
- NSA (Net Saleable Area) per unit: 130
- Built area per unit: 20
- Construction cost per UOM IGST: $2,100
- Market value per unit IGST: $800,000
Property quality and target buyers
- Property characterized as low to medium quality, suitable for entry-level homeowners.
Development cost breakdown
- Construction costs: $945,000 with 5% contingency
- Sales commission: $31,200
- Statutory and development fees: 6%
- Closing costs per unit: $2,000
- Development management: $25,000
- Project manager: $25,000
- Holding costs: $15,000 (including council rates)
Financing details
- Bank’s Total Development Cost (TDC) 64.1%
- Finance duration: 13 months
- Interest rate: 6%
- Setup fee: 1.3%
- Draw intensity: 60%