Question
The 30-hectare property can be subdivided into 180 sections, assume an average section sale price of $250,000 (inclusive of GST). Real Estate agents fees 3.5%
The 30-hectare property can be subdivided into 180 sections, assume an average section sale price of $250,000 (inclusive of GST).
| Real Estate agents fees | 3.5% |
| Legal costs of sale per lot | $1,000 per lot |
| Direct Costs of Subdivision per lot | $78,000 per lot (plus GST) |
| Consultants fees | $10,000 per lot (plus GST) |
| Holding cost interest rate | 7.5% |
| Development period years | 4 |
| Development Contribution | $11,000 per lot (plus GST) |
| Rates | $23,500 in year 1, $2,000 per section |
| Costs of purchase | $5,000 (plus GST) |
Complete the hypothetical subdivision budget by filling in all the grey cells in the table below.
| Gross realisation | ||
| No. of lots | 180 | |
| Average selling price | 250,000 | |
| Gross realisation (GST inclusive) | 45,000,000 | |
| less GST | 5,869,565 | |
| Gross realisation (GST exclusive) | 39,130,435 | |
| Selling costs | ||
| Agency fees | 1,575,000 | |
| Legal costs | 180,000 | |
| Net realisation | 37,375,435 | |
| Profit and risk | 25% | |
| Outlay | ||
| Subdivision costs | ||
| Development Costs | 14,040,000 | |
| Consultants Fees | 1,800,000 | |
| Development Contribution | 1,980,000 | |
| Holding Costs | ||
| Interest on outlay | ||
| Rates | 563,500 | |
| Cost of purchase | 5,000 | |
| Indicated Market Value | ||
| rate/ha |
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