Wellington Accountants: Comprehensive Guide: High-Level Feasibility Study for Property Development

WELLINGTON, New Zealand - July 10, 2023 - PRLog -- Before diving into a property development venture, conducting a thorough feasibility study is crucial. This study allows you to analyze the numbers, assess project viability, identify potential challenges, and provide evidence of the investment's worthiness.

To ensure you cover all the necessary aspects and secure financing, follow these key points in your high-level feasibility study:

1. Budget and Finance:

– Acquisition costs
– Civil works and demolition
– Professional fees (architect, engineers, project management, quantity surveyors, valuers, legal)
– Interest charges on lending
– Council costs and regulations
– Construction/building estimate
– Marketing
– Contingency percentage (typically 10-15%)
– Understanding potential returns

2. Technical and Design Feasibility:

– Assess whether the desired development can be achieved on the chosen site.
– Utilize tools like the online subdivision feasibility calculator and Medium Density Projection tool to evaluate land potential and align with relevant legislation changes.

3. Council Approval:

– Understand building and resource consents required.
– Consider restrictions that may impact your development.
– Seek approval from neighboring commercial and residential occupants if necessary.

4. Development Timeline:

– Estimate the project duration, from design to completion.
– Account for unforeseen delays.
– Establish a project management plan, including progress payment schedules, buyer/lease contract timelines, subcontractor planning, and ideal completion timing for maximum sale potential.

5. Risks:

– Identify potential risks, challenges, and issues associated with the development.
– Prepare mitigation strategies and evaluate the feasibility of overcoming these obstacles.

6. Market Analysis:

– Assess external factors, such as economic climate and target demographic interest.
– Determine if the chosen location offers optimal profit potential.
– Ensure alignment between your development goals and market appetite.

7. Competition Analysis:

– Study current competitors in the market and location.
– Analyze successful and unsuccessful projects for insights.
– Use this information to refine objectives, uncover new concepts, and enhance your development strategy.

Remember, a feasibility study serves as the foundation for your project. Don't hesitate to seek expert advice and assistance to ensure a well-informed and confident approach to your property development endeavor. https://www.outsideaccounting.co.nz