Financial Feasibility
There are four principle elements of property development. These are the purchase and holding costs, construction costs and professional fee's (surveyors, architect, etc), the return required to make the project viable (minimum 20% profit), and the value of the completed development. For the project to be viable the completed value must exceed all three of the other elements.






Holding Costs

The sort of holding costs you would expect to have are:

• Interest and finance costs
• Council rates, water rates etc
• Professional fees (drawing plans, submitting to council)
• Development approval fee's/subdivision costs

But using an options contract to control the property you can remove the interest costs until your site has got development approval. This can be a significant saving and means more profit in your pocket.