Run the numbers

 In Blog

Being in a position to carry out a very thorough and efficient due diligence study on a site is critical. Many of our clients constantly search for their next project and typically come across development sites they need to review very quickly. We have found that the most efficient way to complete a due diligence study is:

Step 1: Preliminary review from a town planner
Step 2: Preliminary design review from an architect
Step 3: Feasibility study

Step 1. Preliminary Review – Town Planner

When undertaking a preliminary review of the site, the town planner will study your development site and should provide a town planner report with information regarding:

  • Site Area.
  • Zoning of the Site.
  • Review of the existing site and surrounding areas, a review of the character and key attributes of the area.
  • Research and review both current and historic town planning.
  • Identify highest and best use assessment for the development site.
  • Indication of the cost of headwork and infrastructure charges posed by the Council.
  • Confirm any restrictions, setbacks, overlays or constraints within the town plan that may impact the development site.

A report like this would likely cost $1,200 – $2,000 + GST.

Step 2. Preliminary Review – Architect

Depending on your development project, your designer can look to do a preliminary design based on:

  • Built form projects: Architects can take the information included in the town planning report and provide a conceptual design. This is typically a carparking layout and/or floor layout which will allow you to work out build costs and sellable area.
  • Smaller townhouses and residential projects: An indicative building footprint is typically all that is required to show the buildable area on the site. This information will be enough to determine internal roads, landscape and building area.
  • Land subdivision: An engineer can use the information with the town planning report to draft an indicative subdivision plan identifying roads and land lot of positions.

A report like this would likely cost $1,200 – $2,000 + GST.

Step 3. Desktop Study

The final step is to run the numbers through a feasibility template to see if the project is financially viable.

If you would like to purchase our template for an effective desktop feasibility study, please visit our products page.

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