EXPECTED INCOME $ 10 flats @ 100 per week =
|
52 000 |
Less vacancies @ 10%pa average: |
(5 200) |
Net annual realisation: | 46 800 |
Less outgoings |
(20 000) |
------------- |
|
Net annual return: |
26 800 |
Capitalize @ 10% pa: | 268 000 |
EXPECTED COST OF REFURBISHING | |
Internal surfaces painting |
8 500 |
Carpet: | 15 500 |
Benchtops: |
8 000 |
Extras: |
5 000 |
New PC items: |
20 000 |
Repair and modernising bathrooms: |
25 000 |
----------- |
|
TOTAL COST: | 82 000 |
EXPECTED END MARKET VALUE AFTER REFURBISHMENT | |
EXPECTED INCOME 10 flats @ 150 per week =
|
78 000 |
Less vacancies @ 10%pa average: |
(7 800) |
------------ |
|
Net realisation: |
70 200 |
Less outgoings | (15 000) |
------------- |
|
Net annual return: |
55 200 |
Capitalize @ 8.5% pa: | 649 412 |
say 649 000 |
QUARTERS: | 0 |
1 |
2 | 3 | 4 |
Legal/stamp duty: |
(16.1) | ||||
Fees: (4) | (2) | ||||
Refurbishment: | (4) |
(10) |
(25) |
(35) |
(8) |
Holding charges: |
(1.4) |
(1.4) |
(1.4) |
(1.4) |
(1.4) |
End market value: |
649 | ||||
Legal/commission on sale: | (19) | ||||
--------- |
--------- | --------- | --------- | --------- | |
TOTALS: |
(25.5) |
(13.4) |
(26.4) | (36.4) | 620.2 |
Discount rate @ 15% pa = 3.75% per quarter Discount factors: | 1 |
0.964 |
0.930 |
0.900 |
0.863 |
DCF: |
(25.5) | (12.9) | (24.5) | (32.6) | 535.3* |
NPV: |
440* |
Development fund contribution: | 9 840 |
Department's application fee: | 47 |
Council's application fee: | 75 |
LTO registration fee: |
538 |
Legal fees: |
1 500 |
Licensed surveyor: | 3 000 |
--------- |
|
TOTAL: | 15 000 |
END MARKET VALUE AFTER STRATA CONVERSION & REFURBISHMENT - "IN LINE" METHOD | |
5 units @ 150 |
750 |
5 units @ 200 | 1 000 |
-------- |
|
Gross Realization: |
1 750 |
After profit and risk @ 12% 1750 * 100/112 = | 1 563 |
After commission, legal on sale @ 3% overall: 1563 * 100/103 = | 1 517 |
say |
1 520 |
QUARTERS: |
0 |
1 |
2 |
3 |
4 |
Legal/stamp duty: | (16.1) | ||||
Fees: |
(4) |
(2) | |||
Strata conversion fees: |
(5) | (6) | (3) | (1) | |
Refurbishment: |
(8) |
(18) |
(35) |
(30) |
(10) |
Holding charges: |
(1.4) |
(1.4) |
(1.4) |
(1.4) |
(1.4) |
End market value: | 1520 | ||||
Commission /legal: |
(45.6) | ||||
----------- |
----------- | ----------- | ----------- | ----------- | |
TOTALS: |
(29.5) | (26.4) |
(42.4) |
(34.4) |
1462 |
Discount rate: 20% pa = 5 % per quarter Discount factors: | 1 |
0.952 | 0.907 | 0.864 | 0.823 |
DCF: | (29.5) |
(25.1) |
(38.4) | (29.7) |
1202.8* |
NPV: |
1080* |
4 units @ 220 = 880 and 4 units @ 250 = | 1 880 |
After profit and risk @ 15% 1880 * 100/115 = | 1 634.8 |
After commission, legal on sale @ 3% overall: 1634.8 * 100/103 = 1587.2 say | 1 590 |
$ '000 QUARTERS: |
0 |
1 |
2 |
3 |
4 |
5 |
6 |
Legal/stamp duty: | (16.1) | ||||||
Fees: |
(4) | (8) | |||||
Strata conversion fees: |
(5) | (6) | (2) | ||||
Demolition: | |
(5) |
(5) | ||||
Rebuilding: | (50) | (100) | (150) | (250) | (200) | (100) | (50) |
Holding charges: | (1.4) | (1.4) | (1.4) | (1.4) | (1.4) | (1.4) | (1.4) |
End market value: | 1590 | ||||||
Commission /legal: | (47.7) | ||||||
|
----------- |
----------- | ----------- | ----------- | ----------- | ----------- | ----------- |
TOTALS: |
(71.5) |
(119.4) | (162.4) |
(253.4) |
(201.4) |
(101.4) | 1491* |
Discount rate: 20 % pa = 5% per quarter Discount factors: | 1 |
0.952 |
0.907 |
0.864 |
0.823 |
0.784 | .746 |
DCF: |
(71.5) |
(113.7) |
(147.3) | (218.9) |
(165.7) |
(79.4) | 1112.6 |
NPV: say 316 (000) | 316.3 |