Development feasibility
Feasibility is the development control document. It tests whether the project still makes sense after land, design, planning, infrastructure, construction, finance, tax/accounting, selling, programme, and risk are considered.
Professional local feasibility model
Use the requested land, lending, interest, sales, GST and company-tax sequence. Every assumption is editable, every result is traceable, and uncertain tax treatment stays visible.
Completeness reflects whether key evidence fields are populated; it does not certify accuracy or feasibility.
Missing or weak inputs
Scenario mode
Decision maturity
Decision this model supports
What price and conditions could support an offer?
Evidence expected at this level
Current title, planning screen, market evidence, high-level civil and funding allowances.
Last assumption change: Not recorded
Expected case
Detailed results stay in the normal page flow. Each line updates after an edited numeric field is committed with Enter, Tab or blur.
1. Cost excluding interest (FC)
$6,550,000
2. Land lending
$1,380,000
3. Land interest
$34,500
4. Main project facility
$5,630,000
5. Main project interest
$548,925
6. Total interest
$583,425
7. Total cost including interest (TC)
$7,133,425
8. Gross sales
$7,000,000
9. Agent fee
$175,000
10. Net sales before GST
$6,755,000
11. Gross profit before GST
-$378,425
12. GST claim
$854,348
13. GST payable on sales
$913,043
14. Net GST payable
$58,696
15. Profit before company tax
-$437,121
16. Company tax
$0
17. Final net profit / loss
Final estimate — verify all inputs and treatment.
-$437,121
Final Net Profit = [(Gross Sales - Agent Fee - Marketing - Land - Civil - Construction - Land Interest - Project Interest) - (Output GST - GST Claim)] - Company Tax
Main reason
Total cost, interest and net GST exceed net sales on the selected assumptions.
Biggest current risk
Sale-price confidence
Next step
Verify the largest uncertain cost and sales assumptions with the QS, valuer, lender, accountant and project consultants.
Best and worst cases apply visible percentage stresses to sales, land, civil, construction, interest, programme and selling costs. They are not forecasts.
Sales 5% · construction -5% · programme -8%
Sales 0% · construction 0% · programme 0%
Sales -8% · construction 12% · programme 20%
Decision fragility
These are transparent sensitivity checks against the current target margin. They are not predictions or a buy/decline recommendation. Verify every cited assumption before making a decision.
Supporting assumption: Construction $3,400,000 · Example - unverified confidence
Source: Worked example allowance — replace with QS, tender or contract evidence
Supporting assumption: Modelled gross sales $7,000,000 · Example - unverified confidence
Source: Worked example sales assumption — replace with current valuation and comparable evidence
Supporting assumption: 18 months at 6.5% · Example - unverified confidence
Source: Worked example lending assumption — replace with current lender terms
Supporting assumption: 8 dwellings currently modelled
Source: Worked example sales assumption — replace with current valuation and comparable evidence
Relative share of the selected scenario’s core cost and interest components.
A labelled bridge from gross sales to the final result; positive and negative values are never shown by colour alone.
FC = Land + Civil / services / approvals + Construction
Land lending = Land × land lending %
Land interest = land lending × annual rate × months ÷ 12
Main facility = land lending + Civil + Construction
Project interest = main facility × annual rate × months ÷ 12
Gross sales = Σ(home count × sale price)
Agent fee = Gross sales × agent fee %
Net sales = Gross sales - Agent fee - Marketing
GST claim = eligible GST-inclusive costs × editable GST fraction
Sales GST = Gross sales × editable GST fraction
Net GST = Sales GST - GST claim
Final result = profit before tax - company tax
Expected outputs: FC $6,550,000; land lending $1,380,000; land interest $34,500; main facility $5,630,000; project interest $548,925; TC $7,133,425; gross sales $7,000,000; GST claim about $854,348; GST payable about $913,043.
Final result: -$437,121 loss
This is an example using the user's development calculation structure. GST and tax treatment must be confirmed by an accountant or tax adviser before relying on the result.
This is an educational estimate only. Confirm with a quantity surveyor, accountant, lender, valuer, lawyer, planner, and other relevant professionals before making decisions.
Check whether the land price looks supportable before making or confirming an offer.
This is an educational estimate only. Confirm with a quantity surveyor, accountant, lender, valuer, lawyer, planner, and other relevant professionals before making decisions.
Organise all cost categories so construction cost is not confused with total development cost.
This is an educational estimate only. Confirm with a quantity surveyor, accountant, lender, valuer, lawyer, planner, and other relevant professionals before making decisions.
Estimate gross revenue, profit, and margin after all entered costs.
This is an educational estimate only. Confirm with a quantity surveyor, accountant, lender, valuer, lawyer, planner, and other relevant professionals before making decisions.
Work backwards from revenue and required margin to estimate a supportable land price.
This is an educational estimate only. Confirm with a quantity surveyor, accountant, lender, valuer, lawyer, planner, and other relevant professionals before making decisions.
Estimate possible loan amount and equity need before lender advice.
This is an educational estimate only. Confirm with a quantity surveyor, accountant, lender, valuer, lawyer, planner, and other relevant professionals before making decisions.
Show what happens when sale prices fall, build costs rise, interest increases, or the project is delayed.
This is an educational estimate only. Confirm with a quantity surveyor, accountant, lender, valuer, lawyer, planner, and other relevant professionals before making decisions.
| Item | What it means | Where to find it | Who confirms | Caution |
|---|---|---|---|---|
| Gross realisation value | Estimated total sale value of all completed dwellings before selling costs or tax. | Comparable sales, agent appraisal, valuation, presale feedback, completed project evidence. | Valuer, real estate agent, lender. | Do not use optimistic asking prices as confirmed GRV. |
| Land cost | Purchase price plus acquisition costs that must be funded before development value is created. | Sale agreement, lawyer estimate, lender terms, settlement statement. | Lawyer, lender, accountant. | Include deposit, settlement timing, legal fees, due diligence spend, and holding costs. |
| Construction cost | Cost to build the dwellings and related site works under the intended scope. | QS cost plan, builder tender, contract, specifications, engineering assumptions. | Quantity surveyor, builder, architect, engineer. | Separate house build cost from demolition, earthworks, retaining, civil, services, landscaping, and driveways. |
| Professional fees | Consultant and professional advice costs across acquisition, design, consents, construction, sales, and closeout. | Fee proposals from planner, architect, surveyor, engineers, QS, lawyer, accountant, valuer, agent. | Each consultant and the project manager/development manager. | Include RFI responses, design changes, meetings, site observations, and closeout support where excluded. |
| Council, consent, and approval fees | Fees for resource consent, building consent, engineering approvals, monitoring, inspections, and related council processes. | Auckland Council guidance, consent fee schedules, consultant estimates, project-specific invoices. | Planner, architect, civil engineer, council, developer. | Insufficient data to verify exact amount — check current council requirements and project-specific consent pathway. |
| Infrastructure costs | Costs for water, wastewater, stormwater, power, fibre, vehicle crossing, road corridor works, upgrades, and as-builts. | Civil engineer advice, Watercare/utility correspondence, AT/council requirements, BeforeUdig, tender pricing. | Civil engineer, utility provider, Watercare, Auckland Transport, QS. | Carry a risk allowance until service capacity and connection details are confirmed. |
| Finance costs and interest | Interest, establishment fees, line fees, valuation/QS reporting fees, broker fees, and other funding costs. | Lender term sheet, broker advice, cashflow forecast, loan documents. | Lender, mortgage broker, accountant. | Sensitivity test interest rate and project delay because time can change total interest materially. |
| Contingency | Allowance for unknowns, design development, price movement, consent conditions, site issues, and construction risk. | Risk register, QS advice, lender requirements, developer policy. | Developer, QS, lender, accountant. | Do not spend contingency on scope upgrades without recording the decision and remaining risk. |
| Marketing and selling costs | Agent commission, advertising, photography/renders, staging, legal sales documents, listing costs, and buyer communication. | Agent proposal, marketing budget, lawyer estimate, sales strategy. | Real estate agent, marketing agent, lawyer, accountant. | Include longer campaign costs if the market slows or presales are required. |
| Legal, accounting, GST, and tax considerations | Project-specific legal/accounting/tax treatment, entity costs, GST, income tax, record keeping, and settlement accounting. | Lawyer advice, accountant/tax adviser advice, IRD guidance, project accounts. | Lawyer, accountant, tax adviser. | This guide does not give tax advice. Confirm before purchase, before sale, and before finalising feasibility. |
| Holding costs | Rates, insurance, interest, utilities, maintenance, security, temporary works, and other costs incurred while holding the project. | Rates records, insurance quotes, cashflow, lender terms, historical costs. | Accountant, lender, developer. | Holding costs increase with delays and can quietly remove profit. |
| Developer margin | The developer's target return after costs and risks. Always state how it is calculated. | Feasibility model, investor requirements, lender review, developer policy. | Developer, accountant, lender where relevant. | A low margin may not justify planning, market, construction, finance, and settlement risk. |
Verification
Use current official information and the controlled documents for the actual project.
Planner, surveyor, architect, engineer, quantity surveyor, lawyer, accountant, lender, valuer, real estate agent, and other project specialists must confirm site-specific decisions.
Use IRD property guidance for tax topics such as income tax, GST, rental income, property sales, and entity records. Confirm project-specific treatment with an accountant or tax adviser.
Check council guidance, application requirements, RFI process, consent conditions, approved plans, engineering approvals, and monitoring requirements for site-specific development approvals.
Use Watercare and civil engineering advice to verify water and wastewater connection requirements, network capacity, approvals, fees, and construction standards.
Project-specific consented documents and professional advice override generic guidance.
