Forums / Property Investing / Help Needed! / How to crunch the numbers – due diligence

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  • Profile photo of darkness72darkness72
    Participant
    @darkness72
    Join Date: 2013
    Post Count: 51

    Hi,

    I have various theories on crunching numbers when deciding at what price to buy a property for development purposes.

    But am still wanting to learn more and refine this process.

    Does anyone have a great method or know of a great website link etc to use – for making your own calculations for crunching numbers

    ie: deciding your maximum buy price vs all costs / development costs and ensuring you come out on top, not a loss.

    Cheers

    Gav

    Profile photo of oc1oc1
    Participant
    @oc1
    Join Date: 2012
    Post Count: 148

    Gav

    The other part of this equation is to know your market i.e.

    * what type of dwelling is in demand,

    * what size these dwellings need to be,

    * the type of finish,

    * how many can fit on the block,

    * how large does the block need to be,

    * the resale values of the new dwellings etc etc.

    Unfortunately no development calculator is going to give you that. Once you have the above info you can determine the other costs with a bit of research and plug it into an excel spreadsheet. It's not easy but not that hard either.

    Oscar

    Profile photo of darkness72darkness72
    Participant
    @darkness72
    Join Date: 2013
    Post Count: 51

    Gday Oscar,

    Yep – thats good thats pretty much what i do (even down to the cost per sq metre of land for an area … etc

    just thought someone might have something extra out there

    cheers

    Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,681
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