Explanation to project and allocate development costs into future cash flows.

This section explains how to project and allocate development costs into future cash flows. This is the most important section for this feasibility because all the costs that are going to become part of the project will be anticipated here. 

1. Click Save and Next in the Other Revenue sheet. 

The Development Costs sheet will be displayed.

Development Costs sheet

2. Then, click Save and Refresh

The information like start date, end date, land value and so on from the Project Setup will be carried to the Dev. Costs sheet.

You can notice that it has automatically picked up the land value that you are paying and the important dates for the settlement period.

Stamp Duty(row 7) is in black colour because you can add the values for it and change the name as well.

You can also add GST to the land value. You can choose the correct cost code based on your requirements.

Different fields and steps for calculation in Land Acquisition Costs are explained below:

  • Land/Site Value(Deposits) No GST is the land value without GST. If you are purchasing a commercial property then GST is included, else GST is not included.
  • It is also important to select the appropriate Cost Code that is necessary because everything is controlled by these cost codes.
  • Start Date and End Dates cannot be changed because they are automatically updated from the Project Setup.
Land Or Site Value(Deposits) No GST

Land/site value will be directly picked up from the Project Setup and cannot be changed here. For example if you choose land value which includes GST, just click the Save And Refresh button.

GST will be automatically calculated and updated.

Deposits
  • Deposits refer to the cash that you give to the seller or the lender to hold the property for you. For example 60000 dollars be the deposit you have paid. Click Save And Refresh.

It tells you the Total Balance remaining at the time of settlement.

Contingency

There is another column named Contingency. You cannot add Contingency to the land acquisition cost.

Cash Flow - Project Setup

Here the cash flow will be displayed based on the settlement period specified in the Project Setup. This is the amount required as part of your cash flow.

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