Funding Table of Smart Feasibility Calculator
This section explains the Funding Table section in the PDS SFC v5.0 sheet. Your borrowing and the bank's lending for your project depends on the Funding Table. Allows you to distinguish between your soft costs and hard costs. The bank that will give you a loan will not consider the amount that you have spent on Stamp Duty, GST/VAT, and so on. The bank will lend you only 70% of the land cost and not 70% of the project cost. This is where the Funding Table will make things easy for you.
The Funding Table allows you to calculate what you are going to contribute as a developer's equity, shown in the right pane under Dev. Equity column and what the bank will consider as part of hard costs.
Now let us see the Funding Table fields in detail:
- Land Acquisition - this field will be populated automatically based on the Land Acquisition Loan (Borrowings) field in the Finance Costs - Land Acquisition (Holding Period) section. In this example, you will get a loan of 70% of the land cost, so the developer’s share (Dev. Share) for land acquisition will be 30%.
- The next line is for the tax type - GST/VAT. Since we have not selected a tax type here, it is blank.
- Stamp Duty - Enter 100%. The Dev. Share for this is 100% as banks do not consider this as a hard cost.
- Legals - Acquisition - Enter 0%. This is considered a hard cost.
- Construction Costs - Enter 0%. All of the construction costs will be covered by the bank depending on a signed contract between you and a builder or a quality surveyor hired by the bank. The bank will consider the lower number out of these two.
- Construction Contingency - Enter 0%. This is considered as a hard cost.
- Consultants - Enter 60%. A part of the consultants’ fee may be covered by the bank.
- Statutory Fees & Contributions - Enter 100%. This is not a hard cost.
- Agents Commission Residential - Enter 100%. This is not a hard cost.
- Agents Commission Commercial - Enter 100%. This is not a hard cost.
- Marketing Expenses - Enter 0%. Banks may or may not consider this as a hard cost.
- Other Selling Costs - Enter 50%. A part of this cost may be covered by the bank.
- Legals on Settlement - Enter 0%. This is a hard cost and will be covered by the bank.
- Leasing Expenses (Commercial) - Enter 0%. This is a hard cost and will be covered by the bank.
- Misc Closing Costs - Enter 0%. This is a hard cost and will be covered by the bank.
- Misc. Allowance - Enter 40%. A part of this cost may be covered by the bank.
- Land - Interest Costs (Holding Period) - Enter 100%. This is not a hard cost and it will be the developer's share completely.
- Finance Costs - During Const. - Enter 0%. This will be covered completely by the bank.
- Other Income - Enter 100%. This is not a hard cost and it will be the developer's share completely.
This feasibility is 100% accurate as it goes into a loop to come up with the calculations. As per the example values considered here, although your spending is $3,838,915, you can see that the bank is only considering $3,188,526 as the total development cost. So from the Funding Table, you know that $650,388 (Dev. Equity) is the amount you have to come up with without the total $3,838,915 spending.