Calculating the residual land value
The Target DM % section allows you to use your target development margin to calculate the residual land value.
One of the highlights of One Minute Feaso is that it helps you determine the residual value of the land, i.e., the maximum price you should be paying on this site based on its development potential.
Enter the value for the Target DM % field.
The Residual Value of Land / Unit and Residual Value of Land will be calculated.
If your land is smaller and you are planning to develop 4 to six units on that land, then it is suggested that you should have a smaller TDM%, say about 15%, because the smaller the land, the more competition that you are going to face.
If you are actually paying(Land Value) less than Residual Value of Land, then your Dev. Margin will be higher.