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Development Appraisals

What are the main components of a development appraisal?
1. Construction Cost
2. section 106
  1. What is section 106
    1. Planning consent
    2. Section 106 of the 1990 Town & Country planning act
3. TAX
4. Land Aquisition
5. Stamp Duty
6. Professional Fees/costs
7. Planning costs
8. Agency Fees
9. Profit
What is the RED BOOK
1. RICS Appraisal and Valuation Standards
2. Contains mandatory rules and best practice, guidance and related commentary
How do capital allowances influence a development appraisal
1. Capital allowances give you money back off the tax paid
2. There are discounts for tax such as M&E incentives, having BREEAM, building in enterprise areas and land remediation
How would you carry our a development appraisal
1. Location and size of land
2. Get as much info on the plot, history, conditions, plans etc
3. BUDGET
4. Rough cost of similar projects in that area, adjust to present using TPI
5. Cost of fees as per a % of construction cost
6. when every cost is accounted for, work out potential revenue of the property
7. convert to net present value
  1. or cost today, no calc is required
  2. for future cost/rev, calcs need to be made using discount rate to the start date

Development Appraisals

	Created by Fred Fulford almost 10 years ago