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Residue Method
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Land Value
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Developer Profit ( DP )
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Land Value
= GDV – ( GDC + DP ) x PV
= Residue Value x PV
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ROI %
= DP / GDV
15% -25% of GDV
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ROC %
= DP / GDC
20% - 30% of GDC
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Developer Profit ( DP )
= GDV – ( GDC + Land Cost )
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Present Value ( PV )
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PV
= 1 / ( 1 + i ) ^ n
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i = interest
n = year
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Developer Profit ( DP )
|
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DP
= GDV – ( GDC + Land Cost )
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Land Cost
|
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Land Cost
= Acquisition Price + Acquisition Cost
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Acquisition Cost :
stamp duty
legal fees
valuation fees
land surveyor
estate agent fees
stamp duty on loan
legal fees
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Gross Development Cost ( GDC )
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Pre – Construction
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Primary Stage
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Post Construction Stage
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site survey,
feasibility study,
planning permission,
infrastructure,
conversion,
premium,
statutory contribution ( TNB, Telekom, Jabatan Parit & Saliran ),
site clearing,
earth work ( cut & filled to flat the land )
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Foundation to roof
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commissioning
- test the functioning of the building, building services,
defect liability
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Gross Development Value ( GDV )
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Comparison Method
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Investment Method
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GDV
= Selling Price x Number Of Unit
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GDV
= Net Income x YP ( in perpetuity )
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