11 Jun Three Golden Rules for Feasibility Studies
One of the main topics that have become very apparent when doing our bus run workshops is the importance of managing risk when doing property development. Michael Delport has over 20 years of knowledge around managing risk, which is a topic taught in our two-day workshop.
At one of the stops along the way, Michael talks about feasibility studies, and within that Michael highlights three main points that are extremely helpful when thinking about property development.
Firstly, a feasibility study (or analysis) is a construction valuation that is essential to determining the viability of a project and can also identify any irregularities around building costs and risks overcapitalisation.
When carrying out a feaso (feasibility study), remember the following golden rules:
1) When you’re working with your end price, don’t over-estimate what you can sell something for just because its your project and you have an attachment to it.
2) Make sure that when you are putting your figures in to include all the real costs of what it will cost to develop, and
3) Always include a contingency plan in your feaso. This helps to ensure that you go into a project that will make you a profit and essentially make you money.
We encourage you to take the next step and attend our Getting Started in Property workshop, run over two days. This will give you an in-depth overview into every stage that is involved with developing a property while also managing the risk so you can mitigate the risks involved in property development and go ahead to make good money.
Express your interest here to attend our workshops and we will be in touch with you with more information.
Disclaimer: This article is for information purposes only.