Reference no: EM132326043 , Length: word count:4000
Tasks:
You will be provided with a site plan for a property located at 17 Arnold Street in Kellyville.
Your task will be to determine how many land allotments a hypothetical subdivision will yield on a 10,237 square metre englobo site with three street frontages and given LEP controls. Your conclusion must make a statement as to how much the englobo land is worth, given its subdivision potential.
Task A: You will provide a sketch plan of the site showing your proposed subdivision given the highest and best use of the land.
Task B: You will prepare a Development Application on the correct documentation for the Hills Shire Council. You need to source this.
Task C: You will carry out a feasibility on the property utilising a spreadsheet according to the hypothetical development analysis method and determine what is the highest price you can afford to pay for the site while maintaining your hurdle rate.
This is a hypothetical exercise so there will be no need to inspect the site.
You will be given the spreadsheet template and instruction on how to populate it.
Income and subdivision assumptions:
A market analysis of nearby recent comparable land sales shows that the market is prepared to pay $950,000 for street front land of 700+ square metres, which incidentally, is the minimum allotment size under the zoning for that location. The minimum area for battleaxe allotments is 840 square metres, they are valued at $900,000.
To bring the land to its highest and best use, it will require a mix of superior street fronts, and battleaxe allotment/s.
Minimum frontage is 18 metres and the allotment must carry a 15 x 20 metre building platform and a 5 metre setback. The minimum side boundaries are 1 metre. There is no minimum rear garden setback other than 1 metre from boundary. The minimum width of any battleaxe drive is 4 metres and it must be able to house a similar sized building platform.
A list of development costs will be provided in coming weeks.
What your report must contain:
An introduction as to the tasks and Table of Contents
A well-drawn sketch plan with all boundaries marked in dimension and individual lots labelled with the total square meterage. You may need to produce this in a larger A3 format or use graph paper.
All allotments should have that building platform identified upon them in dotted line and street fronts and boundaries must provide the stated setbacks.
A calculation of the maximum number of allotments available.
Prepare and complete a DA application form available on the Hills Shire website.
A hardcopy of an excel spreadsheet containing the income and expenditure assumptions. It must show the following detail:
Your assumed number of allotments and their gross realisation based on provided information:
o Timeline: Total Project Period: 20 months
o A project interest rate of 4.75% p.a.
o Sales Commission (per lot): 2.00%
o Legal Fees (per lot): $1,500
o Advertising and promotion (per lot): $2,000
o Profit/Risk Factor: 20% and the correct way to deal with this.
o Development Costs per allotment, say, $133,785 each including contingency of 5%
o Interest on development costs, per allotment, say $20,000
o Other holding costs, per allotment, say $82,500
o Less GST exposure, say $40,000 per lot.
In the excel template it should show the most you would pay for the englobo allotment according to your assumptions as to highest and best use that would give you that 20% hurdle rate.
Information should be logically set out and clearly expressed. There should be a clear set of heading hierarchy, a contents page and the required annexures addressing all the tasks. You should also conclude your findings in a separate page, recommending the purchase price of the englobo land.
Attachment:- Assessment.zip