It is worth noting that cash flow, or the lack of it often proves to be the biggest downfall for many property developers, with many also struggling to come to terms with overspending and underfunding. This is because without a carefully constructed budget or detailed development appraisal in place, the risks associated with a development opportunity should be considered to be unmanaged and consequently the chances of achieving a successful project outcome are significantly reduced.īeware – Leaving things to chance is not a good approach and should carry a serious financial health warning for any prospective developer! Property Development AppraisalsĪ well thought out property development appraisal will help you identify your cash flow needs, a critical success factor for any developer. The words “property development” and “development appraisal” should go hand in hand. In property development circles the residual method of valuation is an essential valuation tool for any aspiring developer as it helps to quickly identify the value of a development site, land or existing buildings that have the potential to be developed or redeveloped.
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