16234 Lecture Notes - Lecture 8: Factor Analysis
Document Summary
Why/where is it used: underdeveloped sites, absence of vacant land sales, to test whether existing use of land is highest and best use. Development past present & future: allows the developer to match development applications to sales, in order to build a site sale profile. Lot size & frontage: residential density development. Fsr & setbacks: commercial & industrial. 700 m2 plus half the width of the road x minimum frontage. 700 + 18 x 16/2 = 844 m2. Profit and risk factor: deduced from other developments. [gross realisation + selling costs] less [land costs + acquisition costs + (loss of interest on. Land + rates and taxes + development costs)] = margin as a percentage of costs. Analysis of the components of the residual/hypothetical development method. Deducing the profit and risk factor from a development. 50 lots rates & taxes @ p. a. 180,000: land cost, acquisition costs, loss of interest: 2 years @ 8: rates and taxes:
