| Feasibility Analysis Villager II |
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|
01-Feb-02 |
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| Assume
65% Mortgage, 6% interest rate, ten year selling period |
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| The
Villager - Maple Leaf Design and Construction |
|
| Basis of
analysis - build at cost for retention - not sale |
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| Two lots
available on Porcupine Trail - same analysis for each lot |
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| Raised bungalow |
1350 |
sq. ft. total with attached single
garage |
|
| Upper floor |
660 |
sq. ft. |
finished |
|
| Lower floor |
516 |
sq. ft. |
finished |
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|
174 |
sq. ft. |
unfinished |
|
| Soft costs |
|
| construction
|
8% |
of total hard costs |
|
| design |
2% |
of total hard costs |
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| Estimated
Budget Items |
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| Lot Cost |
|
$34,000 |
|
| Well |
|
$0 |
installed |
|
| Septic
Field |
$9,000 |
|
| Driveway
and Culvert |
$1,500 |
includes city charge $840. |
|
| Asphalt |
|
$1,100 |
|
| Deck |
|
$1,000 |
|
| DCs |
city |
$4,500 |
needs update |
|
|
region |
$1,608 |
needs update |
|
|
schools |
$444 |
needs update |
|
|
address |
$40 |
needs update |
|
| Building
Permit |
$1,019
|
$10.50 |
/$1,000 H.C.+$40/fixture |
|
| Hard
Construction |
$65.00 |
cost per sq. ft. finished upper
floor |
|
|
$40.00 |
cost per sq. ft. finished lower
floor |
|
|
$15.00 |
cost per unfinished lower floor |
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| Garage |
|
$8,000 |
single |
bay |
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| Total Hard
Construction Cost |
$74,150
|
|
| Site Super/Labour |
$2,500 |
$3,750 |
3 |
months |
|
| Profit Margin |
6% |
$4,449 |
|
50% |
half time |
|
| Soft Cost
Construction |
$5,932.00 |
|
| Soft Cost
design |
$1,483 |
|
| Marketing
Cost |
$0 |
|
| Appliances |
w/d (2 sets) |
$2,500 |
stove (1), Fridge (1), Bar Fridge
(1), |
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|
Total costs |
$154,595
|
Microwave (2), Toaster Oven (1) |
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| Total
Area |
1350 |
sq. ft. |
|
| Cost per
sq. ft. "All in" |
$114.51
|
|
|
| Estimated
appraisal value |
$177,784
|
115% |
of total costs |
|
| Mortgage
Amount |
$115,559.44
|
65% |
|
| Investment
required to construct |
$39,035.13
|
Equity Required |
|
|
|
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| Rent Upper
Floor |
$875.00 |
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| Rent Lower
Level |
$575.00 |
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| Annual Rent |
$16,530.00
|
5% |
vacancy |
|
| Maintenance
and Admin |
($495.90) |
3% |
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| Net Annual
Rent |
$16,034.10 |
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|
|
|
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| Taxes
- Carmen was$1853. In 2001 |
|
| use $1.55
per sq. ft. - add |
$1,860.00 |
per yr. |
$155.00 |
per mo. |
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|
| Net Net
Annual Rent |
$14,174.10 |
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| Mortgage
Payment |
($8,528.15) |
6% |
25 |
years |
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|
|
|
| Net Income |
$5,645.95
|
|
| ROE |
|
14% |
pa. |
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|
| Year |
|
Mortgage |
$115,559.44
|
|
| 0 |
|
$
(39,035.13) |
|
Interest |
Principal |
|
| 1 |
|
$5,645.95
|
|
($6,933.57) |
$1,594.58
|
|
| 2 |
|
$5,645.95
|
|
($6,807.19) |
$1,720.96
|
|
| 3 |
|
$5,645.95
|
|
($6,673.23) |
$1,854.92
|
|
| 4 |
|
$5,645.95
|
|
($6,531.24) |
$1,996.91
|
|
| 5 |
|
$5,645.95
|
|
($6,380.72) |
$2,147.43
|
|
| 6 |
|
$5,645.95
|
|
($6,221.17) |
$2,306.97
|
|
| 7 |
|
$5,645.95
|
|
($6,052.05) |
$2,476.09
|
|
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| 8 |
|
$5,645.95
|
|
($5,872.79) |
$2,655.36
|
|
| 9 |
|
$5,645.95
|
|
($5,682.76) |
$2,845.38
|
|
| 10 |
|
$83,500.51
|
|
($5,481.34) |
$3,046.81
|
|
|
Total |
($62,636.06) |
$22,645.42
|
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| Selling price |
1.00% |
inflation |
$
170,768.59 |
|
| Mortgage
Balance owing after ten years |
$92,914.03
|
|
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| Ten
Year IRR |
19% |
|
|
|
|
factor |
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| Monthly
payment required to carry |
|
/$1000 |
|
| Principal
and Interest on mortgage |
$1,152.85 |
5.0% |
25yr |
5.82 |
|
| together
with Taxes and return |
$1,186.36 |
5.5% |
25yr |
6.11 |
|
| on
investment from above. |
$1,219.87 |
6.0% |
25yr |
6.4 |
|
|
$1,254.54 |
6.5% |
25yr |
6.7 |
|
|
$1,290.36 |
7.0% |
25yr |
7.01 |
|
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| Monthly ROI
on Invested at 10% |
$325.29
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