| Feasibility Analysis Villager II |
|
|
01-Feb-02 |
| Sensitivity
Analysis Continued |
|
|
| Assume
65% mortgage and higher interest rate of 7% and a five year selling period |
|
|
| The
Villager - Maple Leaf Design and Construction |
|
| Basis of
analysis - build at cost for retention - not sale |
|
| Two lots
available on Porcupine Trail - same analysis for each lot |
|
| Raised bungalow |
1350 |
sq. ft. total with attached single
garage |
|
| Upper floor |
660 |
sq. ft. |
finished |
|
| Lower floor |
516 |
sq. ft. |
finished |
|
|
174 |
sq. ft. |
unfinished |
|
| Soft costs |
|
| construction
|
8% |
of total hard costs |
|
| design |
2% |
of total hard costs |
|
|
|
| Estimated
Budget Items |
|
| 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 |
|
| Garage |
|
$8,000 |
single |
bay |
|
| 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), |
|
Total costs |
$154,595
|
Microwave (2), Toaster Oven (1) |
| Total
Area |
1350 |
sq. ft. |
|
| Cost per
sq. ft. "All in" |
$114.51
|
|
|
| Estimated
appraisal value |
$177,784
|
115% |
of total costs |
|
| Mortgage
Amount |
$133,337.82
|
75% |
|
| Investment
required to construct |
$21,256.75
|
Equity Required |
|
|
|
|
| Rent Upper
Floor |
$875.00 |
|
| Rent Lower
Level |
$575.00 |
|
| Annual Rent |
|
$16,530.00
|
5% |
vacancy |
|
| Maintenance
and Admin |
($495.90) |
3% |
|
| Net Annual
Rent |
$16,034.10 |
|
|
|
|
|
|
| Taxes
- Carmen was$1853. In 2001 |
|
| use $1.55
per sq. ft. - add |
$1,860.00 |
per yr. |
$155.00 |
per mo. |
|
| Net Net
Annual Rent |
$14,174.10 |
|
| Mortgage
Payment |
($10,693.26) |
7% |
25 |
years |
|
|
|
| Net Income |
|
$3,480.84
|
|
| ROE |
|
16% |
pa. |
|
|
| Year |
|
Mortgage |
$133,337.82
|
|
| 0 |
|
$
(21,256.75) |
|
Interest |
Principal |
| 1 |
|
$3,480.84 |
|
($9,333.65) |
$1,359.61
|
| 2 |
|
$3,480.84 |
|
($9,186.08) |
$1,507.18
|
| 3 |
|
$3,480.84 |
|
($9,028.18) |
$1,665.08
|
| 4 |
|
$3,480.84 |
|
($8,859.23) |
$1,834.03
|
| 5 |
|
$41,004.19
|
|
($8,678.45) |
$2,014.81
|
|
Total |
($45,085.57) |
$8,380.72
|
|
| Selling price |
1.00% |
inflation |
$162,480.45 |
term |
5 |
| Mortgage
Balance owing after ten years |
$124,957.10
|
|
|
| Ten
Year IRR |
26% |
|
|
|
factor |
| Monthly
payment required to carry |
|
/$1000 |
| Principal
and Interest on mortgage |
$1,108.17 |
5.0% |
25yr |
5.82 |
| together
with Taxes and return |
$1,146.83 |
5.5% |
25yr |
6.11 |
| on
investment from above. |
$1,185.50 |
6.0% |
25yr |
6.4 |
|
$1,225.50 |
6.5% |
25yr |
6.7 |
|
$1,266.84 |
7.0% |
25yr |
7.01 |
|
| Monthly ROI
on Invested at 10% |
$177.14
|
|
|
|
|
|
|
|