What formula should I use?

[jydeda]

How do you calculate the expected profits on a property development scheme?

I am trying to speculate on the profits to be expected from a proposed property development scheme on a spread sheet and would like to devise a formula that calculates the optimum selling price per unit and expected profits. Are there any formula’s that anyone is aware of

The variables I have involved so far are
1. Number of units
2. Overall build cost of the entire project
3. Recommended selling price per unit


Are there any other variables I should consider adding

[Monid]

Maybe some kind of factor for time frame, ie how many can you hold for how long?

Also possibly you might depending on how big the development is need to vary the price of the units.

David

[jydeda]

Thanks for you reply. I was thinking more in terms of a mathmatical formula that can be pluged into an Excel spread sheet. Surely there are mathematicians amoung us

[Monid]

Ah right. Most of us here tend to use our own excel spreadsheets, with our own carefully tuned formulas. I haven't tried my hand at developing as of yet so I haven't got a spreadsheet for it, otherwise I would be happy to share.

Heck we have property finders, accountants, lawyers, Tradesfolk, Philosophers, Property finders, I'm pretty sure even a few property investors!

I'm sure a mathematician isn't out of the question.
Hopefully some one else can be of more use.

David

[jydeda]

Thanks for your comment. I'm on my way to fine tuning my own method of arriving at various calculations. I find it hard to believe though that in a field where numbers are so crucial there are no current standardised ways, methods, fomulae of assessing such Aspect.