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RESULTS
The all-important Results window allows you to overview all of
the above inputs.
COSTS SUMMARY
The first thing you will notice is a one figure summary of each
of the above heads of cost - Land, Construction, Consultants, Local
Authority, Titling, Finance, Marketing, Pre-Sale, Post Sale, Miscellaneous
and Holding to arrive at Total Project Cost.
SUMMARY
This figure (Total Project Cost) can then be seen at the very top
of the screen followed by Total Sale Revenue.
Total Sale Revenue is the sum of your Rental Income at the nominated
yield and any Capital Income (or a combination of neither or both).
The Profit on Sale in then clearly displayed as a figure and as
a % Return on Cost.
If you have not contracted to purchase or purchased the Land by
checking the box next to Profit and Risk and then nominating a desired
Return on Cost, STANSYS™ will automatically change the Land cost
to the $ value that can be paid to achieve the desired Return on
Cost.
Your Return on Cost is then shown on an Annualised basis.
Return on Capital is shown for the nominated life of the project
and on an Annualised basis.
ANALYSIS SUMMARY
The Annual Net Rental and Av Capitalisation Rate and any Capital
Income are clearly shown so that you can easily confirm that the
Total Sales Revenue (based on these figures) is accurate.
You will have nominated the amount of Capital to be invested earlier
in the set up. Here is your chance to clearly and instantaneously
view the effects of increasing, decreasing or even deleting (100%
debt) this sum.
IRR, IRR Annualised, IRR on Capital Invested and IRR on Capital
Annualised all appear here for ease of reference. These key indicators
of the performance of your project.
You can quickly see Gearing on Completion ($), Gearing Ratio on
Costs (%) and Gearing Ration on Sale Price (%). This very powerful
feature allows you to view your project from the Lenders perspective
whether you are borrowing on the basis of the cost of the project
or its likely end value.
By changing the Capital Invested option in this screen you can
instantly see the effect on you and your lenders gearing ratios.
SENSITIVITY
A critical factor in any development is the effect that any variation
in either Yield (%) or Capital Income ($) will have on your Profit
on Sale. You simply select increments by which you expect Yield
(%) or Capital Income ($) to vary and watch the difference that
your chosen increment makes to the Profit on Sale.
CASH FLOW SUMMARY
Once you are comfortable with the feasibility that you have created
and in particular the timing options that appear in each of the
windows described above it is a very simple process to create a
cash flow for your project.
Select Tools and the Generate Cash Flow. A window will appear entitled
Step 1, Confirm Project Length. Under headings of Land Settlement,
Documentation and Construction appear headings of Start (the month/year
each of the heading items is scheduled to commence), Duration (in
months or weeks dependent on your Options setup) and Finish (scheduled
month/year).
These periods are automatically generated from your inputs made
into the Finance window described within the feasibility summary
above.
Step 2 is confirmation of your Start Date, Project Length,
Project Name, Client, Description and Job No. At this step you can
vary any of these inputs which in the first instance are automatically
generated from the information input into the feasibility.
Step 3 is Cash Flow Inputs. You can vary or accept the Initial
Capital Invested which again is automatically taken from the feasibility.
Depreciation Value allows you to input an amount on which you estimate
depreciation will be claimed and then Depreciation Rate allows you
to input a % rate at which depreciation will apply to the inserted
amount. A Starting Period (month or week) in then selected for depreciation
to commence.
As for the Feasibility, the Cash Flow automatically presumes that
you are borrowing the Total Project Cost less Initial Capital Invested.
You must confirm the Interest Rate that you expect to pay on this
sum and whether interest will be Capitalised or Interest Only.
If you wish to see Profit after Tax insert the Tax Rate applicable
to your entity/client and tax will automatically be calculated at
the selected rate on Profit after Depreciation.
Select or de-select the box entitled Only generate items that have
a projected figure and you are ready to select Generate.
The cash flow appears with similar headings, now referred to as
Rows as the various options that you have included within your feasibility.
In other words you will see each item of expenditure
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