ABSTRACT
The property development process, as an opportunistic response to a combination of physical, economic, social, environmental and political circumstances, is a high risk area of business activity. Fundamentally however, initiating a development scheme depends on the developer, singly, or in partnership with other agencies, preparing a detailed financial appraisal of the scheme in question. That calculation must reasonably assess the likely rental income that will be generated by the development and its probable capital value on completion and compare that to the expected costs of construction including borrowing, professional fees and land acquisition, in order to determine whether an acceptable profit or return on the investment will be achieved.
