In general terms, a feasibility study is the assessment of an idea with the purpose of identifying potential problems. The main goal is to determine whether the idea will work and if you should pursue it. While a feasibility study can really be done on any business venture, we specialise in developments and real estate and whether they will be financially beneficial.
What is a Feasibility Study?
Why do I need a Feasibility Study?
It’s a good idea to have a feasibility study done before you invest a lot of time and money into a project. Feasibility studies allow you to get a better idea on what a project is going to cost and if it is going to benefit you in the long term financially. It’s worth it to spend a few extra dollars getting one of these done before you put a big chunk of money into something that might have some risks you are unaware of.
How can Asset Economics Help?
Asset Economics has developed sophisticated feasibility modelling tools to assist our quantity surveyors in assessing financial feasibility. These modelling tools are supported by market research, a databank of market-tested assumptions and performance benchmarks.
The Asset Economics development feasibility model is a powerful, flexible and easy to use tool that allows a feasibility analysis and real estate valuation. From a comprehensive and intuitive set of user inputs, it calculates key investment performance indicators, such as Residual Land Value, Profit, Margin, NPV and IRR.
Using the sensitivity and probability analysis tool allows simple yet detailed risk assessments to be performed on the project with ease. The tool provides the ability to compare multiple options to ensure that the best financial outcome for the development site is achieved.