Residential Real Estate Financial Model (Build & Sell)
Originally published: 02/12/2024 12:48
Publication number: ELQ-28424-1
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Residential Real Estate Financial Model (Build & Sell)

This is a build & sell financial model for a residential real estate project. It shows financial viability of the project and should assist in decision making.

Description
This is a build & sell financial model for a residential real estate project. It shows financial viability of the project and should assist in decision making.
In the model, you can adjust the number of units for each typology (i.e. one bedroom, 2 bedroom or three bedroom units). The sizes for each typology can also be adjusted and this will affect the total gross built area which drive the capital expenditure as the cost are given on a per square meter basis.
The selling prices for each typology are also adjustable. There is a filed provided to show the escalation in selling prices as the project will take two years. The number of years to implent the project can also be flexed accordingly
The project can be funded via a mix of debt, equity injection or pre-sale of some units while still under construction. 
There is a schedule to show the inflow and outflows of cash from pre-sales, debt, equity etc. This is useful for planning purposes and setting targets for future equity injections, pre-sales targets and speed of implementation.
In addition, the model has a performance summary to show the econimic viability of the project. It shows the Return on Investment (ROI), Return on Equity (ROE) as well as the Payback Period, NPV and IRR.

This Best Practice includes
One Excel Document

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