Not Like That. — Calculator

The project

Fund's available cash

Land

Construction

Consultants, council, holding

Contingency % of build

Expected end value

Months to settlement

Stress it

Chapter 16. Builds run over and markets move. This is the test that should decide it.

Construction over by %

End value under by %

Or build and hold

Rental yield on finished value %

Large fund returns %

The honest return

—

A year, after tax and costs, as trading stock

—

Profit after tax

—

Total invested

—

Cash needed, with contingency

—

Doing nothing returns

Where the money goes

Green is what comes back. Red is what leaves. Orange is what is left.

How sensitive is it?

Chapter 15. There is far less room in a development than the feasibility suggests, because you cannot borrow to absorb a surprise.

If the end value moves

End value	Profit	A year	Beats doing nothing?

If the build blows out

Construction	Profit	A year

Before you buy any land. This is arithmetic, not advice. A fund cannot borrow to finish a development, cannot take an uncapped contribution to rescue one, and cannot accept free help from a related party without creating non-arm's length expenditure. Profit is taxed as ordinary income with no CGT discount if the fund is carrying on a business. Read SMSFRB 2020/1 and TA 2023/2, and consider a private ruling before you commit.