Here is your glossary for the terms used in the articles we have written:
DA (Development Approval) The development application provides information about the proposed development to enable the Council to assess the application properly.
Profit and Loss (P&L) statement is a financial document that summarises revenues, costs, and expenses that happen during a specific period. P&L statements are usually prepared for each quarter or an entire fiscal year.
GRV is the gross realization value of a development or construction project. When the product is complete and ready to sell, it’s the sum of its value.
TDC is total development costs. It is the total costs you’ll incur to get from start to finish with your project. It includes your property purchase costs and the cost to build what you intend to sell, such as townhouses or apartments. TDC also takes development finance interest rates into account. You can include council rates and insurance, the costs of marketing your apartments or houses, and real estate agent charges, too. TDC covers every expense you’ll meet from the day you purchase a site to the minute you hand over the keys to your last buyer.
Loan to Value Ratio (LVR) is calculated by dividing the loan amount by the property’s value.
Return on investment (ROI) is a financial metric widely used to measure the probability of gaining a return from an investment.
SME (small-to-medium enterprise), is a term used to describe a range of businesses based on the number of employees or annual turnover.