Residual Land Value works backwards from a target return to the maximum land price the project can support. All other cost and revenue assumptions are held constant.
Enter the target margin at the top of the report. Feasly back-calculates in real time.
Three Outputs
Land Purchase Price: the land price currently entered in Land
Maximum Land Price: the maximum supportable at the target margin
Surplus / Shortfall: the difference between the two
Acquisition costs, funding interest and funding fees are held at current scenario values. They are not recalculated against the maximum land price.
When to Use It
Before committing to a land price, or when testing whether a site under offer still works at a required margin.
All scenarios in the project display side by side. Useful for testing different cost or revenue assumptions against the same target margin.
