A speculative developer is considering purchasing a site for the construction of 40 detached estate houses. The selling price of the houses is GHS 455,000 each. The cost of the land, inclusive of legal charges, is GHS 1,050,000. The developer requires a profit of 16% of the Gross Development Value (GDV). What is the allowable amount for building costs? Assume Legal, agent's and advertising fees to be 3% of GDV.

A speculative developer is considering purchasing a site for the construction of 40 detached estate houses. The selling price of the houses is GHS 455,000 each. The cost of the land, inclusive of legal charges, is GHS 1,050,000. The developer requires a profit of 16% of the Gross Development Value (GDV). What is the allowable amount for building costs? Assume Legal, agent's and advertising fees to be 3% of GDV.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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