Feasibility Study of Residential Duplex in Australia

Running head: RESIDENTIAL DUPLEX ON AUSTRALIA
Feasibility study
Name of the Student
Name of the University
Author Note

1
RESIDENTIAL DUPLEX ON AUSTRALIA
1.0 Introduction
The feasibility study is the analysis of the construction project which helps to make sure
that the project is executable on selected time as well as within the selected budget
(Aapaoja and Haapasalo 2014). Generally, the feasibility study of any project is analysed
with the help of time as well as budget. But the other two factors like micro environment
business drivers and macro environment business drivers are also included in this
feasibility study of a particular project (Balo 2015). Here, the residential duplex will be
constructed in Warwick in the state of Queensland to increase the growth of the
population more than 10,000. The overall budget will be estimated at $800,000 and the
overall time period will be settled at 9 months (Fung et al. 2014). The feasibility study of
the construction project must include the project constraints, micro-environment
business drivers and macro-environment business drivers (Gusakova and Gusakov
2015). This following represents the feasibility study of the particular case project which
will has to complete on time within the proposed budget.
2.0 Feasibility study of the project
The feasibility study is one kind of analytical report of any construction project. With
the help of this feasibility study it may know about the project that is executable
within the budget and time or not (Hubbard et al. 2015). Generally, for various type of
projects, factors must be difficult and feasibility is touched at that point where all the
factors are suitable and appropriate for this particular project.
This case project is grounded on the construction of the residential duplex and
therefore the feasibility report is based on such particular factors.
Project Feasibility Study

2
RESIDENTIAL DUPLEX ON AUSTRALIA
1. Land
Information
2. Purchase
Information
Land Address: 21, Walker Street East,
Warwick, Queensland
Land Price: 3,00,000
Suburb/Town: Warwick Stamp Duty: $12,000
Land Size: 12,000 square feet Conveyancing
Fees:
$7,000
3. Local Council
Information
4. Construction
Information
Local Council
Name:
Warwick City Council Builder Name: CPD Building
Services Ltd.
Minimum Land
Allotment Size:
8000 square feet Duplex
Construction
Costs:
$3,50,000
Development
Planning Fees:
$44,000
Monthly Council
Rates:
$2,000
5. Duplex
Information
Duplex Estimated
Value:
$8,00,000
Monthly Rental
Income:
$1,00,000
Monthly Agent Fees: $20,000
Monthly Landlord
Insurance:
$6,000

3
RESIDENTIAL DUPLEX ON AUSTRALIA
6. Project Results
Equity Value
=$100,000
Duplex Value of $800000 le
ss
Total Outgoings
of $300000
equals $500000
Net Monthly Rental
Income = 70,000
Gross Monthly Rent of
$100000
le
ss
Holding Costs of
$20000
equals $80000
Planning Permission – In the construction project, permission from the higher
authority is necessary for execution of this project in an appropriate way. In the case
of building or any large type of concrete structure, it is required to take the permission
from the government in terms of construction permission (Irizarry and Costa 2016). In
some cases, permission also require for the utilization of land in construction purpose
or construction license. Not only that issues, but also other type of issues like dispute
on land or overlapping on the other’s land etc. and therefore the project is not referred
as feasible. In the case project, no certain dispute issues has not been seen and the
permission will take from the local council of the place (Jebelli et al. 2018).
Assessment on environmental reflection – In the construction project, it must be
concern about the environmental reflection which is the serious factor. Because, due
to the construction project, the surrounded environment may be polluted (King et
al.2014). Due to the construction, the reasons for the pollution are mainly the
dumping of the construction materials, fly ash as well as noise. It must concern that
the pollution may not happen due to any construction project (Krüger et al. 2014). To
reduce the environmental pollution, it must be maintained some rules in the case of
construction.
Legal approval – In some case, it has been observed that the selected land for the
construction project may have some legal issues due to the dispute or various claims