Property Mastermind Podcast with Bob Andersen & Hilary Saxton

Ep. 189 - Understanding Financial Feasibility in Property Development


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Financial feasibility is the backbone of every successful property development. Without the right calculations, even the best sites can turn into financial disasters. In this episode, Hilary Saxton and Bob Andersen break down what goes into a financial feasibility analysis, why it matters, and how to ensure your numbers stack up before committing to a project.

Understanding feasibility will help you avoid costly mistakes and secure profitable projects. From land costs to construction expenses, finance charges, and council fees, this episode provides a step-by-step guide to mastering feasibilities so you can confidently assess any development opportunity.

Episode Highlights

  • [00:00] Welcome & Introduction – What financial feasibility is and why it’s critical in property development.
  • [03:11] Understanding Financial Feasibility – The key components of a feasibility study and how it predicts project success.
  • [05:29] Common Mistakes in Feasibility Studies – Why developers often overestimate profits and underestimate costs.
  • [07:30] Breaking Down Sales & Revenue Projections – How to accurately estimate what your finished product will sell for.
  • [09:42] The Biggest Costs to Get Right – Why land and construction costs make up 80% of your expenses.
  • [10:55] Finance Costs & Interest Rates – How loan costs can impact your bottom line and what to account for.
  • [13:01] The Dangers of Relying on Agent Feasibilities – Why real estate agent estimates can mislead developers.
  • [16:11] Real-Life Feasibility Failures & Lessons Learned – Examples of projects that went wrong due to poor feasibility.
  • [20:00] The Impact of Market Timing – Why finishing a project near Christmas or in a slow market can hurt sales.
  • [23:38] Risk Mitigation Strategies – How to create financial buffers and plan for unexpected delays.
  • [25:42] Profit Margins for Different Development Types – What margins financiers require for subdivisions, duplexes, and apartments.
  • [29:24] How to Use a Feasibility Calculator – Tools and methods to calculate your project’s financial viability.
  • [35:30] Mastering Feasibility for Long-Term Success – Why collecting and refining feasibility data helps you scale up.
  • [38:53] Final Takeaways – Recap of the key points and how to get started with feasibility analysis.

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Property Mastermind Podcast with Bob Andersen & Hilary SaxtonBy Bob & Hilary - Property Mastermind


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