Why residual land value matters
Most development mistakes start with paying too much for land. RLV protects margin by starting with the finished product value and working backwards.
Simple worked example
| Item | Example |
|---|---|
| Gross realisation | $2,400,000 |
| Development and soft costs | $1,450,000 |
| Finance, selling and contingency | $180,000 |
| Required margin | $300,000 |
| Residual land value | $470,000 |
Generic educational example only. Real feasibility depends on researched local end values and site-specific costs.