I wanted to determine what a developer profits on a condo Development, so I got my accountant to help me put together a simple spreadsheet and do a cost analysis with some basic facts. My numbers are estimations of what condo developers in Toronto profit when they building developments and sell all the units. I used the Eau du Soleil condo as an example for this project. I will fine tune the calculations so that, in the future, I can bring you more accurate data, and help buyers and developers pivot to price points that can accommodate on both sides.
What Can A Developer Expect to Profit on a Condo Sale?
| Developer Variables | Variable Costs |
|---|---|
| For the Developer of | Eau du Soleil Condos |
| Cost of Construction | $219,275,000.00 |
| Land Aquisition Cost | $50,000,000.00 |
| Number of Units | 1253 |
| Cost Per Unit | $214,904.23 |
| Market Rate Interest Rate | 3.00% |
| Finance Cost (at Market Rate over 5 years) | $8,078,250.00 |
| Profit Per Unit ( For Developer): | $137,786.71 |
| Total Development Profit: | $172,646,750.00 |
| Total Retail Value of Development | $450,000,000.00 |
What Can A Buyer Expect to Profit on a Condo Purchase ?
Average Retail Price Per Unit: $250,000.00
Cost of Unit for Developer: $137,786.71
Amortization Rate (For Buyers): 2.99%
Amortization Cost over 25 years: $105,268.52
Montly Mortgage Cost: $1,184.23
Rental Rate Expected at Market Rate: $1,261.20
Rendering of Project
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