Feasibility Study Report

This report examine son market, finance, and technical feasibility of finding and identifying a home for the family. This can be done through proper procedures and methodology of ensuring that the best is obtained as per the families’ expectation and the amount of income available. Regardless of the site presentation some of important information are significant since they are the key determinants, such factors include economic and demographics which form the background of this feasibility study. Nevertheless, in this feasibility study we will be able to provide background information of social housing programs as we consider finance, social housing, supply, and identify the best models of homes that the family can fit into. Conducting a thorough feasibility study in real estate can take you some time and likely cost you more money. However, the certainty that comes from knowing that your real estate project is not a shot in the dark gives you priceless peace of mind
Methodology Used
For a successful social home program there must be well formulated procedure that will be followed so as to guide has in the process of meeting the house expectations and all the majority desire and as per the family requirement. However, there is need to target those homes that are within the family budget. It is important to understand the market in terms of the supply, government support, housing finance and a humble enabling environment. Some of the following key factors give an acute description of the general procedures and challenges that must be put under consideration so as to have a successful home within the specified environment and budget.

Figure 1: Capital Expenditure
Market Strategy and Evaluation of Enabling Environment
In determining the strategy of solving this problem there is need to note that there is a higher demand and the urge of having a low-cost home in different parts of the area we are conducting this feasibility study. Therefore, there is need to come up with a plan or a methodology on how to evaluate different markets for the likelihood of obtaining the best home for the family. Nevertheless, so as to determine the family capability of purchasing the home we evaluated the income and hence we settled score as to which home to negotiate for. Risk assessment is another important factor to consider we conducting a feasibility study since it gives a room to determine all the possible risks that can happen within the home enabling environment.
Some of the Planning Strategies
 The market strategy – This is the planning procedure at which the market will be analyzed so as to determine the supplement of the ongoing construction of homes within the specified region. The market knowledge and capacity considerations are key significant concepts that must be put in place in solving this problem.

Figure 2: Market Segmentation
 Foreign exchange risk –It is important to partner with a company that is capable of hedging the foreign exchange risk, where this can only be possible if we have willing donors who are capable of absorbing the risk in terms of the lending rates for the homes.
 Government support and ongoing initiatives – Government policy is key factor in any area were land is concerned and hence, there is need for government support in activities involving the social housing plan. Furthermore, to determine this we must ensure that the government commitment is evident and can be evaluated in terms of affordable homes, housing legislations, and the willingness to in other related services such as infrastructure development and land provision. Prior social housing activity and partnership with such organizations as the Cities Alliance are a positive indication of commitment.
 Legal and regulatory environment – The issue of home ownership revolves around titling system and the security levels in purchasing homes. In the case of the family we were able to determine that the place was secure and the required documentations were available. In this concern, the judicial system is effective in matters related to housing and law. Nevertheless, in this area there are few brokers around hence we have few chances of fraud making it more secure and safe. It is also important to note that all the home codes exist within the vicinity and are well enforced.
 Housing finance system – It is important to determine the type of house finance products that are within the existing market so as to ensure that my family can be accommodated well within this enabling environment. However, the levels of mortgage market development was evaluated in terms of GDP percentage. It’s worth noting that almost 70% of the homes are mortgaged and are paid in terms of monthly basis. The market is local but not international since it only deals with the microfinance sectors of the economy hence suitable for the family housing.

Figure 3: User Segmentation
 Housing development and housing stock – What is the level of sophistication of the private developer industry and what are sources of developer financing? What construction materials are available locally and from where are materials imported? What is the level of development of urban infrastructure and who is responsible for developing new infrastructure when needed?
Based on these key factors, SBI has developed a sample market evaluation scorecard for the family to review and adapt as necessary. Since uncovering every aspect of a project is part of the DNA of a feasibility study, you can have complete visibility on your costs. Once you have all the expenses at hand, you will then be able to tell, through the study, what overruns to expect and how to plan for them

Figure 4: Sample of the Homes Available

According to the technical, market and financial feasibility studies, this is a very economical housing project. As far as the report is concerned a brief summary of the study are included in the main text in order to emphasize the most important facts only.

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