Real estate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2013 Dear Sir,
I am working with company which is kenya.
It is in real estate business. It purchase a land from landlord against that they give some flats in that building.
Sir, now they provided me cost of construction per sqft without any bifurcation of expenses individuly. They will built 90 flats . there are 64 flat need to be sold to cover the cost of construction. Out of balance they will give 13 flats to landlord and balance will be their profit.Sir now they are demanding from me working for project is profitable or not. Do you have work sheet for that, if yes pls mail me. How i can present to management that you should go for project. pls give me some workings.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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03 June 2013 They must have made and executed the development agreement and if it is given on the basis of sq. ft. it is the general practice and you need not worry about the bifurcation as you can calculate your sq. ft. rate as sales consideration.