1. Define the question first
Before opening a model, write down what you're trying to learn. "Is this site worth chasing?" needs an RLV. "Is this scheme ready for IC?" needs a full feasibility with sensitivities. Different questions need different depth.
2. Lock the site facts
Lot size, zoning, FSR, height, allowable GFA. These constrain the scheme before any pricing or cost work matters.
3. Test the scheme
Number of dwellings, mix, car spaces, levels. The most common error is over-fitting the scheme to the site without checking the unit mix matches the suburb's market depth.
4. Price the revenue
Pull comparable sales for each unit type. No older than three months. Apply a sober view — you're pricing at PC, not today.
5. Cost it
Construction rate from current QS or recent build. Professional fees 7–10%. Statutory contributions per current schedule. Contingency 5–7.5%. Marketing and selling 2–3% of GRV.
6. Finance it
Equity 25–30% of TDC, senior debt at current bank rates, drawdown logic appropriate to the program. Read peak debt off the cashflow.
7. Read the outputs and stress-test
Profit on cost, margin, IRR, peak debt, peak equity. Then ±5% revenue, ±5% cost, +100bps rate, 3-month delay. If the project survives the sensitivities, it's IC-ready.