FINANCIAL FEASIBILITY ANALYSIS OF SUBSIDY HOUSING PROJECT INVESTMENT IN MAJALAYA
Mega Regency is a family-based company that is established in 2000 in Bandung. Since its beginning, Mega Regency continues to carry out development in the property sector, either in the form of housing, or as a property sales agent. At present Mega Regency gets an offer from one of the landowners in...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/41343 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Mega Regency is a family-based company that is established in 2000 in Bandung. Since its beginning, Mega Regency continues to carry out development in the property sector, either in the form of housing, or as a property sales agent. At present Mega Regency gets an offer from one of the landowners in Majalaya Regency Bandung to cooperate in making a housing estate. The rise of low-cost housing or subsidies has made landowners collaborate with Mega Regency to increase the value of the land. Having the opportunity like this, Mega Regency made a housing project plan to find out the feasibility of the land and the benefits of the collaboration. The main objective of this study is to analyze housing projects regarding the financial feasibility of the project, variables that greatly affect returns, return on project results in several conditions, and how long it will take for the return of capital.
In this study a structured interview was conducted to the community in the Majalaya area to find out people's preferences for residential products that are in accordance with the housing market in Majalaya. Besides the Community, interviews were also conducted with the company and landowners to obtain necessary data related to the project. The data obtained is used to make financial projections using discounted cashflow and the method is used to find out the results of these financial projections in their present value. Some methods used are Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PP).
The results of the study show that the housing project is feasible as financially. This project generates a Net Present Value of IDR. 1,161,927,392.89, an IRR of 33.15% and a Payback Period of 1 year and 2 months. The variables that affect this project are sales, development cost, and average weighted cost of capital. |
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