Add sales and leasing
Sales lines, pre-sales and settlement, tenancies and investment sales.
Free has up to 5 sales lines (build-to-sell and leased lines together) and up to 3 tenancies; once you reach a limit, + Add Line or + Add tenant shows a padlock. Pro and Team have no limits.
Revenue is half of every feasibility, and its timing matters as much as its size: when deposits land, when settlements come in and when rent starts all change your peak debt and returns. This guide covers build-to-sell lots on the Sales tab, tenancies on the Leasing tab, and selling leased lots as investments.
Before you start
Lay out the program first. New sales lines are timed by Construction, and leases start at the Operation start by default. On Setup, check the Sales GST setting on the GST card: it’s the default for every build-to-sell line.
Step 1: Choose the GST treatment for sales
On Setup’s GST card, set Sales to Add GST (prices are ex GST), GST inclusive, Margin scheme or Not charged. Under GST inclusive and the margin scheme, the Withholding switch, Purchaser withholds GST, sets whether purchasers pay the GST to the ATO at settlement. Each line can still choose its own.
Step 2: Add a build-to-sell line
On the Sales tab, click + Add Line. Leave Type as BTS Lot and give the line a description. Enter the Unit, Qty and Sales rate (per unit); or type the Sales price (qty × rate) and the rate is worked out for you. For the Brunswick townhouses, 12 lots at $1,150,000 is $13.8m.
Set Deposit %, Sales comm. % and Pre-sale comm. %. New lines start at 10%, 1.5% and 0.5%.
Step 3: Time presales, sale and settlement
Under Timing, set the Pre-sale period, Sale month and Month settled. Each takes a program phase or Custom month; typing a month makes it custom. By default the sale falls at the start of its phase and settlement at the end, and the hint under each field shows the month and date.
Pre-sale commission is paid evenly across the pre-sale period. The balance and settlement commission come in at settlement. Deposits are held in trust until settlement unless you turn on Deposits released to developer, which brings them in at the sale.
Step 4: Escalate the price and set the line’s GST
Under Escalation, a Rate % p.a. and Applies from month grow the price to the sale month; the Total shows the escalation included.
Under GST, GST on sale defaults to the Setup choice. Pick Margin scheme for a line sold under it: GST is on the price less the land allocated to that line, with the land’s purchase price shared across the sales lines by contract price. A warning shows if a property was bought with GST, as the margin scheme may not be available.
Step 5: Add tenancies
On the Leasing tab, click + Add tenant in the Tenancy schedule. Choose Tenant type, Commercial or Residential. Under Rent, enter the Unit, Qty and rental rate; the Gross annual rent follows, and can be typed to work out the rate. A Geelong café of 180 m² at $550 a m² a year is $99,000. Commercial rent can Add GST; residential rent follows Setup’s Residential rent setting.
Under Lease, enter the Lease term (years), Annual escalation % and the Lease commencement month and Lease commitment month. Left blank, they default to the Operation and Construction starts, and the schedule flags a tenancy with no commencement month.
Step 6: Add incentives, commission, vacancy and recoveries
Under Incentives, enter a Total incentive %, Rent free, Rent abatement % (after rent free) and any Upfront fitout contribution. Under Leasing commission, vacancy & lease-up, set Agent commission %, the % at commitment, Vacancy % and Lease-up months, over which occupancy builds to fully let.
For commercial tenants, Outgoings recovered lists the Operational Outgoings lines the tenant pays a share of. Add those lines on the Leasing tab with + Add line; they take over from Land Holding Costs at the Operation start. A Recovery share override changes the tenant’s share where the lease says otherwise.
Step 7: Sell leased lots, or hold them
To sell tenancies as an investment, add a sales line and set Type to Leased Lot. Tick the tenancies under Leased lots included; each tenancy can be in one line only. Set Month sold and Month settled, then the Cap rate %, Sales commission % and Purchaser’s costs %.
The app capitalises the net rent at the month sold at the cap rate, deducts purchaser’s costs and outstanding incentives, and shows the Net sale proceeds. A leased line’s GST defaults to Not charged, as for a going concern. Tenancies in no sale earn rent to the end of the project.
Tips
- Use a separate sales line for each product type or release, so each can have its own price, timing and GST.
- Check the panel beside the Sales table: it splits BTS lots from leased lots and shows the deposits held in trust.
- On Free, combine similar lots into one line (a quantity and rate) to stay within 5 sales lines.