What makes a property deal truly feasible? Key risks you should always model first!:

Hi everyone,

When evaluating property deals, I often see investors underestimating risks that can dramatically affect outcomes. A feasibility study isn’t just about crunching numbers—it’s about testing what could go wrong and how that impacts your returns.

Here are the top risks I believe every serious investor should model.

Risks to Always Test

Cost Overruns – Material, labour, and regulatory expenses can blow past estimates.

Delays in Completion – Approvals, payments, supply chain issues, or weather often cause project slippage.

Financing Variability – Interest rate hikes or stricter loan terms can reduce profitability.

Market Price / Rent Shifts – Economic downturns or oversupply can lower expected revenue.

Occupancy / Lease-up Delays – Longer vacancy periods hurt cash flow and IRR.

How to Model These Risks

Run what-if scenarios: Base case, moderate risk, and worst-case outcomes.

Build sensitivity tables: Adjust one variable at a time (e.g., +10% cost, −10% rent) to see impacts.

Stress-test financing: Higher leverage amplifies both upside & downside.

Always include a time & cost contingency.

Tools That Help

Manually modelling these risks in spreadsheets can be cumbersome. That’s why platforms for Feasibility are designed to make this easier—letting you test scenarios, run sensitivity checks, and visualize cash flows in minutes. It helps investors make better, more confident decisions before locking in capital.