Why Standard Templates Fail in Australia

Most feasibility models are built for standard progress payment structures. In Australia, off-the-plan sales work differently — and that difference can quietly destroy your project's cashflow.

The 10/90 Rule: How Settlement Actually Works

In Australia, off-the-plan buyers pay just 10% at contract. The remaining 90% isn't due until practical completion — often 2 to 3 years later.

• 10% — Day 1: buyer deposit on exchange of contracts
• 90% — Completion: balance due at practical completion (2–3 years later)

The Trap: Front-Loaded Equity & Heavy Interest Carry

• Equity is front-loaded — without the 90% settlement, developer equity must cover far more of the construction cost upfront; standard templates underestimate this dramatically
• Interest accrual is heavier — construction loan interest compounds over the full build period with no offsetting settlement receipts; the carry is much larger than generic models predict
• Loan sizing is off — if your model doesn't account for delayed receipts, your construction loan will be undersized from the outset

A 3-Month Delay Can Blow Up Your Interest Reserve

In a 10/90 structure, the 10% deposit is kept in escrow and you don't receive both the 10% deposit and the 90% settlement capital until completion. A delay doesn't just push your timeline — it extends your interest-bearing period with zero offsetting income.

A 3-month delay doesn't just cost time. It compounds interest on the full loan balance, with no settlement receipts to offset it. Your interest reserve can be exhausted before completion.

On-time completion: interest reserve intact, 90% received at practical completion, project viable. Three months late: interest reserve blown, no 90% receipt, cashflow crisis at Month 18.

How Generic Excel Templates Get It Wrong

Standard feasibility templates assume standard progress payment cashflows — staged receipts throughout construction. They do not model the 10/90 structure natively.

• Assume staged settlement receipts — templates treat buyer payments as evenly distributed, not deferred to completion
• Understate the construction loan — without the correct cashflow timing, loan sizing is optimistic and equity gaps appear mid-build
• Miss the interest reserve risk — delays are treated as minor, not as events that can exhaust your entire interest reserve

FeasiBuild: Native 10/90 Cashflow Waterfalls

FeasiBuild is built for the Australian market. The 10/90 structure isn't a workaround — it's the default.

• Automatic 90% deferral — the cashflow waterfall delays the 90% receipt to practical completion, no manual adjustments required
• Correct interest carry — construction loan interest is calculated on the true outstanding balance, reflecting the delayed settlement reality
• Proper loan sizing — your construction loan is sized to the actual equity gap, not an optimistic template assumption

Run your first Australian scenario free on the Explorer tier — and see what your template has been hiding. feasibuild.app