Before You Count the Sales: Map Settlement Cash Flow in Your Feasibility

A feasibility may show profitable sales while the project still runs short of cash. The usual reason is timing: a contract has been signed, but settlement proceeds are not yet available to pay debt, tax, consultants, defects or the next stage.

A capable developer distinguishes forecast revenue, exchanged sales and cleared cash. Profit is an outcome measured over the project. Liquidity is the ability to meet obligations on the dates they fall due.

Use the CASH map

1. Contracts: record expected exchange, conditions, deposits and settlement dates for each sale or exit.
2. Availability: identify when funds are actually cleared and what the lender, stakeholder or contract controls.
3. Senior obligations: map debt repayment, interest, selling costs, tax-related amounts and other priority deductions with specialist input.
4. Holdbacks: allow for retentions, defects, disputed items, settlement adjustments and delayed lots.

Australian Government cash-flow guidance recommends recording money coming in and going out and using forecasts to identify shortages. Its risk guidance recommends assessing and controlling material risks. A development cash-flow model needs project-specific advice because loan documents, sale contracts, tax treatment and settlement rules vary.

A clearly labelled hypothetical

A four-townhouse project forecasts settlement of all dwellings in June. The base feasibility places the full net revenue in one month. The CASH map instead staggers settlement across eight weeks, assumes one buyer needs an extension, records lender release requirements and retains a defects allowance. Interest and operating costs continue longer than the profit summary implied, increasing peak funding need.

Stress the dates as well as the prices

• What if one settlement moves by 30, 60 or 90 days?
• Can earlier settlements occur independently, or are titles, occupation approvals or lender releases linked?
• Which costs continue until the final lot settles?
• Which receipts are restricted rather than available for general use?
• What cash buffer remains after priority payments?

Do not insert tax or finance percentages from a generic example. Ask the accountant, solicitor, broker and lender to confirm the treatment and mechanics that apply to your structure and jurisdiction. Keep their evidence linked to the cash-flow version.

The Think Property Club System connects the programme, feasibility and funding schedule. Strategy determines possible exits, while Specialists test the contract, finance and tax mechanics that decide when reported revenue becomes usable cash.

Your next action

Add a separate settlement schedule to one feasibility. Move the slowest settlement back by 60 days and calculate the effect on interest, holding costs and minimum cash headroom.

Key Takeaway

A sale price supports profit only after the project survives the time and obligations between contract and cleared cash.

Your Turn

Which project obligation would become difficult if your final settlement arrived two months later than forecast?

Continue learning

• Peak debt feasibility
• Development timeline feasibility

Sources and boundaries

1. Australian Government, Set up a cash flow statement (Undated current guidance; accessed 11 September 2026)
2. Australian Government, Make a risk management plan (Undated current guidance; accessed 11 September 2026)

This article is general education, not personalised planning, legal, financial, tax, insurance or building advice. Requirements and outcomes vary by jurisdiction, site, contract, structure and circumstances. Check current information with the relevant authority and appropriately qualified advisers.