Hold, or discount to clear?

Completed stock is not free to keep. This puts the cost of holding it on a residual stock facility next to the discount you would need to take today to clear the same dwellings — so the decision is a number rather than a feeling.

Assumptions, stated rather than hidden. Interest accrues monthly on the drawn balance only, and the balance reduces as dwellings settle. Sales are assumed to complete evenly at the rate you set, and settlement is assumed immediate on sale. Outgoings cover rates, insurance and owners corporation per unsold dwelling. Selling costs are excluded from both sides because they apply either way. The breakeven discount is the total holding cost expressed against gross realisation — it is the discount that would leave you no worse off clearing today. Tax, GST and the margin scheme are not modelled. General information only, not financial product advice or credit assistance, and not an offer of finance.