Like other things, constructed properties also have their own age. The concrete structure degrades with time which leads to depreciation in the value of the property. Depreciation of property value is nothing but the decrease in the selling value of a property. Generally, the depreciation value is calculated as the 'factor' product of the total value from the time the property was bought and the construction age of the property.
You should know that depreciation value is calculated only on the constructed property and not on the land. So, if you own the land, then there won’t be any depreciation value as such.
Calculating the depreciation value:
Normally, the average lifespan of any building, especially an independent house, is 60 years. The depreciation value of the building component is calculated by taking out the ratio of years of construction and total age of the building. For example, if you are selling a property after 10 years of construction then the selling price of the structure will be calculated by the following formula:
Number of years after construction: Total age of the building = 10 : 60 = 1:6
The remainder of the useful age is the actual selling price of the construction. Now, simply add the current market value of the property of your property. Whatever the result would be, it would be the reasonable selling price of the structure.
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Authors Of The Question
How Built property value depreciation works in india
Manoj
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4 Year
2020-11-16T23:42:32+00:00 2021-06-10T14:21:48+00:00Comment
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