Land scarcity in urban areas has increased the value of any property. Due to the scarcity of land, the property prices in major cities are touching the sky. The value of property mainly depends on age of property and location.
Generally, in India, 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. The value of property decreases year by year and so does the construction of the property.
This is because the concrete starts getting degraded which affects the quality and safety of the building.
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 5 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 = 5 : 60 = 1:12
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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How to arrive at the value of a property
Rangan
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2020-11-17T13:43:21+00:00 2025-02-13T18:46:33+00:00Comment
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