Hey,
Buying or selling land or property is not only a massive financial commitment, it is also a massive mental commitment.There is so much pressure to pick the right piece of land. In this segment, I will share with you how to find land value. It will help you understand the market value of the land and make a smart decision. Take a look below to know more.
How to know land value ?The value of land depends on multiple variables and each of them impact your investment portfolio. Methods to know land value are :
- Guidance Value method :
The state government decides a minimum rate or value at which the property or land should be registered. This is called guidance value/circle rate or ready reckoner rate.
- Land and Building method:
In this method, the land value and the building value are calculated separately. Both the variables are added together in the end. This is also called the Cost Approach method. Value of property = Reconstruction Cost – Depreciation + Land Value
- Development method : Here, land which has development potential is calculated with the formula.Land = Gross Development Value – (Construction + Profit + Other fees). This method is also called the Land and Building Method.
Another tip for how to check land value.
- Comparative method :
This is also called the sales comparison approach. Here, the price or value of land is calculated by comparison with other pieces of land.
- Belting method : This method calculates land on the basis of road frontage. The plot is divided into three belts and valued at different rates.
If you have any more questions about how to find land value. You can calculate land value from one of the methods given above.
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Authors Of The Question
How to check land value ?
Jayesh
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2 Year
2022-03-22T09:41:47+00:00 2022-03-22T09:41:48+00:00Comment
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