VALUATION OF A RESIDENTIAL FLAT?

KNOWLEDGE BANK FROM B KANAGA SABAPATHY

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Message from B. Kanaga sabapathy 14.08.2023

HOW TO CALCULATE THE BOOK VALUE OF A RESIDENTIAL FLAT?

Question :

How to calculate the book value of a residential flat?

My opinion :

1. A flat consists of two components, namely UDS of land and super built up area of the respective flat.

2. Book value of land does not change. It is the same as the purchased price as per the sale deed.

3. The historical cost of the building portion is the basis for calculating the written down value. It is to be noted that only statutory depreciation is to be applied.

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With best wishes,

B. KANAGA SABAPATHY
bkvaluer@gmail.com
www.bkanagasabapathy.com

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About the Author:-

Mr. B. Kanaga Sabapathy born in 1951, is a Civil Engineer who belongs to the 1972 batch of Regional Engineering College, Tiruchirappalli in Tamilnadu.
He is a Registered valuer of the Central Board of Direct Taxes, a Professional Engineer and also a Chartered engineer. Valuation is his main profession..
He was the National Vice-President of the Institution of Valuers (India) for 11 terms.
He is a regular contributor of articles in the Indian Valuer Journal from the year 1985. His articles especially his regular column “Questions & Opinions” are very popular among the practising valuers in India.
His book “Guidelines on Valuation for Banks” (2002) is used to be referred by many banks. The valuation formats designed by him were accepted and adopted as the formats by many banks in the country.
His son K. Arun and daughter B.K. Aruna are also approved valuers and they also contribute articles to the Indian valuer journal.
His guru: Mr. C.H. Gopinatha Rao, Chennai.
His mentor: Mr. R.K. Gandhi, Mumbai.
His role model: Mr. S. Rajaratnam, Chennai.
His best students: Thousands of valuers in the country