NEWS & BLOGS EXCLUCIVELY FOR INFORMATION TO ENGINEERS & VALUERS COMMUNITY
VALUE OF LESSOR’S INTEREST Value of Lessor’s interest in land would comprise of following three parts based on rights held by Lessor as per lease terms. The capitalized value of lease rent receivable from the Lessee under a lease contract, for the unexpired period of the lease. Present value of the right of reversion of […]
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Yield refers to the earnings generated and realized on an investment over a particular period of time, and is expressed in terms of percentage based on the invested amount. Yield includes the interest earned or dividends received from holding a particular security. Depending on the valuation (fixed vs. fluctuating) of the security, yields may be
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In the evaluation of investment projects the discounted cash flow method can provide a useful means of testing financial feasibility. The discount rate will generally be the minimum rate of return required by the investor over the period of the cash flow. If the total of the discounted cash flow over the period is zero
Book value Method In Book Value Method, historic cost of the asset in the year of acquisition is taken as basis and with the help of cost index figures (Multiplying factors for different years, indicating price rise in the market due to inflation and other factors like variation in cost of materials and labour), replacement
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Physical depreciation This is very common. The physical depreciation occurs due to usage of the asset. It is the normal wear and tear of the asset. All similar objects do not observe similar depreciation. Quantum of this depreciation depends on several factors. Manner of usage Environmental aspect Natural forces aspects Accidental Aspects Economic obsolescence: These
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Water pollution is defined as the presence of impurities or alteration of its physical, chemical or biological characteristics which is harmful and may cause destructive effects on human as well as the health of the environment. The water which is not chemically pure but chemically inert, and which is free from any physical and biological
This technique of land valuation is also an indirect method of deriving land rate by residual technique and not by direct comparison of open land sales. This technique involves the preparation of a hypothetical building project scheme first. Then valuer is required to work out sale value of flats/shops designed and planned under a hypothetical
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When we value a property by rental method, in cases of terminable interest, we may have to resort to the reversionary value of the land. There is lot of confusion amongst the valuers about validity and existence of this concept due to misconception of basic fundamentals. The reasons for this confusion is the Calcutta High
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There are basically four types of leases. Building Lease Occupational Lease Sub Lease Lease for life Building Lease: This type of leases are most common in which open plot of land is given on lease by lessor to the Lessee for the construction of the building. In these type of leases, rental income from building
Ground Rent: It is the rent charged by the landowner (Lessor) to the tenant (Lessee) for use of land under specified and mutually agreed on lease terms and conditions. The ground rent may be fixed for the entire period or maybe increasing at fixed intervals of years or may be reviewed at the time of
This rate of return is normally adopted when income is a terminable income. To recoup (Get back) the capital invested in such type of property (Income would cease after some years), this rate of interest is adopted. This rate is called rate of recoupment or rate of redemption of capital. It is also called “Accumulative
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1. Bamboo Bamboo is considered one of the best eco-friendly building materials. It has an incredibly high self-generation rate, with some being reported to have grown up to three feet within 24 hours. It continues spreading and growing without having to be replanted after harvest. Bamboo is a perennial grass and not wood and grows
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