NEWS & BLOGS EXCLUCIVELY FOR INFORMATION TO ENGINEERS & VALUERS COMMUNITY
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
HYPOTHETICAL BUILDING SCHEME (OWNERSHIP CONCEPT) Read More »
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
REVERSIONARY VALUE Read More »
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
RATE OF REDEMPTION OF CAPITAL Read More »
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
GREEN BUILDING CONSTRUCTION MATERIALS Read More »
1. Free Hold Property: A freehold property is one, where the owner/society/residents’ welfare association owns the building and the land that it stands on outright, in perpetuity. Freehold land is generally bought through an auction or lottery. The completed project, thus, will include the cost of the land incorporated in the final cost of the
FREEHOLD AND LEASEHOLD PROPERTY Read More »
Capitalization: Capitalization is any method used to convert an income stream into value. There are two primary income capitalization methods: direct capitalization and yield capitalization. (A capitalization rate is any rate used to convert an estimate of future income into an estimate of market value. Direct Capitalization is a method used to convert an estimate
MEANING OF CAPITALIZATION Read More »
It is possible for someone who has no prior real estate experience to get carried away by the lure of profits and invest in real estate which offers no returns. Real estate investment comes with certain risks and a beginner should keep the following points in mind before spending his/her hard-earned money. Stay Patient –
POINTS TO CONSIDER BEFORE INVESTING IN REAL ESTATE Read More »
An important effect of the Rent Act was that the value of all tenanted properties fell in the market substantially and it remained at an artificially low level for a very long period of 40 to 50 years. Persons desiring to invest funds in sound securities with fair return stopped building houses for rental income
VALUATION OF PROPERTY AFFECTED BY THE RENT CONTROL ACT Read More »
DIFFERENCE BETWEEN MARKET VALUE AND FAIR MARKET VALUE Fair value is the most used term for valuing an asset. Fair value can be best defined as the value by which an asset changes hands between two parties. It is more likely traced with the fair value of a share price. On the other hand, the
BASIC DIFFERENCE OF MARKET VALUE AND FAIR MARKET VALUE Read More »