This document discusses the topic of property valuation. It defines valuation as the technique used to determine the fair price of a property for purposes such as sale, purchase, taxation, or rental. The main purposes of valuation are sale/purchase of a property, determining municipal taxes, wealth tax, estate duty, gift tax, and probate. Valuation of a building depends on factors like its type, structure/durability, location, size, materials, and current construction costs. Common valuation methods mentioned are direct comparison, income/profit-based, cost-based, development method, and depreciation method.
This document discusses the topic of property valuation. It defines valuation as the technique used to determine the fair price of a property for purposes such as sale, purchase, taxation, or rental. The main purposes of valuation are sale/purchase of a property, determining municipal taxes, wealth tax, estate duty, gift tax, and probate. Valuation of a building depends on factors like its type, structure/durability, location, size, materials, and current construction costs. Common valuation methods mentioned are direct comparison, income/profit-based, cost-based, development method, and depreciation method.
This document discusses the topic of property valuation. It defines valuation as the technique used to determine the fair price of a property for purposes such as sale, purchase, taxation, or rental. The main purposes of valuation are sale/purchase of a property, determining municipal taxes, wealth tax, estate duty, gift tax, and probate. Valuation of a building depends on factors like its type, structure/durability, location, size, materials, and current construction costs. Common valuation methods mentioned are direct comparison, income/profit-based, cost-based, development method, and depreciation method.
G.H.RAISONI COLLEGE OF ENGINEERING & MANAGEMENT , WAGHOLI (PUNE).
(An Autonomous Institute Affiliated to Savitribai Phule Pune University)
TOPIC :-VALUATION TAE :- 5 Valuationis the technique of determination of Terminology Valuation of Building: fair price of a property such as land, Incomes: Valuation of a building depends on the type of the building, factory or other structures. Valuation a) Gross income: Total income from all building, its structure and durability, on the situation, determines present value of the property sources. size, shape, frontage, width of roadways, the quality of for sale or renting purpose. b) Outgoings: these are the expenses which materials used in the construction and present day Purpose of the Valuation are required to be incurred to maintain the prices of materials. property. These includes: Taxes, periodic Method of Valuation The main purposes of valuation are as follows: repairs, management and collection charges, 1.Direct Comparisons of the capital value •Sale or Purchase of a property sinking fund, and loss of rent (for the period 2.Valuation based on the profit •To fix up the municipal taxes, wealth tax and when the property is not occupied). 3.Valuation based on the cost estate duty on a property c) Net income: The amount left after 4.Development method of Valuation •To fix up the gift tax payable to the govtwhen deducting all outgoings from the gross 5.Depreciation method of Valuation the property is gifted to somebody else. income. •To probate, i.e. to prove before a court that the d) Net income = gross income-outgoings. Factors Affecting Value of a Building written paper purporting to be the will of a e) Perpetual income: It is the income 1.Type of the building person who has died is indeed his lawful act the receivable for indefinite period of time. 2.Location official copy of a will is to be presented along f) Deferred Income: it is the income 3.Building structure and durability with court stamp fees. The stamp fee depends receivable after a lapse of certain period. 4.The quality of materials used in the construction on the value of a property and for this valuation 5.Size of the building is necessary. •To divide the property among the shareholders in case of the partition. SUBMITTED BY:- •Assessment of income or stamp duty. Kaustubh Prabhu-B145