A bldg. is newly constructed with cost of rs 80 lakhs over a plot of land costing rs. 50 lakhs. Bldg consists of 10 flats of area 120m² each workout monthly standard rent/flat from following data:

1. Expected net return from land & building =6%
2. Rate of interest on sinking fund= 7%
3. Life of building =55 years
4. Repairs & maintenance cost = 7% of building cost
5. Taxes & other outgoings = 25% of gross rent

Mumbai University > Civil Engineering > Sem 7 > Quantity Survey, Estimation and Valuation

Marks: 10 Marks

Year: Dec 2015

Building cost 80,00,000

Land cost 50,00,000

Total 1,30,00,000

1. Net return $= \dfrac{6}{100} * 1,30,00,000 \\ = 780000$

2. Sinking fund = Ic $=\dfrac{i}{(1+i)^n-1} \\ = \dfrac{0.07}{(1+0.07)^{55}-1} \\ = 1.73*10^{-3}$

3. Sinking fund installment $= \text{Ic*(cost-scrap)} \\ = 1.73*10^{-3} *( 80,00,000-0.1*80,00,000) \\ = 12456$

4. Repair & maintenance cost $= \dfrac{7}{100} * 80,00,000 \\ = 560000$

5. Gross rent $\text{= net rent + sinking fund + Annual maintenance & outgoing} \\ X = 78000 + 12456 + 560000 + 0.25x \\ X = 1803275$

6. Gross rent/month $= 1803275/12 \\ = 150273$

7. Gross rent/month/flat $= 150273/10 \\ = 150273$