written 6.2 years ago by | • modified 2.8 years ago |
A building is newly constructed with cost of Rs. 1cr over a plot of landing costing Rs. 70 lacs. Building consists of 20 flats of area 120m² each workout monthly standard rent/flat from the following data
Expected net return from land & building = 7%
Rate of interest on sinking fund = 9%
Life of building = 60 years
Salvage value = 10% of the cost of building
Repairs & maintenance cost = 7% of building cost
Taxes and other outgoings = 25% of gross rent.