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:

Expected net return from land & building =6%

Rate of interest on sinking fund= 7%

Life of building =55 years

Repairs & maintenance cost = 7% of building cost

Taxes & other outgoings = 25% of gross rent

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

Marks: 10M

Building cost 80,00,000

Land cost 50,00,000

Total 1,30,00,000

Net return $= \frac{6}{100} ×1,30,00,000 \\ = 780000$

Sinking fund =

$Ic =\frac{i}{(1+i)^n-1} \\ = \frac{0.07}{(1+0.07)^{55}-1} \\ = 1.73×10^{-3}$

Sinking fund instalment = Ic×(cost-scrap)

$= 1.73×10^{-3}×( 80,00,000-0.1×80,00,000) \\ = 12456$

Repair & maintenance cost

$= \frac{7}{100}×80,00,000 \\ = 560000$

Gross rent = net rent + sinking fund + Annual maintenance & outgoing

X = 78000 + 12456 + 560000 + 0.25x

X = 1803275

Gross rent/month $= \frac{1803275}{12} = 150273$

Gross rent/month/flat $= \frac{150273}{10} \\ = 150273$