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A building is newly constructed with cost of Rs. 1cr over a plot of land costing Rs. 70 lacs.
written 8.4 years ago by | • modified 2.8 years ago |
A building is newly constructed with cost of Rs. 1cr over a plot of land costing Rs. 70 lacs. Building consists of 20 flats of area $120m^2$ 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.
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