Skip to main content

Work out the standard rent per month assuming the following outgoings.

Total cost of construction of a newly constructed building with three floors is Rs. 12,00,000,00. The building is constructed on a plot measuring 600 sq m purchased for Rs. 1,80,000.00 in 1979. The prevailing rate of plots in the locality is Rs. 450.00 per sq.m. Work out the standard rent per month assuming the following outgoings.

Work out the standard rent per month assuming the following outgoings.

 (i) Municipal taxes @ 35% of rate-able value, 
(ii) Collection and management charges @ 3% of the gross rent, 
(iii) Repairs at 1% in 9/10th cost of construction.
(iv) Sinking fund @ 5% for 65 years on 90% cost of construction 
(v) Miscellaneous expenses @ Rs. 600.00 per month. 

Solution:- Standard rent = Net rent +Outgoings 

(A) Net rent :- 

(i) Construction cost @ 6% =12,00,000.00 x 6 / 100 = 72,000.00 Rs.
(ii) Land value = 600 x 450 = Rs. 2,70,000.00 Total  = 3,42,000.00 Rs. 

(b) Outgoings :-  

(i) Repairs @ 1% in 9/10th cost of construction = (12,00,000 x 9 / 100) x (1/100) 
= 10,800.00 Rs.
(i) Sinking fund @ 5% for 65 years on 90% cost of construction = 0.0022 x 12, 00,000 x (9/10) = Rs. 2,376.00 
(i) Miscellaneous expenses per year = 600 x 12 = 7,200.00 Rs. 
Total = 3,42,000.00 + 20376.00 = 3,62,376.00 Rs. 

Municipal taxes @ 32% of the gross rent + 3% for collection and management charges, i.e., 35% on gross rent.

Suppose gross rent                                               = 100.00 Rs.
Old outgoings for municipal tax etc.                      = 35.00 Rs. 
Net rent                                                                 =  65.00 Rs.
Now if net rent is 65 than gross rent                     = 100 
Now if net rent is 65 than 3,62,376.00                  = 100 x 3,62,376.00 / 65 = 5,57,501.50 Rs. 
Gross rent = 5,57,501.50 Rs.
Standard rent per floor per month                         = 5,57,501.50 / (12 x 3)  = 15,486.10 Rs.  

Say                                                                        = 15,486.00 Rs. 

value is calculated by assuming a suitable rate of interest prevailing in the market. For example, consider a rate of interest as 5%, the Year's Purchase = 100/5 = 20 years. The net income multiplied by the year's purchase gives the capitalized value or the valuation of the property.

Comments

Popular posts from this blog

Medlum Density Fibre Board (MDF)

Medium Density Fibre Board (MDF)  MDF IS made from wood and other lignocellulose material refined into fibres and reconstituted with a resin binder. Row wood material is normally a single species wood. MDF has homogeneous structure with uniform density, texture and properties throughout, no identifiable grain can be seen at edge, end or face. There are no internal voids or pits and there is no variation in the surface hardness. Unlike plywood MDF doesn't delaminate. It has much higher strength than particle board. Since edges are totally smooth and uniform, costly tipping or beading with strips of wood required for plywood and particle board is not essential. It can be carved, grooved or embossed just like any timber. The surface of MDF is totally smooth and accepts all kinds of finishes - paints, varnishes and laminates. One such type of famous board in the market is 'Duratuff" . It comes in both interior and exterior grade. Duratuff prelaminated boards are also avail...

The loads Acting on staircase.

Distribution of  Loads  and its Effect on  Staircase Stair  slabs are usually designed to resist gravity  loads , comprising of dead  loads  and live  loads  as described below:  1) Dead  Load : The components of the dead  load  to be considered are: a) Self-weight of  stair  slab (tread/tread-riser slab/waist slab) b) Self-weight of ... LIVE LOADS:- IS 875 parts II specifies the load to be considered as UDL of intensity 5KN/m2 for public  buildings and 3kN/m2 for residential building where the specified floor do not exceed 2kN/m2 and the staircases are should not liable for overcrowding. DEAD LOADS:- Self-weight of stair slab which includes the waist slab, tread-rise,etc. Self-weight of finishes (0.5 to 1 kN/m?) Types of stairs                                                ...

CALCULATE QUANTITIES OF MATERIALS FOR CONCRETE

QUANTITIES OF MATERIALS FOR CONCRETE Quantities of materials for the production of required quantity of concrete of given mix proportions can be calculated by absolute volume method. This method is based on the principle that the volume of fully  compacted concrete is equal to the absolute volume of all the materials of concrete, i.e. cement, sand,  coarse aggregates and water. The formula for calculation of materials for required volume of concrete is given by:- Vc = (W / 1000) + (C / 1000Sc) + (Fa / 1000Sfa) + (Ca / 1000Sca) =  Where, V = Absolute volume of fully compacted fresh concrete W =Mass of water C = Mass of cement Fa = Mass of fine aggregates Ca = Mass of coarse aggregates Sc , Sfa and Sca are the specific gravities of cement, fine aggregates and coarse aggregates respectively. The air content has been ignored in this calculation. This method of calculation for quantities of materials for concrete takes into account the mix proportions from design mix or nom...