The document provides information on various topics related to property valuation including:
1. It defines valuation as estimating the fair price or value of a property based on factors like location, maintenance, purpose of valuation, and more.
2. It describes different valuation methods for properties like the rental method, land and building method, and profit-based method. It also discusses valuation methods for open land like the comparative method and belting method.
3. It explains the concept of depreciation and how it is calculated using methods like the straight line method and sinking fund method.
In less than 3 sentences, the summary captures the key topics and methods discussed in the multi-page professional practice and valuation document.
Valuation - Estimation, Costing and Valuation EngineeringShanmugasundaram N
Definitions – Various types of valuations – Valuation methods - Necessity – Capitalised value – Depreciation – Escalation – Valuation of land – Buildings – Calculation of Standard rent – Mortgage – Lease
Detailed specification of an item of work specifies the quantities of materials, proportion of mortar, workmanship, method of preparation & execution and method of measurement.
Detailed specifications of different items of works are prepared separately and describe what the work should be and these shall be executed and constructed.
Types of Contract in Construction ManagementShahin MB
Types of Contract in Construction Management
Lump Sum Contract
Cost plus Fixed fee
Cost plus bid fee contract
Guaranteed Maximum
Negotiated
Unit price Contract
Design build
turn key contract
Valuation - professional prractice and valuationKavin Raval
VALUATION IS USED TO DECIDE THE VALUE OF A STRUCTURE OR A RENT OF A HOUSE OR OFFICE . THE TYPES OF RENT ARE DESCRIBED. THE METHOD OF FIXING RENT IS ILLUSTRATED.
Valuation - Estimation, Costing and Valuation EngineeringShanmugasundaram N
Definitions – Various types of valuations – Valuation methods - Necessity – Capitalised value – Depreciation – Escalation – Valuation of land – Buildings – Calculation of Standard rent – Mortgage – Lease
Detailed specification of an item of work specifies the quantities of materials, proportion of mortar, workmanship, method of preparation & execution and method of measurement.
Detailed specifications of different items of works are prepared separately and describe what the work should be and these shall be executed and constructed.
Types of Contract in Construction ManagementShahin MB
Types of Contract in Construction Management
Lump Sum Contract
Cost plus Fixed fee
Cost plus bid fee contract
Guaranteed Maximum
Negotiated
Unit price Contract
Design build
turn key contract
Valuation - professional prractice and valuationKavin Raval
VALUATION IS USED TO DECIDE THE VALUE OF A STRUCTURE OR A RENT OF A HOUSE OR OFFICE . THE TYPES OF RENT ARE DESCRIBED. THE METHOD OF FIXING RENT IS ILLUSTRATED.
Valuation is the technique of estimation or determining the fair price or value of property such as building, a factory, other engineering structures of various types, land etc.
By valuation the present value of a property is defined. The present value of property may be decided by its selling price, or income or rent it may fetch.
The value of property depends on its structure, life, maintenance, location, bank interest, etc.
Cost means original cost of construction of purchase.
.
Hierarchical Digital Twin of a Naval Power SystemKerry Sado
A hierarchical digital twin of a Naval DC power system has been developed and experimentally verified. Similar to other state-of-the-art digital twins, this technology creates a digital replica of the physical system executed in real-time or faster, which can modify hardware controls. However, its advantage stems from distributing computational efforts by utilizing a hierarchical structure composed of lower-level digital twin blocks and a higher-level system digital twin. Each digital twin block is associated with a physical subsystem of the hardware and communicates with a singular system digital twin, which creates a system-level response. By extracting information from each level of the hierarchy, power system controls of the hardware were reconfigured autonomously. This hierarchical digital twin development offers several advantages over other digital twins, particularly in the field of naval power systems. The hierarchical structure allows for greater computational efficiency and scalability while the ability to autonomously reconfigure hardware controls offers increased flexibility and responsiveness. The hierarchical decomposition and models utilized were well aligned with the physical twin, as indicated by the maximum deviations between the developed digital twin hierarchy and the hardware.
Industrial Training at Shahjalal Fertilizer Company Limited (SFCL)MdTanvirMahtab2
This presentation is about the working procedure of Shahjalal Fertilizer Company Limited (SFCL). A Govt. owned Company of Bangladesh Chemical Industries Corporation under Ministry of Industries.
NO1 Uk best vashikaran specialist in delhi vashikaran baba near me online vas...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
Hybrid optimization of pumped hydro system and solar- Engr. Abdul-Azeez.pdffxintegritypublishin
Advancements in technology unveil a myriad of electrical and electronic breakthroughs geared towards efficiently harnessing limited resources to meet human energy demands. The optimization of hybrid solar PV panels and pumped hydro energy supply systems plays a pivotal role in utilizing natural resources effectively. This initiative not only benefits humanity but also fosters environmental sustainability. The study investigated the design optimization of these hybrid systems, focusing on understanding solar radiation patterns, identifying geographical influences on solar radiation, formulating a mathematical model for system optimization, and determining the optimal configuration of PV panels and pumped hydro storage. Through a comparative analysis approach and eight weeks of data collection, the study addressed key research questions related to solar radiation patterns and optimal system design. The findings highlighted regions with heightened solar radiation levels, showcasing substantial potential for power generation and emphasizing the system's efficiency. Optimizing system design significantly boosted power generation, promoted renewable energy utilization, and enhanced energy storage capacity. The study underscored the benefits of optimizing hybrid solar PV panels and pumped hydro energy supply systems for sustainable energy usage. Optimizing the design of solar PV panels and pumped hydro energy supply systems as examined across diverse climatic conditions in a developing country, not only enhances power generation but also improves the integration of renewable energy sources and boosts energy storage capacities, particularly beneficial for less economically prosperous regions. Additionally, the study provides valuable insights for advancing energy research in economically viable areas. Recommendations included conducting site-specific assessments, utilizing advanced modeling tools, implementing regular maintenance protocols, and enhancing communication among system components.
Saudi Arabia stands as a titan in the global energy landscape, renowned for its abundant oil and gas resources. It's the largest exporter of petroleum and holds some of the world's most significant reserves. Let's delve into the top 10 oil and gas projects shaping Saudi Arabia's energy future in 2024.
Water scarcity is the lack of fresh water resources to meet the standard water demand. There are two type of water scarcity. One is physical. The other is economic water scarcity.
2. TOPIC NAME: VALUATION
SUBJECT CODE: 2I70610
BRANCH: CIVIL ENGG,. 7TH SEM
PREPARED BY:
GUIDED BY: Prof. Pritesh Rathod
Prof. Sunil Jaganiya
3. content
■ Terms
■ Objects/purpose of valuation
■ Property income
■ Depreciation and Obsolescence
■ Methods of calculating Depreciation
■ Different forms of value
■ Factor affecting value of property
■ Valuation Tables and their uses
■ Valuation methods for property
■ Types of rent
4. Terms
■ Cost – The term cost is used to indicate the actual amount incurred in
producing a commodity.
■ Prime Cost – The expenditures or charges represented directly in the
commodity produced are called the prime cost.
■ Supplementary cost – Other expenditures or charges like rent, management,
services, salaries, depreciation, etc. represented indirectly in the production of
the commodity are called the supplementary cost.
■ Value – Value means its worth or utility.
■ Price – The term price is used to indicate the cost of the commodity plus profit
of the manufacturer.
5. Valuation
■ Valuation is the art of estimating or determining the fair price or value of a property such as a
building, a factory, other engineering structures, land, etc.
■ The value of a property depends on :
I. Nature of structure
II. Life
III. Maintenance
IV. Location
V. Bank interest
VI. Legal control
VII. Supply and demand
VIII.Purpose of valuation
6. Estimation
■ Estimation for any construction work may be defined as the process of
calculating the quantities and cost of various items required in connection with
the work.
■ Purpose of estimation:
I. Preliminary study of the project
II. Administrative approval
III. To investigate feasibility
IV. To get loan from bank
V. For insurance purpose
VI. For deciding taxes
VII. To decide rent of a building
7. Objects/Purpose of Valuation
■ Buying or Selling property
■ Security of loans
■ Rent fixation
■ Insurance
■ Taxation
■ Compulsory acquisition
■ Betterment charges
■ Speculation
■ Court fees
■ Gift tax
■ Balance sheet
8. Property income
■ Gross income – The total income from different sources is called gross income.
■ Net income – When outgoings are deducted from gross income it is called net
income.
■ Outgoing – The term outgoing is used to indicate the expenses which are to be
incurred in connection with the property so as to maintain the revenue from it.
9. Depreciation and Obsolescence
Depreciation Obsolescence
Physical loss in the value of the property due to
wear, tear and decay etc. is known as
depreciation.
Loss in the value of the property due to change in
design, in fashion, in structures, etc. is known as
obsolescence.
The decrease in the value of the property is
gradual and slow.
The value of property increase or decrease at a
rapid rate.
Depreciation depends on its original condition,
quality of maintenance and mode of use.
Obsolescence depends on normal progress in the
arts, inadequacy to present or growing needs, etc.
This is variable according to the age of the
property. More the age, more will be amount for
depreciation.
This is not dependent on age of the building. A
new building may suffer in its usual rent due to
obsolescence.
There are different methods by which the amount
of depreciation can be calculated.
At present there is no method of calculation of
obsolescence.
10. Methods of calculating Depreciation
■ Straight line method
■ Constant percentage method
■ Sinking fund method
■ Quantity survey method
11. Straight line method
■ In this method it is assumed that the property loses its value by the same amount every year. A
fixed amount of the original cost is deducted every year so that at the end of the utility period
only the scrap value is left.
■ D =
C−S
n
D = Annual depreciation
C = original cost
S = scrap value
N = life in year
■ Depreciation of the property after m years
=
C − S
n
× m = m × D
■ Book value after m years
= C −
C − s
n
× m = C − m × D
12. Constant percentage method
■ In this method it is assumed that the property will lose its value by a constant
percentage of tis value at the beginning of every year.
p = 1 −
S
C
1
n
p = percentage rate of annual depreciation
S = scrap value
C = original cost
n = life of years
13. Sinking fund method
■ In this method the depreciation of the property is assumed to be equal to the
annual sinking fund plus the interest on the sinking fund for that year.
■ A= Annual sinking fund
■ b,c,d,…etc. = interest on the sinking fund for the subsequent years.
■ C= original cost
14. Life in years Annual sinking
fund
Interest in
sinking fund
Depreciation
for that year
Total
depreciation
Book value
1 A - A A C –A
2 A b A+b 2A+b C – (2A+b)
3 A c A+c 3A+b+c C – (3A+b+c)
4 A d A+d 4A+b+c+d C – (4A+b+c+d)
So on…
If i is the rate of interest, annual sinking fund installment to accumulate 1 Rs. In
n years.
p =
i
(1+i)n−1
If i is the rate of interest and 1 Rs. Is deposited every year total sinking fund
accumulated at the end of n years is
q =
(1+i)n−1
i
Rate of depreciation in n years
= (p×q)%
15. The cost of newly constructed building was Rs. 150000. the life of building is 75
years. Determine the depreciation in the 30th year of life by straight line method,
constant % method, and sinking fund method at the 8% compound interest. The
scarp value of building is 10% of its construction cost.
■ C = Rs 150000
■ S = 0.10×150000 = 15000 Rs.
■ N= 75 years i = 8%
(i) straight line method
D =
C−S
n
=
150000 −15000
75
= 1800 𝑅𝑠.
total depreciation after m = 30 years
= 18000×30 = 54000 Rs.
(ii) Constant percentage method
p = 𝐶
S
C
m
n
= 150000
15000
150000
30
75
= 150000 × 0.3981 = 59715 𝑅𝑠.
Total depreciation after 30 years
(C- S) = 150000 – 59715 = 90285 Rs.
16. ■ (iii) sinking fund method
(C – S) = 150000 – 15000 = 135000 Rs.
Sinking fund coefficient for 75 years life
p =
i
(1+i)n−1
=
0.08
(1+0.08)75−1
= 2.498 × 10−4
q =
(1+i)n−1
i
=
(1+0.08)30−1
0.08
= 113.28
Rate of depreciation for 30 years
p×q = 2.498 × 10−4 × 113.28 = 0.02829
Total depreciation in 30 years
(C – S)×0.02829 = 135000×0.02829 = 3819.15 Rs.
17. Different forms of value
1. Market value 9. Investment value
2. Book value 10. Sentimental value
3. Scrap value 11. Speculative value
4. Salvage value 12. Annual value
5. Accommodation value 13. Potential value
6. Distress value 14. Occupation value
7. Monopoly value 15. Present value
8. Replacement value
18. Factors affecting value of a property
■ Demand and supply
■ Maintenance
■ Rise in population
■ Abnormal condition
■ Cost of construction
■ Purpose of purchase
■ Town planning Act
■ Climatic condition
■ Life
■ Improvement by public schemes
■ Migration
■ Interest of schedule banks
19. Valuation tables and their uses
■ In order to save time and reduce the charges of error in elaborate and laborious mathematical
calculation the valuation tables are prepared so that by referring to them suitable coefficient can be
found out.
■ TABLE -1
■ To find the amount to which Rs. 1 will accumulate at the end of given number of years
Let, i = interest per annum on Rs. 1
Interest of Rs. 1 after 1 years = i
■ Amount receivable after 1 year = ( 1+i)
■ Amount receivable after 2 year = ( 1+ i) + (1 + i) i = 1+i + i +𝑖2= (1 + 𝑖)2 Rs.
■ For Rs. 1 amount receivable after n years.
= (1 + 𝑖) 𝑛 𝐶 = (1 + 𝑖) 𝑛
20. ■ TABLE -2
■ To find the present value of Rs. 1 receivable at the end of a given number of years.
p =
1
(1+i)n
■ TABLE -3
■ To find the amount of annual sinking fund for the redemption of Rs. 1 capital instalment of S.F.
p =
i
(1+i)n−1
■ TABLE – 4
■ If Rs. 1 is invested every year how much amount will be accumulated after n years
q =
(1+i)n−1
i
21. ■ Example: joinA and B properly
■ (1) On investment of Rs. 1/- amount receivable after 80 years @ 2%
= (1 + 𝑖) 𝑛 = (1 + 0.02)80 = 4.8754
(2) Present value of Rs. 1/- receivable after 70 years @ 3%
p =
1
(1+i)n =
1
(1+0.03)70 = 0.1263
(3) Amount receivable after 60 years @ 4% on investment of Rs. 1 every year
q =
(1+i)n−1
i
=
(1+0.04)60−1
0.04
= 237.9907
1 On investment of Rs. 1/- amount receivable after 80 years @ 2%
2 Present value of Rs. 1/- receivable after 70 years @ 3%
3 Amount receivable after 60 years @ 4% on investment of Rs. 1 every
year
4 Years purchase in 40 years @ 6%
5 Amount of sinking fund investment for redemption if Rs. 1 capital after
50 years @ 5%
22. ■ (4) Years purchase in 40 years @ 6%
S. F. =
i
(1+i)n−1
=
0.06
(1+0.06)40−1
= 0.00646
𝑌. 𝑃. =
1
𝑖+𝑆.𝐹.
=
1
0.06+0.00646
= 15.0463
(5) Amount of sinking fund investment for redemption if Rs. 1 capital after 50 years @ 5%
i
(1+i)n−1
=
0.05
(1+0.05)50−1
= 0.0048
1 4.8754
2 0.1263
3 237.99
4 15.0463
5 0.0048
23. Valuation methods for property and land
■ (A) Valuation methods for property
1. Rental method
2. Land and building based method
3. Profit based method
4. Development method
24. 1. Rental method
■ In this method the net rental income from a property is calculated after deducting
all outgoings from the gross rent and years purchase is calculated after adopting
the current bank interest.
■ The valuation of a property is worked out as under.
■ Capitalized value = Net income ×year’s purchase
C.V.= N.I. × Y.P.
Net income = Net rent = Gross Rent – outgoing
When the rent from a property is known this method is useful for valuation of a
property.
This present value of land can be obtained as
1
(1+i)n
Value of property = value of land + value of building
25. 2. Land and building based method
■ Properties which are used for special purpose outside the general range of
commercial and residential properties as for school police station or which
perform non- profitable community functions where there is no direct evidence
of income valuation of such properties are made by this method.
■ Valuation for under developed or owner occupied or vacant possession or
damaged properties may be done by this method of valuation.
■ Cost of new construction of building = total construction area×present rate of
construction
■ Calculate depreciated cost of building
■ Present value of property = cost of land + depreciated cost of building
26. 3. Profit based method
■ This method of valuation is very similar to the rental method of valuation and is
most applicable in case of valuation of shops, hotels, cinemas, etc.
■ In tis method net profit is worked out after deducting all usual outgoings
including interest of capital investment and also remuneration of labour
rendered by owner.
■ Capitalized value = Net income × year's purchase
C.V. = N.I. ×Y.P.
Net income = total income - outgoing
27. 4. Development method
■ Sometimes undeveloped or under developed property is bought
developed and then offered for sale. The valuation of such properties
would depend on initial investment development cost and expected profit.
■ This method of valuation is based on:
(a) Development of building estates
(b) Hypothetical building schemes
28. (a) Development of building estates
■ In this method an estate is developed with all the essential amenities and
sold out in small plots in most advantageous manner so that the estate is
worth more. When a city continues too expand then the land is known as
Ripe for building.
■ Valuation by development of building estates = present value – total
outgoings
29. (b) Hypothetical building schemes
■ In this method value of a vacant plot of land is estimated by capitalizing the
assumed rent that can be obtained from a building if erected on the land after
developing the same and then deducting the cost of development and building.
■ This is not a suitable method of valuation of land because the cost of land
depends on the magnitude of development of land.
30. B. Valuation method for open land
1. Comparative method
2. Hypothetical method
3. Belting method
31. 1. Comparative Method
■ In this method the various transactions of nearby lands are property studied and then a fair rate
of land under consideration is decided.
■ Thus this method will be useful only in case of an active market where there are large number of
statistics are available for comparison.
■ Following factors are to be taken into account while analyzing value of land by this method.
(I) Situation
(II) Size
(III) Shape
(IV) Frontage and depth
(V) Front road width
(VI) Vistas
(VII)Nature of soil
32. 2. Hypothetical Method
■ In this method value of a vacant plot of land is estimated by capitalizing the
assumed rent that can be obtained from a building.
■ If erected on the land after developing the same and then deducting the cost of
development and building.
■ This is not a suitable method of valuation of land because the cost of land
depends on the magnitude of development of land.
33. Valuation procedure
■ Permissible covered area = total area – (1/3) area of open space land
■ find, rental area = total area – 20 % for area of walls and wastes
■ Calculate net rent per month = gross rent – outgoing
■ Find outY.P.
■ Find out the cost of building from the total covered area and current
plinth area rent.
■ Workout the development cost of the land.
■ Find out the total cost of building and development cost.
■ Deduct the total cost of building and development cost.
34. 3. Belting Method
■ When a plot of big size is to be
valued or when a plot with less
frontage and more depth is to be
valued it is logical to adopt the
method of belting.
■ It is due to the principle that the
value of land in general deceases
as the plot increases.
■ In this method whole area is to
be divided into the number of
belts.
35. Example: figure shows the plot of land. If width of first belt is 30 m and its
value is estimated to Rs. 100/sq.m. find value of the entire plot by belting
methodV1,V2,V3 ae the values and B1,B2,B3 are width.
36. ■ Let us divide the plot in 6 parts
■ Width of first B1 =30 m
■ Width of second belt B2 = 1.5×30 = 45m
■ Width of third belt B3 = 125 -30 – 45 = 50m
■ BB1/30 = 40/125 BB1=9.6m
■ CC1/75= 40/125 CC1=24m
Plot no. Area Sq. m. Rate per Sq. m. Value of land Rs.
1 60×30 = 1800 V1 =100 180000
2 60×45 = 2700 V2 = 2/3×100=66.67 180009
3 60× 50 = 3000 V3 = 1/2×100 =50 150000
4 1/2×9.6×30=144 3/4×V1 =3/4×100 =75 10800
5 (9.6 + 24)×45/2 = 756 ¾ ×V2 = ¾ ×66.67 =50 37800
6 (24 + 40) ×50/2 = 1600 ¾ ×V3 = 3/4×50 = 37.5 60000
Total Rs. 618609
37. Types of Rent
■ Rent: Rent may be defined as an annual or periodic payment for the use of land or building
and land.
■ Various forms of rent are:
1. Standard rent 9. Contractual rent
2. Head rent 10. Nominal rent
3.Rack rent 11. Monopoly rent
4. Situation rent 12. Gross rent
5. Sitting rent 13. Net rent
6. Subsidized rent 14. Ground rent
7. Improved rent
8. Profit rent