18 Methods of Valuation · 18.1 Methods of valuation
18.1.5 Land and building (contractor's or cost) method
The land and building (contractor's or cost) method values a property as land value + the present cost of replacing the building − depreciation (and obsolescence); it is the method for properties that are rarely sold or let, such as temples, schools, hospitals and public buildings.
- MPSC ATP
- Standard level
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Key terms
- contractor's method
- cost method
- land and building method
- depreciated replacement cost
- replacement cost
- reproduction cost
- plinth area rate
- cubical content
- services
- obsolescence
- special-purpose property
- temple
- school
- hospital
- insurance
- rating
- decapitalisation
- effective capital value
What this note covers
- Core factsFoundation
- ExplainedStandard
- DeeperAdvanced
- Mains writingMains writing
- Common trapsFoundation
- Quick revisionFoundation
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