Hi guys,
Assuming one doesn't know the actual construction costs of an established property, has anybody got a really simple way to calculate or estimate the land value component?
As an example, an established house, 20squares, built 1987 on a 650m sq block.
This isn't for depreciation etc, just for general calcs.
Thanks
JB
John,
Your local council values your land for rates. Ask them?
JLHi John
The first and most obvious way is to find a similar (in size and location) block of land without a house on it. I suggest realestate.com.au but remember the asking price is likely to be higher than the eventual sale price.
If you have access to better data eg http://www.pdslive.com.au you can get a good idea by comparing properties. Mathematically a multivariate approach can be taken but really with a bit of common sense and data for a few houses that are roughly comparable you can usually get a good idea of the land value.
Cheers
AlanJohn, keep your copies of the sunday herald (sydney) property section – generally lists all of the last week's traded houses/units incl sales price & size. Keep as many as possible, whenever possible, get back issues if you need. Or pay for a one off from one of the suppliers of the information.
Then it is dogwork – find a few in the area of interest (0.5-1km radius), do a drive by, note condition, size of block & house (roughly), better/worse location, aspect, gardens/landscaping, garaging/sheds etc.
Then compare quality of the house (age, build quality -prestige/basic, size (no bdrms), standard of maintenance. Depreciate each property from its 'new cost' to its current state & deduct that from the sales price.
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