All Topics / Help Needed! / Land value psm calculations

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  • Profile photo of SPAMSPAM
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    @spam
    Join Date: 2004
    Post Count: 7
    May 31, 2004 - 12:22 pm


    Hello all.
    I have a silly question to ask,I cant seem to be able to find the answers to it. My question is,When checking through the Homes for sale section of a local paper i have often wondered what the value of land component is on a particular house that is for sale. I have tried looking for land (similar sizes)for sale in same area and dividing the $$$ asked x sqm size of the block. But the figures were always way off and none were calculating close to a figure that i can use as a average for the area.

    Can anyone help with the correct method to find out how much land is worth by the meter when adding to block sizes.

    Regards JON.[blink]

    Profile photo of DerekDerek
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    @derek
    Join Date: 2004
    Post Count: 3,544
    May 31, 2004 - 12:45 pm

    Hi Spam AKA Jon,

    You can contact the local council – they should be able to give you a rateable value of the land. This figure is determined by the Valuer General’s Office (or equivalent in your state) and is generally considered to the unimproved value of the land.

    Bear in mind in some states these figures are only reviewed on a triennial basis and can be somewhat ‘out’ in a fast moving market as experienced in recent years.

    Derek
    [email protected]

    Property Investment Support Available. Ongoing and never stopping. PM welcome.

    Profile photo of SPAMSPAM
    Member
    @spam
    Join Date: 2004
    Post Count: 7
    May 31, 2004 - 1:45 pm

    THANKS DEREK,

    Now there is where i think im getting confused, there is a formula that you apply to a rate set by council then you apply the formula And all is calculated to an actual today cost per meter for for the size calculated. Now anyone got that formula to do this ? Im going on what i heard a mate tell me here, so are we both wrong?

    All info appreciated.

    Thanks,
    Jon.

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544
    May 31, 2004 - 11:04 pm

    Hi Jon,

    The Councils will be able to give you the rates figure and also (which is what you are after) the unimproved value of the land.

    Once you have the unimproved value of the land then you can apply a unimproved value/land area = $ sm formula. Eg $50K / 775 sqm = $64.50sqm

    Do this with a couple of blocks and you will have a ball park figure for the area in question.

    Derek
    [email protected]

    Property Investment Support Available. Ongoing and never stopping. PM welcome.

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