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  • Profile photo of manofactionmanofaction
    Member
    @manofaction
    Join Date: 2003
    Post Count: 80

    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

    Profile photo of JLJL
    Member
    @jl
    Join Date: 2007
    Post Count: 110

    John,
    Your local council values your land for rates.  Ask them?
    JL

    Profile photo of BattleshipsBattleships
    Participant
    @battleships
    Join Date: 2003
    Post Count: 63

    Hi 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
    Alan

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    John, 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.

Viewing 4 posts - 1 through 4 (of 4 total)

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