Rent and Building Value

Mohammed Ibrahim , Last updated: 10 July 2013  
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If a property produces a net income of INR 3,00,000 per annum and a purchaser desires 5 percent return on his capital, he will pay INR3,00,000 x 100/5= 60,00,000/- maximum for that property.100/5= 20 is a multiplier. The multiplier of the net rent to obtain Capital value is known as Years purchas

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Published by

Mohammed Ibrahim
(Registered WT Valuer - Arbitrator - Architect.)
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