Dear friends Aoa,
If the price of a brand new house at a certain place is 3 crore (asking) what should be the price (asking) of a 30 years old well constructed house at same dimension plot in that same area. How does this depriciation rule work? Thanks
Ri replied on Tuesday, December 8, 2015 04:57 PM
Depend on condition, Approx 20 to 40 percent As compared to new house excluding land cost |
Sade replied on Tuesday, December 8, 2015 05:15 PM
Land cost increases but old construction will deprecate the price of construction but still it will give you profit in terms of construction cost today and construction cost 4 year back etc |
Jameel MughalŪ replied on Wednesday, December 9, 2015 03:06 AM
30 years old house should be almost at plot price, in many of these areas it is very difficult to judge plot price as a few are left.
The usual Rule Work Like this
New House Plot +100% Construction cost
3 to 5 years old Light use Plot + 75%
10 year use well maintained Plot Plus 60%
15 years use Plot Plus 40%
20 to 30 years Use still live able no renovation needed plot plus 25%
20 to 30 years use Livable with renovation needed Plot plus 10%
any house 20 to 30 years needs extensive renovation at Plot price
any old must must need demolishing few lacs less than plot price
My 2008 to 2010 experience seeing about 30+ Houses |
Ahmet replied on Thursday, December 10, 2015 03:38 AM
Depends on the construction quality and maintenance of the house. I have seen some houses in London which are 100+ years old but are more expensive than the new ones.
I am sure even in Pakistan people make houses which can last 50+ years especially when the weather conditions aren't even as harsh as in London.
But if someone has a poorly maintained house, its life expectancy shouldnt be more than what Mr. Jameel stated earlier. |
Wali replied on Friday, December 11, 2015 04:01 PM
@ Ahmet..
Bhai aap un gharon ki baat na karen... thats something extraordinary.. even wo symbol and part of cultural heritage ban jatay, unki value unki historical significance ki waja se hoti hai, just construction quality ki waja se nahi... common construction doesnt carry such mark or standard.. so he is obviously asking for ordinary constructed homes. |
