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04000CE409092001

PART C
Answer any two full questions, each carries 15 marks.

Discuss about freehold and lease hold property.

In a plot of land costing Rs. 50,000 a building has been newly constructed at a total

cost of Rs.120,000 including sanitary and water supply works , electrical installation,

etc. The building consists of four flats for four tenants. The owner expects 7% return

on the cost of construction and 5% return on the cost of the land. Calculate the

standard rent for each flat of the building assuming;

1. The life of the building as 60 years and the sinking fund will be created on 4%
interest basis.

2. Annual repairs cost at 1% cost of the construction

3. Other outgoings including taxes at 30% of the net return on the building.

Explain about annuity and depreciation.

Explain in detail the method of fixation of standard rent of a building.
Write short note on sinking fund method and years of purchase.

What are outgoings? What are the various types of outgoings?

RK

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