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What is land Valuation here in Nepal?

 What is Valuation?

Valuation is the analytical process of determining the current (or projected) 
worth of an asset or a company.The term "valuation" refers to the process, 
rather than just the final result. There are many techniques used for doing 
a valuation, including those that require more subjective analysis, such as 
discounted cash flow modeling or independent appraisals. An analyst placing 
a value on a company looks at management's ability to manage, capital structure
 (i.e., reliance on debt and equity), prospects for future earnings and/or operating
 performance, and market value as an indicator of how much it will cost a prospective
 buyer (seller) to purchase all or part of what is being valued, among other metrics.

 

What is the valuation of land?


Land value is the value of a piece of property including both the value of the land
 itself as well as any improvements that have been made to it. Land value increases 
when demand for land exceeds the supply of available land or if there are compelling 
reasons to buy specific property, such as a tax break. If a developer is thinking 
about investing in real estate, it should always consider how much revenue could 
be generated over time by building projects on that land.

Types of land valuation


Government valuation

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Land valuation is determined by Government sector in Nepal scenario Valation of
 land is determined by Land Misnistry ( नेपाल सरकार भूमि व्यवस्था,सहकारी तथा गरिबी निवारण मन्त्रालय)  .
 Every year the valuation is update with the change at the end of fiscal year
 which is done on the month od Ashar(June -July).Yearly the price is increased
 from 0.6% which is fond on survery report from 2069 B.S till 2080 79 B.S. 
New Goverment land valuation is now update of 2079/80 B.S.You can also find
 it on https:// www.dolma.gov.np/office/dept/content/fiscal-year-2079-080-1659243606


                                                                            
Banking valuation 

Nepal Rastra Bank Prepares to Bring International Payment in Nepal
A bank valuation is an important part of the mortgage process. If you’re 
buying a property and taking out a home loan,you need to know that bank 
valuations are different to market valuations and sale prices. This affects
the LVR, which can affect how much you can borrow. A higher LVR means more 
of your home’s value is borrowed, so this might mean you must take out lender’s
 mortgage insurance – or find another way around it in some cases. A bank 
valuation is a measure of the property's value, for your bank. The valuation
 considers a number of factors, including the condition of the property and
 comparable prices in the suburb. The bank uses the appraisal to determine
 the risk it takes in lending you money. If that worth is lower than what 
you think you can get for your property, then it may be time to look at other options
 for funding a renovation or purchase.

Market valuation

Valuation Basics: Understanding the Market Approach
Market value is the value of your property when placed at sale on the open market. 
It's determined by buyers and defined as the amount they are willing to pay for
purchasing the home. The price of your home may be more for one reason or another 
based on many factors, including location, square footage, style and other important
elements that affect its price.

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