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This time, it was distributed on CONSPIRIT's official channel on YOUTUBE.
Episode 18: Boost your quality of life with real estate management!I would like to send you the contents.

The topic for this episode of the Conspi Channel is the most basic of real estate valuation.
I would like to talk about the "integration method."

Three main methods for calculating real estate prices

This diagram also appeared in our previous article on real estate valuation methods, Part 1: Income capitalization method.

The cost estimation method, along with the income capitalization method, is one of the two top real estate appraisal methods.
Setting the case law aside for the moment...

However, when it is called the accumulation method, it actually refers to the "method of calculating rent."
Originally, when "accumulation" is used in relation to buying and selling, it refers to the "accumulated price."
Please note that what is meant here may differ depending on the nuance of the person using it.

So, this time we will be talking about the estimates used to determine the "purchase price of real estate."

Simply put, the calculation is
The current value of the land and building are assessed and added together.
While revenue capitalization is based on rental income, accumulation does not take income into account.

In short,
Since it is close to the "net value" of the land and building, financial institutions use it when reviewing loans.
It is used to determine the value of collateral.

Now, here is the specific calculation formula.

Estimated price = current price of land + current price of building + adjustment amount

It's a simple formula like this.

Now let's take a look at how to calculate the price of land and building.

 

How to calculate the price of land and building

①Land

This is often done using publicly-published land valuations.

What is public land valuation?

・"Roadside land prices" announced by the National Tax Agency
・"Official Land Prices" announced by the Ministry of Land, Infrastructure, Transport and Tourism
・"Standard land prices" announced by prefectures

It is commonly used to refer to the following.

The land price is shown per square meter, so

Road price x land area

The accumulated price of land can be calculated using this formula, which can be easily calculated.

However, adjustments would normally be made based on the shape of the land, but I will talk about that on another occasion.

②Building

Replacement cost x total floor area x (remaining useful life ÷ useful life)

It is calculated by the following formula.
These are some unfamiliar words, but let's break them down and take a look.

First of all, "replacement cost" refers to how much it would cost to build the same building anew.
The unit price and useful life are determined in advance depending on the structure of the building.

The construction cost for a new building is as follows:

・Reinforced concrete structure (RC structure): 200,000 yen/m2
・Heavyweight steel frame construction (S construction): 180,000 yen/m2
・Wooden structure: 150,000 yen/㎡
・Lightweight steel frame construction: 150,000 yen/m2

Multiply this unit price by the total floor area to determine the replacement cost.

Below is the service life for each structure:

・Reinforced concrete construction (RC construction): 47 years
・Heavy steel construction (S construction): 34 years
・Wooden structure: 22 years

 

Example of calculation of estimated price

Now, let me show you a simple example of calculation.

Land: 80㎡, road value 200,000 yen/㎡
Building: Wooden structure, 7 years old, total floor area 120㎡

The estimated price for this property is as follows:

The land price is 200,000 yen/m2 x 80m2 = 16 million yen

The building is150,000 yen/m² x 120m² x (15 years ÷ 22 years)It is expressed by the formula:
The estimated price of the building is12.24 million yenIt becomes.

Therefore,Land 16 million yen + building 12.24 million yen = 28.24 million yen,

This is the estimated price of this property.

Once you remember it, it's not a difficult calculation, right?

 

Summary of integration method

When financial institutions evaluate loans,Up to 80% of the total, so it is set in the form,
Once you know the estimated price, you will also be able to get an idea of the loan amount.

If you are considering purchasing income-generating real estate,
“Profit return method”I would like you to remember these as a set.

 

Learn about real estate management

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