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Questions and Answers
What is considered the depth of the second belt relative to the first belt?
What is considered the depth of the second belt relative to the first belt?
- 1.5 times the depth of the first belt (correct)
- 1.0 times the depth of the first belt
- 2.0 times the depth of the first belt
- 2.5 times the depth of the first belt
How is the rate of the market value for the first belt determined?
How is the rate of the market value for the first belt determined?
- By estimating the development potential of the land
- By calculating the total area of the properties
- By comparison with similar properties sold recently (correct)
- By averaging the rates of the last three sales
What rate is typically applied to belt-II compared to belt-I?
What rate is typically applied to belt-II compared to belt-I?
- 1/2 of the rate of belt-I
- 2/3 of the rate of belt-I (correct)
- 1.5 times the rate of belt-I
- Equal to the rate of belt-I
What is the ratio of the market value applied to belt-III compared to belt-I?
What is the ratio of the market value applied to belt-III compared to belt-I?
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What percentage reduction is given in ASR for subsequent belts?
What percentage reduction is given in ASR for subsequent belts?
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How deep is the front road value considered in ASR?
How deep is the front road value considered in ASR?
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What is the calculated depth of the remaining land/property considered in the third belt?
What is the calculated depth of the remaining land/property considered in the third belt?
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Study Notes
Belting Method in Property Valuation
- The second belt's depth is estimated to be 1.5 times that of the first belt, although this is an ad hoc assumption.
- Any remaining land, not classified under the first or second belts, is categorized as part of the third belt, potentially measuring 2.25 times the first belt's depth.
Market Value Estimation
- Market value for land in the first belt is determined through comparison with recently sold similar properties in the locality.
Rate Application Between Belts
- The rate for the first belt serves as the basis for subsequent belts:
- Rate for the second belt is approximately two-thirds (2/3) of the first belt's rate.
- Rate for the third belt is about half (1/2) of the first belt's rate.
Adjustments in Annual Statement of Rates (ASR)
- A reduction of 30% is applied for subsequent belts in the ASR.
- Up to 100 meters in depth, the value of the front road is factored into property valuation.
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