How is the price of real estate
Many people take a position and express their opinion about the price of real estate usually mislead the audience that the price is high because of the great profit of the investor. However, they all speak to the value of the building, not the price of real estate, which is the sum of many components.
When determining the price of a property, unless the value of the building should take into account all components, including the creation of the project , the construction of the building and putting it into operation, and they are as follows: This is the price at which purchased the land (ground) on which will be built building. Important here is the fact that the land is in regulation or No. When you build on land (terrain) with right of construction for compensation to the owners , then you must include the value of that benefit .
Next comes the value (remuneration) for the development, design and approval by the respective municipality.
Required rent and for construction supervision.
Shall pay to the municipality issuing the building permit.
Furthermore, in almost all cases of new construction adjacent municipality not built infrastructure, forcing investors to build their own expense and gave it to her.
In most cases, the investor builds and street networks for water and sewerage, electricity supply and even the street itself.
Investor pays and small fees for research, opinions and conclusion of the final contracts with distribution companies, Sofia water supply, gas supply, etc. In many cases, he was forced to build its own expense the links and facilities pay for them in the hopes that they will recover these costs. If that happens, it is always almost half the input . The reason for this is that they own methods and freight rates determine the investments made.
After considering the listed above, next down the cost coming location, quality of materials and quality of performance .
Summing all these costs , and there are additional ones, we get the value of the property and then now comes the profit of the investor. Usually it is not as it is presented to include only the cost of construction, and not take into account the above components that influence and determine the final price of the property.
Finally comes the market already, which regulates and determines the price.
Nikolay Mitrev lawyer