Latimer, Iowa (north central) | What is the useful life of the asset after the 30 year period? What are your maintenance costs? What are your management costs? Is it wind or solar where the land is essentially worthless due to the clean up costs? Is it a rental warehouse, that if it is maintained it increase is value? On rental house, if the monthly rent is not 1% of the cost of purchase I will not touch them. If you are getting rent of 10,000 a year, 833 a month. if it is an asset with maintenance and management i would value it at 83,300 not 200,000. Appreciating assets, like land that is not developed for other purposes, is different of course. Need more info on asset class to give a better answer. |
figuring the value of an asset with a 3% inflation
