The investor, before buying an apartment building, decided to estimate its cost. It is known that the areas of apartments are rented out, and at 90% of employment potential income per year is 170 000.

Euro. Annual additional income is on average 6000 

Euro. At the local market losses from unemployment are 7%, and management costs are 5% of the actual income. 

The manager receives 16,000 Euros per year. The owner has concluded a contract with an insurance company for five years, according to which he must pay 7500 Euro. Sanitary inspection requires payment of 70 Euros per month. Maintenance of the plot costs 950 Euro per year. Three garbage trucks are taken out per month. The cost of this one-time service is 30 Euro. Tenants under the terms of lease pay all utility costs. However, the owner pays the cost of lighting common areas per year at a rate of 4000 Euro. The annual depreciation charge is 32000 Euro. Annual repair work is 14000 Euro. Every three years additional cosmetic repairs are made, which amounts to 7300 Euro. In 25 years it is necessary to replace the roof cost 70 000 Euro.

Required: Determine the cost of an apartment building using three valuation methods. It is known that investors want to apply a 9% capitalization coefficient to the value of buildings and structures

Additionally:

Evaluation date - 2020.

The house was built in 1932. The area of 1960 m2. Renovated, allowed technical experts to assess its condition by 21 years better. district number 4. The price of construction is 1950 Euro/m2. Date of demolition - 2054 year.

There are three comparable objects.

• CO#1: Sales Price 125000 Euro; Area 1950 m2; district 1; Sold three months ago.
• CO#2: Sales Price 117000 Euro; Area 2100 m2; district 3; Sold four months ago
• CO#3: Sales Price 1050000 Euro; Area 1800 m2; district 4; Sold two months ago.

Every month real estate price was falling by 5000 Euros.

The number of the district reflects its location (a better district has a bigger number accordingly). Each district raises the selling price by 10000 Euro.

Formulate a conclusion regarding the sale price of the property.