You have been asked to estimate the value of the subject property that has a gross rental income of $130,000 and an NOI of $58,000. A summary of transaction data on three comparable markets is in the table below.

Sp                            : 650,000       750,000      450,000

Gross rental income: 100 000      150,000      75,000

NOI.                         : 50 000        56,000       36,000

a. Based on two methods that are frequently used in the Income approach your task is to estimate the value of the subject property. Which method gives the highest value? (Ch 10)

2. b. The subject property has a rentable area of 1,500 Sqm, construction costs amount to $30/sqm. The estimated economic life of the building is 50 years. Economic depreciation in terms of negative changes in the neighborhood is estimated to be $1000 and based on the sales comparison approach the estimated value of the land amounts to 10,000. Current age of the building is 10 years. 

Based on the cost Approach your task is to estimate the value of the subject proper