In Shanghai the different classes property may be graded in the following order of merit, that is from the point of view of security of arriving. at te. present in the capital value at the it begins to acer iply this by the figu in the tables for finding the. present value of a reversion tow perpetuity 1. Chinese shops and houses, A Forty-five Years Lease 3. Small foreign houses.
4. Large residences and offices 5. Godowns and factories.
6. Vacant land.
Chinese shops and houses are the mont secure investment afforded by property on account of the very Jarge demand and small outgoings, moreover lostes through vacancies are at a minimum, Godowns ant factories on the ther hand are not so secure a form a Tease has: more wars to run, the date so remote that the extra value attached to it must be neglected.
advising a vendor or purchaser, it ie important to note that although the value of the property ix based primarily upon the net income received, there ure cases would be an entirely of investment. A factory requires a large expenditure to adapt it to the trade carried on and should this Sail difficulty will be experienced in finding another tenant, Large residential houses repre sent an uncertain form of inv ment. Outgoings are heavy, fancies entry a high percentage ows, and letting is difficult, Gri care ix necessary in valuing this Class of property, an exi rental may not be m:
immediate reduction in income obvious that th: present income would not be the correct basis for arriving at the value, and in thi case a re. development scheme must be devise cost estimated. The property will then be valued upon' the estimated new rentals and the cost lof re-development deducted. Further when the life of the bul likely to be of short dura existing rentals should not be the basis for valuing. eluation Tables Deductions to be Made For the purpose of valuing a proerly itis necessary to ascertain ix accurately ax possible the net ental obtained. from. it, and. the following are the rinepal dedoewhich must be made from the trash nnwaal sania Repaien, The most important published valuation tables are:—
1, Present value of £1 per annum for year's purchase.
2 Prevent value of 'a reversi a perpetuity or £1 per annum deferred a certain number of years, Certain lots' to which special expiry of a given number of Land tax, 'E. Sinking fund, 5. Water and lighting in certain Chinese Government Land Tax. Management.
4. The amount to which £1 per annum invested will accumulate at compound intos The amount to which £1 invested now will uecumulate at com-
Roma Sin fun Most properties in Shanghai are tw ull intents and purposes freehold, und valuation isa more ur less Mtruightforward matter. One may, however, be called pon to value operticn ved by leases of various uration aod which usually eon tite "a detriment at all events Jocally because' they preven: any inerense in rent, driving the term of the lease, The ality ofthe valuer consist renee ct" Lo carry cobia Sloot tes ation" he tha eeecics cos ce atest cane ces eccratyColeaisd by. tne Tu Shanghat " vival rate of me ake ce anes er tar teat poe Boy ttn sts pis ces foctcing "the" soundvese of the
Text read from the printed page and cleaned; old type leaves the occasional error.