TAX & BUSINESS VALUES – FINANCIAL CONCEPTS

How to evaluate a property?

There are two types of evaluation:

• The administrative evaluation, by the amount of the property tax, used to calculate the annual taxes for the house.
• The commercial evaluation which takes into account other factors, such as market trends, the location of the property, prospects of future performance, originality and comfort of the house and finally the “heart beat” of the delighted buyer.

The commercial evaluation always is much higher than the fiscal administrative evaluation, but there is ALWAYS A CLOSE RELATONSHIP OF TIME between both evaluations.

TAX CHANGES IN PROPERTY VALUE:

The fiscal value of 2011 has been done by the official fiscal expert, this report is shown here:

This table shows the very significant investments made between 2007 and 2011.

The fiscal value has multiplied by 3.50.

COMMERCIAL VALUE:

In April 2007, one of the most famous and most professional agencies with an excellent reputation for reliability in their businesses, has estimated the property at $490,000.00USD and announced it with this price (see next page).

Applying the multiplier of the property tax of 3.50, the market value of the house is $1,715,720USD.

This price is logical and corresponds exactly to the evolution of prices per square meter of built land, in the last 4 years.

For your information, we also attach the water bill (473 pesos) from January 2011 to December 2011.