PECULIARITIES OF CALCULATION OF THE PRICE OF A LAND PLOT FOR CONSTRUCTION AND MAINTENANCE OF A RESIDENTIAL BUILDING

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Visnyk LNAU: Architecture and Farm Building 2019 №20: 103-110

PECULIARITIES OF CALCULATION OF THE PRICE OF A LAND PLOT FOR CONSTRUCTION AND MAINTENANCE OF A RESIDENTIAL BUILDING

S. Malakhova, PhD
Lviv National Agrarian University

https://doi.org/10.31734/architecture2019.20.103

Annotation

The main national wealth of Ukraine is the land under special state protection. The current practice of land taxation is unsatisfactory, first of all, due to the low rate of land tax revenue at the local level. Moreover, the modern legislation suggests a large number of transactions to be conducted concerning land and real estate, and very often, it is necessary to know its market (fair) price, which serves as a base for valuation of the land to decide on the purchase or sale of it. Therefore, it argues expediency and profitability of the transaction. The accuracy of land value determination is a critical element of an effective tax system. Objective land valuation ensures that land use decisions are correct not only in the public but also in the private sector. The determination of the market price of land is possible in the case of expert monetary valuation of land.

Considering the rapid development of the land relations market, the demand for a quality land valuation is growing. Independent monetary valuation of land plots is a highly sought-after procedure in the modern society. It is an important piece of information about the land evaluation, without which it is impossible to manipulate land, especially when each party wants to make an economically beneficial solution.

The market price of a land plot is based on the principle of the best and most efficient use of it, which is, among others, reasonable, possible and legally authorized alternatives of its use, and is physically possible, adequately secured, financially viable and leads to the highest value of the land. Therefore, determination of the best and most efficient use of land is a necessary and mandatory step in determining of its market price.

Key words

land, land value, expert monetary estimation, market price, methodical approaches, income, market, cost

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