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What value would you estimate Mr Zulu should pay

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Question - Mr Zulu wants to purchase an adjoining farm ('the subject farm') from his neighbour. The subject farm consists of 80ha of level cropland, 60ha rolling cropland, and 20ha of veld grazing. Sales of similar types of farms in the district indicate that level cropland is valued at R6 000/ha, rolling cropland is valued at R4 000/ha, and veld grazing at R1 500/ha. The buildings and fixed improvements on the subject farm have a replacement value of R400 000, but are considered to be about 40% depreciated. From an irrigation and aesthetic point of view, the contributory value of the water resources on the subject farm is an extra R65 000. What value would you estimate Mr Zulu should pay for the adjoining farm?

Reference no: EM132968167

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