Calculation of PSF base on Built-in/Land Area
We are starting to consider buying our first lander property and one topic that kept coming up is the calculation of psf.
Base on our initial conversation with a couple of mortgage specialist, they seem to calculate psf base on the land area and were very vague as to how the built-in area contributes to the value of the property.
However, most agents and home owners will happily use the built in or land area whichever is greater.
So as an example, a terrace with built-in 3000 and land area 2000 going for say $2M, it seems the banks will value the prop as $1000psf while the agents will say its $666psf.
Can anyone shed some light how we should go about calculating psf? How does URA and the government calculate psf?