Real estate investment is a popular decision amongst many Australians for several reasons including, but not limited to:
- Its relatively low volatility in comparison to shares and other investment options,
- Its potential to generate consistent rental income,
- The capital gains benefits when selling a property at a higher value, and
- The opportunity to claim tax deductions by offsetting property expenses against rental income.
However, to maximise the potential of your property investments, whether you own a single investment property or a diverse portfolio, obtaining a property valuation can offer significant advantages.
The Benefits of Property Valuation
- Ascertaining Your Property’s Current Market Value:
The primary purpose of a property valuation is to calculate the property’s value based on current property market evidence and variables.
A precise market value estimate is crucial for determining key financial figures including ‘rental yield’ and ‘capital gains tax.’
Additionally, when applying for loans or mortgages, having an accurate appraisal may help you unlock broader financing options from banks and other lenders.
- Evaluating Your Potential Investment:
It is important for all prospective investors to conduct thorough due diligence before finalizing their property purchases.
Pre-purchase valuations can provide property investors with essential information including insights into current market trends, comparable property data and upcoming local infrastructure developments, thus helping them to make more informed investment decisions.
- Expertly Planning Developments:
For investors planning to subdivide or develop property or land, customizable property valuation reports can be generated.
These can assess the property’s present value or project its future value, depending on the intended development proposal/s.
Subsequently, these reports can inform critical budgeting considerations and effectively evaluate the feasibility of proposed projects.
- Ensuring Greater Legal Protection:
A legally certified valuation report can serve as an important document across a range of property-related legal matters, such as settling an estate, resolving a property dispute, or calculating property taxes.
How Can You Get Your Property Valued?
Though various ‘online tools’ and ‘service providers’ can offer property appraisals, they may not provide legally certified reports, limiting their applicability in tax disputes or legal proceedings.
Consequently, to ensure greater accuracy, transparency and impartiality, a Certified Practising Valuer (CPV) accredited by the Australian Property Institute (API) should instead be consulted.
Our firm works closely with a broad network of CPVs and can help you obtain an accurate, legally certified property valuation.
If you or someone you know wish to discuss this issue further, or seek legal advice over your property matter, please do not hesitate to contact us on 02 8999 9809.