Midyear state of affairs: A closer look at the country’s markets
With market conditions changing at varying degrees across the country, seven experts from Property Investment Profession...
A professional assessment of your property every few years can be a worthwhile investment.
Whether it’s your investment property or the family home, keeping tabs on its value can be a smart move – and there’s a number of very good reasons why.
Knowledge is power Through understanding the value of your property – or properties if you’ve managed to build a healthy property portfolio – you’ll be in a much better position to improve your overall personal wealth.
You may find out, for example, that your property has significantly increased in value over the course of a few years. This will give you scope to capitalise on the equity you’ve built up in your property – i.e. what your property is worth compared to how much you owe on your mortgage – and possibly purchase an investment property or diversify into other investments.
On the other hand, if your house has decreased in value, you will be aware that you are facing a depreciating asset or have negative equity – in other words the mortgage underlying the property is greater than its current market value. If this is the case, you’ll be in a better position if you take action and restructure your finances.
How to arrange a valuation While a real estate agent will be able to offer you a ball park figure on what your home is worth, engaging an independent valuer is usually the best option.
An independent valuer’s assessment should be completely unbiased as they have no financial interest in determining the value of your home.
How much will it cost? The cost of a valuation will vary depending on the type of valuation you select. Some websites offer free valuations online while others offer appraisal reports for less than $100. These valuations predominately rely on data from recent home sale prices, usually a few months old, combined with consideration of current market conditions.
The most accurate option is a personalised assessment where the valuer visits your home. This will typically cost around the $300-$400 mark but will vary from city to city and valuer to valuer.
Not only will this type of valuation take into account recent home sales data and current market conditions, it will closely analyse the value of your home based on a range of factors such as the location, land size, materials used to construct the property and car spaces – giving a more precise estimate.
If you’d like help tracking down a valuer, please feel free to give us a call.
An asset is any resource owned by an individual or entity that provides economic value for a future benefit.