10 Tell-Tale Signs You Need to Get a New Valuation

They did the fly-infly-out now unfortunately all goodthings come to an end and we're havingapart the hangover after that greatparty and it is because of the end ofthe mining boom and the fly in fly outsare flowing and flowing out and they'restaying in Melbourne and Sydney now andthat of course is meant a significantfalling away in demand now particularlydemanding the rental market now at themoment there are twice as many emptyhouses looking for a tenant in Perththan there are in Sydney okay so that'sa market that is now adjusting from avery strong growth period it needs tofind a floor and the thing that alsoneed it needs to find is a little bit ofconfidence it is an economic equation itis an economic issue when thatunemployment rate starts to fall thenyou'll see a turnaround in migrationthen you'll see a for a flattening ofthe housing market input but you know ifproperty investment is for the medium tolonger term you can buy properties nowin Perth at prices that are lower.
property valuation

Thanthey were five years ago you know andyes it is going to be tough to find atenner House Valuations for Insurance Purposes and you do have to take alonger-term view but the otherinteresting thing in Perth is guesswhich capital city has the highestproportion of first home buyers you seeso there's some good news there forthose are wanting to get into the markettwenty percent of that market a firsthome buyers at the moment and of coursenumbers for investors are lower but itis a transition cycles don't all move atthe same rate and this is what I say itis about those individual supply anddemand factors and some are positivesuch as Sydney and some are negativesuch as as Perth but over time they willwork them way back to a floor and thenstart to grow again so Andrew we're hereat the Sydney property buyers exposewe're speaking to the converted you knowmost of the people here have a by localpeople towards residential property andobviously you've been pumping the tiresup is there any danger points is.

Can You Pass The valuation Test?

The monthsto june combined capital city rentshave fallen by which is the largest annual www.melbournevaluers.net.au fall on record the only citiesrecord arrives an average house rentsover the past months have beenMelbourne Hobart and Canberra theremaining capital cities also rents fallover the past months with the largestdeclines in Darwin and Perth whereaverage weekly house rents were down by point nine percent and by eight pointseven percent respectively with homevalues rising and rental ratescontracting investment rental yields arecompressed to new record lows in Junecapital city gross rental yields arecurrently recorded a three point threepercent down from three point sixpercent a year earlier the her aboutunit markets the only capital city torecord a rise and rental yields over thepast year thanks to a strong rise andweekly rents over the past monthsSydney and Melbourne are showing thelowest rental yields of any capital citywith houses providing an average grossyield around the three percent mark inboth cities while unit yields areslightly higher averaging about % thelowest yield scenario implies the mostinvestors would be experiencing anegative cash flow situation.
property valuation

on theirinvestment properties at least over thefirst few years of ownership in a signthe buyers might be finally getting someleverage back in the marketplace theaverage selling time is now starting tomove higher across the capital citiesindex the average selling time iscurrently tracking at days for thosehomes sold by private treaty compared to days a year ago one of the largestjumps in average selling time is inSydney where the average sale period hasextended from days a year ago to days vendor discounting rates are alsogenerally expanding suggesting sellersare having to offer up higher discountson their initial listing price in orderto make a sale both these indicatorsprovide a hint that housing marketconditions may be moving through thepeak of the cycle dwelling values inSydney we're up a stunning . percentover the june quarter and the annualrate of growth has bounced back to .percent after several strong months ofcapital gains the annual pace of grow.

The Secret To valuation

Valuation in the trust which you should have bought in trust you were www.valuationssa.com.au two other YouTube videos or read my book you would end up in business banking nowin business banking your business bankercan actually give you the name of thevaluer and the valuation company theyuse for your property and what you needto do is ring up that value on let's sayit's Bob from ABC evaluations by the waythat's a hypothetical company you ringthem up and say Bob I've got a townhousein bentley and I want to get a valuationfor the property okay now what happensis you get a private valuation but youasked for the valuation formats to be ashort form proform evaluation which is avaluation useful mortgage purposes.

Home by banks and you want to meet Bob on siteso you gotta if you got tenant in thereyou would organize that with yourlandlords to make sure you can let Bobthrough the property when you meet Bobyou say Bob and these are the magic wordyou need to say to a valuer I'm neverplanning to sell this property I'm abuying hold long-term investor I'msimply reevaluating the property so ican get a creator of the property andbuy another investment property in factI've grown to local agents the top fiveor three agents in the area and I've gotwritten letters here that the propertyis worth I've also downloaded RPdata reports showing you the recentsales history of the area and these arethe comparable sales that substantiatemy claim that the property is I'vealso got the top comparable sales anduse.

At Last, The Secret To valuation Is Revealed

Perth the Hobart market bitsluggish and you can House Valuations Relate that to thestate GDP you can relate that to thecity's you know gross domesticproduction and what's going on jobattraction so all of those things youknow jobs then lead to sentiment youknow if I'm feeling good about my jobI'll spend a little bit more which meansthe economy moves on a bit and I'mpotentially if things are really goodolive to invest so those types of thingsneed to be in play in terms of lookingat it from a macro perspective correctand if you're in a state where thegovernment's poorly managing it or notencouraging

Property Investment or notencouraging investment in jobs you knowthat's that's something that's very muchout of control the pits enter into thatcategory so they have a focus the numberone biggest risk that your face wheninvesting in property from a macroperspective is just the general marketand economic risk what's the next oneman legislationand regulation risk so we're talkingabout law changes here some of the bigthings that that we see from governmentaround changes now obviously theno-brainer one is around negativegearing you've heard us talk about thison the podcast before if you knew thepodcast gained a little reach out startfrom the front work your way through theepisodes you'll get greater knowledge bydoing that but we're talking about ifthere were changes and again that isoutside of my control and so ultimatelywhat will it mean for my investment willit impact on my investment well that'sobviously depending on where you withthe area of you pick and the ultimatelyproperty that you pick as part of thatso that's that's an interesting oneanother example that Bryce is yeah wellyou don't look too far back for thatnegative gearing ones is obviously withthe the the recent election but APRAthey've changed the rules for lendingand so people who were who are buildinga portfolio based on a thin sort ofthread of you know high or villa'sputting the least amount of capital thatthey called so they could.

How much time is consumed for completion of Property Valuation process ?

Property Buyers Will Home Valuers that the value of theunderlying assets is seriously affectedto be there in a positive or negativeway this brings me to the concept ofhighest and best use as it relates tospecialized business assets theinterdependence of the SS amongstthemselves into the business can oftenhave a big impact on their and theirvalue and this may change as externalfactors impact them a good example mightbe a long-established manufacturingfacility in an area where industrial usewas perhaps that the primary use for along period but over time that that usesgeneral it has gradually changed towardscommercial or residential and so theunderlying land use the potential landuse has changed and what that means isthat potentially the highest and bestuse of that aggregate group of assetswould be to changes.

Valuation site to an alternative Valuations VIC use so as you going tomajor because of the interdependencebetween the land and the buildings andimprovements on the land and the plantequipment you need to take a consistentview about what the highest and best useis for that aggregate group of assets soin that context the highest and best useof the land in isolation can't beconsidered without considering theimpact of achieving an alternative useon the on the other interdependentassets that are related to that land thebuildings the improvements and the plantequipment so ultimately where we're agroup of assets are under dependent andit's absolutely vital that the same useassumption is applied to that wholegroup of independent assets so whetherit's the current use or the alternativeuse in determining what is the highestand best use of that group of assets thetip goes on to discuss the three mainapproaches to value.

Valuation the market incomeand cost approaches the market approachcan generally be used fornon-specialized assets to determinetheir market value but of course themagician many assets usedthe business setting tend to bespecialized and so to that extent othervalue based approaches need to beconsidered one of the most commonly usedapproaches for the specializedimprovements and plant equipment is thecost approach and the tip describes howthe cost of approach can be used todetermine values for these assets andand considers all of the forms ofobsolescence and how property.

They Vauation impact on payor provide some guidance on how manyways can address these issues one of theresources that's available to to API andpens members is IBS online all membershave access to that facility and there'sa very good resource there at the costapproach to tangible assets it's an AVSseated and and that provides a lot moreinformation about the methodology andhow to apply that methodology for thevaluation.