As a current or aspiring property investor, it’s important to be aware of the key differences between property valuations and appraisals. If you’re in the property market, chances are you’ve heard these terms discussed before.
They are of particular importance for tax planning, which is certainly an area we would recommend you discuss with your financial planner and/or tax adviser.
Let’s start with a Property Valuation.
A valuation can only be conducted by a qualified valuer who is trained and licensed to ensure that they provide an accurate value based on a wide range of attributes of your property. This will often include factors such as:
- Location
- Features
- Age
- Demographics of the area
- Local council zoning regulations
- Building and/or structural issues
A valuation will provide you as the client with a written report, which will contain all of the details of the property’s value. The report is typically far more reliable than a standard property appraisal and is often a sensible idea to be obtained during such circumstances as; Renting out your property, Moving back into a property, Divorce, Repatriating to Australia and Financing.
We then have the Property Appraisal.
The Appraisal is typically delivered by a real estate agent and is intended to provide you with a guide to the property’s value. It’s unlikely that a fee would be charged for the appraisal and it is certainly not legally binding. If you are seeking an appraisal, perhaps to consider selling your property, we would suggest partnering with a local agent who has experience in the area.
LoanSuite Pty Ltd is your lending partner for all of your home loan, investment property, business and commercial financing needs. With our wide range of lending solutions, expertise in financial planning and investment strategies, and extensive experience in working with both Australian residents and Australian expats, we are your partners for your lending needs.
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LoanSuite Pty Ltd is an Authorised Credit Representative (Credit Representative Number – 494608) of My Local Broker (Australian Credit License – 481374). Important Disclaimer: Your complete financial situation will need to be assessed before acceptance of any proposal or product.