Perth Property Valuation and its importance for Investors:

 PropertyValuers Perth is an important business activity that helps an investor to know about the worth of their property. If a person is unknown about the worth of its property then there would be probable chances that he will enter into wrong decision making but if he knows the right and accurate value then he would be able to make informed decisions that would be much more fruitful for him.

There are several ways for property valuation but some of the important ones are written below:

1.     Cost based Valuation:

Cost based valuation is used for a property which has too many distinct features and due the distinction the valuer is unable to make comparison between the existing properties and the target property.

2.     Profit based Valuation:

Profit based valuation is used for properties which has earning potential and the value of asset is determined with the asset value along with the earning potential added in it. This technique is used for hotels and agricultural lands because they have earning potential in them.

3.     Investment based Valuation:

Under Investment based valuation the property is valued that by discounting the future cashflows that are earned through letting the property. These type of properties are purchased with the reference of earning rentals after acquiring the property and it would be much more justified to value it on reference of it.

4.     Market Based Valuation:

Market based valuation is used when there is active market of similar properties and the valuer needs to ascertain the value of target property with reference to the market price of other properties. For the valuation purpose the value used to value recent sales purchase transaction of the similar properties in the area. This is a widely used technique and reports more accurate results.