Different
sectors reported high growth in 2014 but the sector of real estate proved
higher growth in the last year. Property valuation is an attached sector of
real estate. Property valuation business is the business that used to provide
estimate on the value of the property.
Property valuations Perth is a high yielding business activity. The
estimates provided by the valuers are used by the investors and the property
holders while making decisions regarding property. Consider a case, if an
entrepreneur does not know actually the value of any property then how can he
enter into a property sale purchase transaction? So, the property valuation
businesses used to help investors to make accurate and certain decisions
regarding property.
A great deal
of techniques are used in property valuation, some of them are described below:
1.
Profit based Valuation:
Profit based valuation are used for properties that possess
the potential of earning through them. It means that the investor does not only
acquire the property but also the earning attribute attached with it. The
technique is used for agricultural land and restaurant property valuation.
2.
Investment based Valuation:
Investment based valuation is used to value property which is
kept for earning rentals. The values of these properties are computed through
using the discounted cashflows from future rentals.
3.
Cost based Valuation:
Cost based valuation is used for properties which do not have
similar properties for comparisons and one have to use the original cost of the
property for computing values. This technique is not widely used as it makes
the use of historic cost for property valuations.
4.
Market based valuation:
Market based
valuation is a widely used technique which helps the investor to get their
property valued at current market rate. Under this technique, the valuer use to
review the recent sale purchase transaction of similar properties and then
compute the respective property value.
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