Property
Valuation is an exciting business which helps investors in making decision of
their respective properties. Perth is the heaven for real estate investors and yields
good return on their investments. Real estate is one of the most flourishing
businesses in Australia. Property valuation is an attached field which works
under real estate sector.
What are the techniques used by
Property Valuers?
1.
Cost valuation Model:
Cost based valuation model is used when the property does not
have similar property available for price comparison. And as a last resort the
valuer uses the original cost of property after necessary adjustments for
inflation, to reach at the final price.
2.
Profit based valuation:
Profit based valuation technique is used when the property
has earning ability and it is not only the value of property but also the
earning factor which would be acquired or lost by the investor.
3.
Investment based valuation:
Under this approach the property is valued on the basis of
discounted cashflows of their future rentals. Some properties are purchased
with the reference of earning rentals from them, these types of properties are
commonly known as Investment properties and for their valuation, the described
technique would be considered best to estimate its value.
4.
Market based Valuation:
Market based valuation is the widely used technique that is
used for most of the properties. It is very easy and simple technique which
reports accurate estimates. Under this approach, the property is valued in
context of the other properties in the similar area. A sample of properties
with similar characteristics is taken and then adjustment for difference is
made to arrive at the final value of the respective property. Vauler used to
examine recent sales purchase transactions of the related properties in the
area to ascertain the cost of the property.
Thus Property valuersPerths have exciting chances of growth and expansion which is the major
attraction for entrepreneurs.
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