Property valuation and its role in decision making:

Property valuation business plays an important role in making decisions that whether to invest in any property of not. Property investments involve huge capital so an investor cannot make decisions bluntly on the basis of little information. A rationale investor used to consult property valuations before investing or selling some property.

Australia’s city, Perth can be considered as the most exciting and worthwhile place to invest in real estate business. Here the price of property remains stable with good returns on investment properties. Propertyvaluations Perth has potential to grow and earn because there are a huge clientele of investors who want to invest there and eager to know the price of their property. Property valuers have a fragile duty to do as they need to put extra care and diligence in performing their duty.

Valuation Models used by Property valuers:

1.     Market based Valuation:

Under this approach a valuer used to review prices of similar property in the area and then estimate the price of a particular property with reference to it. It is a widely used technique in which value used to follow active market price of other properties and then ascertain the price of their respective property.

2.     Cost based Valuation:

As the name shows, under cost based valuation the property is valued on the basis its historic cost due to the absence of its active market or no similar type property exists to make comparasions.

3.     Investment based Valuation:

In this approach the property is priced on the basis of its future rentals that can be earned from letting the property.

4.     Profit Based Valuation:

Under Profit based valuation the property is valued on the basis of its future earning that can be earned through acquiring the property. It means that not only the asset value is included but also the earning potential of the property must be included into its property valuation.