‘What Investors need to know’
Astute property investors should think more like a property valuer. They should approach each property transaction rationally, without emotion and armed with as much information as possible.
While it is not an exact science, a good valuer usually provides a valuation based on recent sales of similar properties, plus other relevant information.
Valuers are guided by industry standards that start with the legal concept of market value. That is ‘the estimated amount for which a property should exchange on the date of valuation, between a willing buyer and a winning seller in an arm’s length transaction. This should occur after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion.
It is best to find a valuer who is experienced and knowledgeable about the area you are considering investing in or where your property is located. This is particularly relevant if you are investing interstate.
In determining the value of a property, the valuation expert will visit the property and look at numerous things including, land and building size, construction details like the type of materials used in construction (for example fibro or brick), the location, other sales in the area, the condition of the existing dwelling, and ancillary details like pools, garages and off-street parking.
WHAT TO LOOK FOR AND WAYS TO THINK LIKE A PROPERTY VALUER WHEN INVESTING IN PROPERTY
Views: Can you build up or replace a wall with sliding glass doors/windows to take advantage of a view.
Adding extra rooms: Make sure the rooms fit in with the floor layout and continuity of the property. An eight or nine room ‘rabbit warren’ won’t help.
Location: This is always important especially if the property is located near a railway station, schools, amenities or shops.
Square meterage: The bigger the better when it comes to property size.
Garage, carport or off-street parking: This is particularly important if the property is in the inner city where parking is at a premium.
Granny flats: This remains a popular trend especially with the potential for doubling your rental return.
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