A real estate valuation is a good way to put a property value to your home (or homes) and other real estate. You don’t need to be selling to do a property valuation. It’s good to know what your most significant assets are really worth in any given year. There’s a lot you can do with the information when it comes to your personal financial planning.
However, there are some things you should know first.
Data analysis in real estate valuation:
Real estate valuations don’t only look at the condition of your property. You could have spent a small fortune on it to keep it in pristine condition, but that doesn’t mean it is worth the same, or more, than you paid for it.
Property valuations take other factors into account. Some of these can bring down the true value of your home. Data taken into account from your area can include:
- Price trends
- Recent sales
- Local rates and taxes
- Environmental factors
- Is your property in a company
- Is your property in a Family Trust
- Agricultural, Residential and Business Rights – and changes
- Property and building by-laws – and changes
In summary, a great many things outside of your control can decrease the real value of your real estate. That said, such factors can also add few figures to the total on your property valuation. Wouldn’t you like to know, either way?
An accurate real estate valuation is a useful tool and should not only be done by your local estate agent. Ideally, it should be done by accountants in conjunction with professional estate agents, resulting in correct data. The accountants can then advise you on how to make the most of the resulting valuation.
Sell? Don’t’ sell? Subdivide? Buy the property next door too? Add your real estate (with its valuation) to a family trust? Make use of tax deductibles to renovate? Hang on to a dead weight property for coming business rights? You’ll have those answers at your finger- tips with professional real estate valuations.
You might also be interested in
Innovative tax solutions using Family trusts
Changes in SARS regulations for the taxation of family trusts with assets in South Africa and / or abroad have put a bit of a dent in the massive tax savings afforded by putting one’s Estate into a Family Trust. The innovative tax solutions offered by family trusts...
What is the best accounting software?
The best accounting software is best for managing complex, diverse and compliant financial activities. By this simple definition – Xero is the best accounting software – and will continue to be. In fact, Forbes magazine has named Xero the ‘World’s Most Innovative...
How much do payroll companies charge?
Payroll is one of the most complex accounting tasks faced by companies. Even a small company with just a few employees faces tightly regulated payroll processes. The labour law regulations, SARS and other statutory requirements associated with payroll can become a...
With over 23 years of unwavering expertise, I am a seasoned Chartered Accountant committed to financial excellence. My journey in the realm of finance has been marked by astute strategic insights, meticulous attention to detail, and an unyielding dedication to precision. Over the years, I've navigated the complexities of financial landscapes, providing invaluable counsel to diverse clients. My proficiency extends across auditing, taxation, and financial management, coupled with a profound understanding of regulatory frameworks. As a registered professional, I have consistently upheld the highest standards of integrity and ethics, earning a reputation as a trusted advisor in the dynamic world of finance.
