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$880 valuation for CGT purposes?

Discussion in 'Property Finance' started by CargoCult, 11th Mar, 2016.

  1. CargoCult

    CargoCult Member

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    26th Feb, 2016
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    Location:
    Melbourne
    I'm about to move out of my PPOR and would like to obtain a valuation to establish a cost base. I'm not sure what will happen in 6 years time, so I believe it would be advantageous to obtain a valuation now.
    I have asked for two quotes from valuers I found on Google, and they are around the $800 mark. Is this reasonable for a valuation? I read in another forum of people getting it done for 300-400 but they do not mention the name of the valuer.

    Would anyone suggest a valuer in Melbourne where I could get a more reasonable price?
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Melbourne, Nationwide
    Talk to your broker. They can probably get you a valuation for free through a bank.
     
  3. Delfredo

    Delfredo Member

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    Sydney
    In what situations can they get it for free? I do know that some brokers do refer their clients to a 3rd party valuer that charges approx $600, rather than attempting to get a free valuation done through the bank.
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    @Delfredo quite a few lenders allow brokers to order valuations, usually at no cost. The valuations are usually from a registered valuer and you get a full report.

    The catch is the valuer follows the banks instructions and we find that quite often the valuations can be conservative (possibly lower than your own opinion). Valuers do tend to be pesemistic in valuations even if you approach them direct because they have some liability for that valuation.

    You could get a valuation done via a broker. If you're not happy with the results you could them approach another valuer directly for a second opinion.
     
    Last edited: 11th Mar, 2016
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes, Peter has a good idea of using a broker's valuation first and then consider whether to get another when that comes back. In this case you would want a valuation as high as possible.

    Example, a $20k higher valuation may result in CGT being lower by:
    50% CGT discount = $10k x marginal tax rate of say 37% = $3,700 extra tax.
     
    albanga likes this.
  6. JohnPropChat

    JohnPropChat Well-Known Member

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    10th Sep, 2015
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    Location:
    Perth
    Has that PPOR been an IP before? If so apportionment rule may apply.