NSW How to value a property

Discussion in 'Property Analysis' started by Joe Davola, 17th Jul, 2018.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Joe Davola

    Joe Davola Member

    Joined:
    10th Aug, 2017
    Posts:
    24
    Location:
    Newcastle
    How does everyone go about valuing a property?
     
    Joe Davola, 17th Jul, 2018
    #1
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    3,980
    Location:
    Canberra, Brisbane and Sunshine Coast
    Is it a property you own or are buying?

    If buying then the lender will arrange their own valuation.

    If you already own the property then a desktop report such as residex/RP data will give you an idea of the current value.

    Cheers

    Jamie
     
    Jamie Moore, 17th Jul, 2018
    #2
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    depends on what you want the val for.

    sometimes you want a high valuation say for an equity pull, other times you may want a lower one

    ta

    rolf
     
    Rolf Latham, 17th Jul, 2018
    #3
  4. marty998

    marty998 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    627
    Location:
    Sydney
    Sydney residential property is like the only asset class in the world that bears no relationship whatsoever to a typical discounted cashflow model.

    That, and bitcoin I guess.
     
    marty998, 17th Jul, 2018
    #4
  5. Joe Davola

    Joe Davola Member

    Joined:
    10th Aug, 2017
    Posts:
    24
    Location:
    Newcastle
    I
    I guess more info needed.

    Its a property I'm buying. I want to know market value currently and what it would be worth with after a reno. Its boarded up at the moment. Brick veneer, looks structurally sound, solid on the outside.
     
    Joe Davola, 18th Jul, 2018
    #5
  6. Joe Davola

    Joe Davola Member

    Joined:
    10th Aug, 2017
    Posts:
    24
    Location:
    Newcastle
    Its a property I'm buying. I want to know market value currently and what it would be worth with after a reno. Its boarded up at the moment. Brick veneer, looks structurally sound, solid on the outside.
     
    Joe Davola, 18th Jul, 2018
    #6
  7. jprops

    jprops Well-Known Member

    Joined:
    24th Sep, 2015
    Posts:
    895
    Location:
    Sydney
    [​IMG]
     
    jprops, 18th Jul, 2018
    #7
  8. Propertunity

    Propertunity Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,476
    Location:
    NSW
    To value a property pre and post reno you need other examples (comparable sales) to work it out. Find 3-6 properties, same suburb, that have sold in the last 3-6 months. Make allowances for better or worse than the one you are interested in.

    Regarding being boarded up - bear in mind that if a valuer makes a note that the property is 'unlivable' on his formal valuation for the lender you are trying to borrow money from, you will likely be declined a mortgage.
     
    Propertunity, 18th Jul, 2018
    #8
    Sackie and Joe Davola like this.
  9. Redgy Red

    Redgy Red New Member

    Joined:
    18th Sep, 2018
    Posts:
    1
    Location:
    Adelaide
    From my observations, I'd calculate houses to full in value of around 3 percent a quarter in value as the market is overpriced in Sydney and Melbourne and falling.
     
    Redgy Red, 18th Sep, 2018
    #9
  10. Pumpkin

    Pumpkin Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    1,342
    Location:
    Brisbane
    Valuation is an art, not science.
     
    Pumpkin, 19th Sep, 2018
    #10
  11. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,536
    Location:
    Sydney
    London and NY and Hollywood dont exactly fit the bill either. Or Monaco...
    I'm sure there is a long list.
     
    Paul@PAS, 20th Sep, 2018
    #11
  12. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,536
    Location:
    Sydney
    A value is determined by what buyers may be willing to pay at a point in time. Some areas of Sydney are rising as an example. But does that make them overvalued or valuable ?
     
    Paul@PAS, 20th Sep, 2018
    #12