How to assess Properties Like a Valuer

Valuers are often very unpopular in the eyes property investors, but I came a cross a great article in Your Investment Property Magazine this month that is definitely worthy of a read. The key is to remain objective and not let your emotions rule your decision making. Some great tips here especially when it comes to ensuring any purchase decision has taken into account the critical factors.

  1. Be realistic and objective – don’t let your heart rule your head. This is business.
  2. Research your market – This is the cornerstone of understanding value. Take your time, talk to local agents, go to auctions and jump on the internet. Informed decisions pay off.
  3. Carry out a thorough inspection – measure the home’s dimensions, turn on the taps, look at the stumps and walk the boundary. Look for every positive and negative you can.
  4. Seek independent information – estimated projections on rising values and rentals from the organisation selling you the property are worthless. Seek actual information from local independent professionals and try to substantiate any information yourself.
  5. Position, position and what was the other thing? Never ignore the basics. If it’s on a train line or next to an arterial road, it will be trouble. Look at the surroundings.
  6. Compare like with like – try and find comparables as similar as possible to the subject. These will be your beacon.
  7. Think like a local – if everyone in the street wants lock up car accommodation, make sure your property doesn’t buck the trend.
  8. Watch for over-capitalisation – a half court tennis court may seem like a good idea, but unless the owner is raising a Tomic, most buyers will find it next to worthless. Be honest about what it really adds.
  9. Think land, dwelling, ancillaries – breaking down the property into its parts can help you see the whole.
  10. Use recent comparables – if you’re using sales from a year ago when the market was booming, you are relying on false evidence. Keep it current.

At Loan Wize, we believe that property investment can be a fantastic way to create wealth, with the added benefit of often being able to cover the cost of ownership from the rental income and tax benefits. with interest rates at a 50 year low, and property prices at a 5 year low and trending upward, the timing couldn’t be more perfect.

If you are considering investing in property, or would like to know more about how to go about this, we would love to speak to you.

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