Regular valuations are important for investment property owners to maximise returns. But how often should you get a professional appraisal? Here are some guidelines based on your goals.
Annually for Ongoing Management
Experts recommend a yearly valuation to inform investment decisions and track property performance. This allows assessing rental yield, monitoring market trends, and identifying issues needing attention. Annual valuations give a clear picture for taxes and financing too.
When Refinancing or Securing Finance
Lenders will require a current valuation when applying for investment loans or refinancing. Even if you don’t plan to borrow, an updated valuation gives you leverage in negotiating new financing if the need arises.
Before Major Renovations or Repairs
Appraise the property both before and after any major upgrades, repairs, or renovations. This quantifies how improvements impact value to make sure spending aligns with increased capital gains and rental income.
When Buying or Selling
Valuations minimise risk when purchasing by confirming the property aligns with your investment goals. For sellers, an appraisal verifies expected profits and helps set an optimal listing price. For estate planning, valuations inform inheritance and capital gains tax.
If Local Market Conditions Change
Keep a pulse on area market conditions through real estate sites and local economic news. If new developments cause fluctuations, obtain a fresh valuation to understand the property’s updated position and opportunities.
Regular valuations provide crucial data to maximise returns on investment properties. Align appraisal frequency with management and ownership activities to make informed financial decisions.
