Valuation of rental property



From: Sam Coster

We purchase two IP (Studio apartments under
50sq.m with outside covered in balconies
against all the advice.)
We then fully furnished with all those little
extras shrub's and wall hanging plants just
like home.
After 7months they have appreciated 30% in
value and are returning 11% rental.
we want to get a new Val but the valuer will
not take into account the great rent return
and is even sceptical about the appreciation
Any suggestions
Enjoy the journey, its half the fun.
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Reply: 1
From: Russell H

find a different valuer!
however, you need to remember that a valuer is staking his reputation on that report. If it is wrong, he could be sued. The value of your property is what someone is prepared to pay for it. That is determined by comparing it to similar units recently sold - If nothing like your units have been sold recently for prices that you think yours is worth, then the valuer will be hard pressed to demonstrate a higher value. If you know of specific sales at prices you are happy with, make sure he knows them. The rental return is only part of the story, they are clearly doing well because you have furnished and present them well, but that doesnt change the value - and since banks are reluctant to lend on them, ( for good historical reasons no doubt!) they will be harder to sell and therefore worth less.
(ps, it is better to post to the Property Investor Forum!)
hope this helps ( btw, where are your units?)
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