*This article first appeared in the May 2018 Midland Express
Things have changed in the Kyneton real estate market. A lot, actually.
You may have bought your home 30 years ago or even 18 months ago, and the chances are that the valuation on your home is quite different to what you paid for it.
So what exactly is an valuation? A valuation is a calculated figure that includes an assessment of the land value and the improvements, taking into account the depreciation of the property since construction. It also includes sales comparison, and a breakdown of living areas, outdoor areas and car areas.
In short, it a valuation can also impact on important decisions such as refinancing, future borrowing and your current insurance position.
Let’s look at insurance for a moment. If you have a valuation of your property that is relevant to the time that you purchased the property, it is unlikely that your insurance covers that estimated actual cost to rebuild the building.
If you are an owner of a residential property including strata developments, or an owner or landlord, it is important that you obtain a valuation of your property to ensure at that you are covered for its actual cost to replace. Many people also forget that the cost of demolition needs to be factored into this.
If you are looking at re-financing your home mortgage to borrow for renovations of consolidation of other expenses or debts, it is equally as important that you get an accurate and current evaluation of your home in the current market place. If the value of your property has increased, the chances are the bank (particularly in this current climate of financial scrutiny) will finance you where you need to be.
If you’d like your property valued so you can ensure your insurance and borrowing capacity is relevant, head to jenniferpearce.com.au