In most instances our property represents one of our biggest assets, if not our largest.  Many property owners have a debt registered against their property in the form of a mortgage bond, to which they are contributing monthly.  Our property is an investment and we are hoping that at some later point in time when we sell it, we will enjoy a good return on our investment.

Why not rely on an older appraisal value?  For one thing, our property value changes frequently.  Our property is worth what a willing and able buyer will pay for it today.  In order to determine the value we would consider what similar properties have recently sold (these being the facts), and what similar properties are currently on the market for sale (these being the competition).

We would also look at the general market activity and buyer demand for similar properties in the local market.  Once we have taken all these factors into consideration the market research will show what the current market value is.  Whilst it’s not an exact science, if correctly done using current sales on genuinely comparable properties the result is accurate to within a few percentage points.

It’s important to remember that only a qualified Valuer may actually “value” your property – but that an estate agent that is not a Valuer may “appraise” your property.  Be sure to speak to an experienced agent to ensure accuracy.

When there is strong market activity, such as we are experiencing now, we see that property values change at a faster rate.   A recent sale of a comparable home at a record price means your property value has just changed.  So why know the value?

It’s important to do an annual assessment of your assets and liabilities for wealth planning.  Just what is your net asset value?  How does this relate to your retirement planning and future income stream?

If you had a few million Rands invested on the stock market, how often would you check on their value?  Every few years – or every 6 months?  We are speaking about your single largest asset here…

When analyzing your assets and liabilities (together with your income and expenses) you may find that you have capacity to purchase an investment property.  Rental returns are higher than I can remember for the 27 years I’ve been in the local real estate market – with all forecasts that returns will continue to increase.  That means that, in many cases, within a few years your rental income will cover your bond installment giving you a positive cash flow.

If you pay the excess into your bond you could repay it much faster than the standard 20-25 years.  That means you will have another asset generating a monthly income that can feature in your wealth planning.  Consider also the future capital value when you sell it.

So why not speak to an experienced agent today about your current property value?  An appraisal is usually done at no charge – and it gives you critical information you need now.

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– Morne Prinsloo | 079 047 5172

Call me for an obligation free valuation of your property in the following areas: All of Krugersdorp including Pinehaven, Featherbrooke, Strekfontein, Honingklip, and Oaktree.

Roodepoort areas include Radiokop, Allen’s Nek, Strubensvalley, Little Falls, Honeydew Ridge, Honeydew Manor, Wilgeheuwel, Ruimsig, Willowbrook, Amarosa, Poortview and Tres Jolie.

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