Property Valuation

How do you determine the true valuation of a property you are interested in purchasing? There are four basic ways to do this which this article covers. There is the Discounted Cash Flow method, or DCF, there is the Cap Rate method, there is the Replacement Cost method and there is the Comparable method. Each one has its own advantages and disadvantages.

Do you know how to determine the value of your commercial property? Many property owners do not know how to value these sometimes large investments and it cost them thousands if not hundreds of thousands of dollars. Knowing the right way to determine the value can prevent you from making costly mistakes when selling, or buying new investments. Buying commercial real estate can be very lucrative, be a smart investor and read this article before your buy or sell.

In the property investment industry, South Africa follows a unique system where every plot is reflected on a diagram and ownership of the plot is recorded in the relevant Deeds Registry, available for public viewing. South Africa is known to have one of the best deeds registration systems in the world with an exceptional degree of accuracy and security because of the influx in property investing in the country. Property can be owned individually, jointly or by a corporation or company registered within or outside of South Africa.

Making the best BMV property deal possible is dependent to a large extent on the valuation that has been determined for the property in question. Maybe one might even say that the deal is dependent on the surveyor valuing the BMV property. Your success or failure in the property investment business is, therefore, contingent on what information you are able to extract from the surveyor.

It is no secret that sellers want to sell high and buyers want to buy low. But they often arrive at the negotiating table with very different ideas on price. A fair and objective property valuation can help buyers and sellers find common ground and streamline the negotiation process. In the end, the property is worth what a buyer is willing to pay under current marketing conditions.