Can anyone recomond a good valuer inner bayside melbourne? St kilda,/Middle park area.
How much does it normally cost and what does it involve?
I am going to rent out my Pinciple place of residance and move into a differant property I have bought. The property I will be renting out has gone appreciated in the property boom so was advised to get a valuation of the value of it before I rent it out to help with Capital gains tax in the futrue if I was to sell it.
I’d recommend phoning around the local real estates and asking for names of registered valuers – they’ve always been only too pleased to help us with this issue.
Look up “Valuers-Real Estate” in phone book to find a local one.
Don’t pay too much more than about $250 for the valuation.
Choose one that you get along well with on the phone and is sympathetic to your need for a generous valuation in order to minimise CGT in the future.
I always try to meet the valuer in person and strike up some chit chat.
Emphathise that it is for CGT only and IS NOT going to be used to get a mortgage or any other finance. This may ease their conscience in being generous with Valuation as they will not have to answer to any lenders.
Or you could simply get a free evaluation of what a real estate agent thinks your property is worth in the current market in writing. They like to give pie in the sky values that are well above realistic market values……
cheers
Live, Learn and GrowLifexperience
Thanks for the adivce. I think I will go for the valuation so it will be all in writing although the real estate Idea is good to they do always aim for the higer price and they have just put the apartment next door to me on the market and a very high price it is the same as mine.
Hello Summer2006,
I was in a similar situation and I misunderstood the capital gains tax laws to be:
CGT = the valuation when you move out less the cost of the property initially.In actual fact the tax office use a totally different formula :
Total capital gain made from the CGT event x (number of days in your ownership period when the dwelling was not your main residence divided by total number of days in your ownership period)
And they give the follwoign example on their web site: http://www.ato.gov.au/individuals/content.asp?doc=/content/36883.htm
“Main residence for part of the ownership period
Andrew bought a house under a contract that was settled on 1 July 1990 and moved in immediately. On 1 July 1993, he moved out and began to rent out the house. He did not choose to treat the house as his main residence for the period after he moved out, although he could have done this under the continuing main residence status after dwelling ceases to be your main residence rule.
Note
The home first used to produce income rule does not apply. This is because Andrew used the home to produce income before 21 August 1996.
The contract for the sale of the house was settled on 1 July 2002 and Andrew made a capital gain of $10,000. As he is entitled to a part exemption, Andrew’s capital gain is reduced as follows:$10,000 x 3,288/4,384 = $7,500
As Andrew entered into the contract to acquire the house before 11.45am (by legal time in the ACT) on 21 September 1999 but the CGT event occurred after this date, Andrew can choose to use the discount method or the indexation method to calculate his capital gain. “
Note: I am not an accountant so get professional accounting advice.
Hope this helps.
Rgds,
Vivek
Vivek
hi summer ’06
alternatively you can wait till you sell it and then have it valued ‘as at <insert date>’.
a lot of valuers prefer this as they can use sales which have occured after the actual date but still within reasonable time frames to establish what could be higher figure than what they could justify today.
i’ve used Egan’s in melbourne lots of times for my southern clients, and am happy to keep using them if you know what i mean.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneThanks for the link. It is a hard one I have been advised by differant accountants differant ways
1. get the valuation when you move out. Then this valuation can be used in the futrue when the property is sold. Eg CGT is from the valuation on moving out to the date of sale.
2. If you live in the property for 4 years and rented it out for 6 years CGT would then be the propotion you rented it out eg 60% a capital gain of 400,000 would then be 240,000.To add to that the neighbours sold there apartment last week.
They are exactly the same so I know what the value of the one sold isHi Summer2006,
I heard exactly the same conflicting pieces of advice which is what made me go to the ATO web site in the first place.
I guess that you have some interesting choices:
1) Hold onto the property and let the value of your tax free capital gain be “diluted†if the market stays flat for a while.
Or
2) Sell the property and realise the tax free capital gain now, especially since you know what the market is paying for the apartment.If you did decide on option 2, I would be going to the agent who sold the other apartment and seeing of you could “do a deal†given that they already have a list of people who have expressed an interest in the other property.
Might save yourself some advertising costs.
Best of Luck,
Vivek
Get a few valuations (RE Agents can do it in writing)now and then when it comes to sell, you can choose whichever method allowable at that time by the ATO to give you the minimum payable CGT.
More options…
Good Luck
Live, Learn and GrowLifexperience
It is hard, I had planned to keep it. It is a good property and am sure if I hold it will appreciate in the future. But would hate to loose the $150,000 tax free gain and then have to pay tax on it if sold further down the track. This gain has been in the last 6 years and I really doubt it will be the same in the next 6 years or even 10.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
