Spring has finally sprung, the birds are going off, grass is growing as fast as the Melbourne property prices. You’re sitting in what is likely your most valuable asset, your home. If you haven’t had your home appraised recently you could be doing yourself a big disservice and possibly exposing yourself to significant risk.
Time to get a market appraisal of your home: Here’s why:
I think we all would like to get a better idea of what our property is worth. We all read the papers and would love to really know if our house has gone up too.
If not out of curiosity then understand the financial risk. It’s important to establish the replacement cost for insurance. Mike and Jeanette Smith tell their story here of being underinsured, it could ruin you financially.
Determine if further improvements will add value or overcapitalise your property. Sometimes renovations or improvements can cost you more than the value you add to the property. In this case you might consider it would be better to leave the property as it is, sell and buy a property more suited to your needs or you might look for an alternative strategy to get the same outcome for less cost.
It’s your Investment
Your property whether it is your home or is used as an investment property should be considered a major investment. You might be considering whether it is worth moving but retaining the property as an investment. So an appraisal will help you establish a property value and what it might rent for as an investment. If it is an existing investment it also a good idea to get an appraisal to see if it is being rented too low for the market. It might also be a good time to sell. If you are switching your home to an investment you need to establish a baseline value for capital gains tax in the future. See Australian Tax Office or your accountant for professional advice in this area.
Refinance, Equity Release or Debt Consolidation
Understanding the value of your home can help you decide if refinancing or borrowing further against the home could be practical. Factors you might consider is there equity left in the property now. Your mortgage broker can also assist you to determine if the cost to refinance or release equity to pay out other loans will be viable.
You might want to release equity for other reasons such as further property investment, personal use, education or to invest in a business.
I’d suggest having an annual review done by a local agent. That way you are on top of the market and can make sure you make necessary changes to insurance cover or home loan when required. You might even find it is worth considering selling to upsize, downsize or a change in location.
Order an appraisal now, just contact me and I’ll co-ordinate it for you with a good agent in your area: just call me on 0413 119 548
or email on firstname.lastname@example.org or book a time for me to contact you by clicking the box below: