SOME VALUATION CONSIDERATIONS DURING LOCKDOWN

If you're anything like me, you would have used this lockdown period to spring-clean your "house". This may mean cleaning out the garage and/or managing the "admin" that we so often neglect 'for later'. Ideally, this is a prime opportunity to consider some essential valuation considerations, of fixed and moveable assets, as an important aspect of one's "admin."

Insurance valuations: The sum for which your (fixed and moveable) property is insured should be regularly reviewed to ensure that you are adequately covered in the event of an insurable loss/disaster. This could apply to residential or commercial/industrial investment property. The premium is based on your sum insured and insurers penalise clients for being "under" insured when it comes to paying out a claim; known as 'applying average'.

Being "over" insured translates into unnecessarily high premiums. Both of these situations can be avoided by having a professional insurance valuation completed at regular intervals, being the legislated three yearly cycle in the case of a body corporate/community scheme and every three to five years in other cases.

Estate planning purposes: This could be the opportunity to consider the value of your property portfolio and the 'estate duty' such portfolio would attract. While this topic can be an uncomfortable one, planning/budgeting for the financial impact of estate duty on your estate will have on its beneficiaries is essential. By obtaining up to date market valuations of your property assets, you'll be able to make informed decisions.

Investment properties:  With the substantial recent interest rate cuts, the lowest rates in more than 50 years, there may be opportunities for first-time buyers or seasoned property investors to access finance at reduced rates of borrowing. When considering such significant purchases, you would be doing well to request the professional advice of one of our registered valuers.

For these and any other valuation requirements you may have, please contact our valuations division on pauline@steer.co.za for now, although we always welcome a phone call. Our office no is (021 4261026) from where you'll be directed to us remotely.

Please stay healthy and use this time effectively.