Why consider valuing commercial property?
If you have ever bought or sold a property in the past, you might know how important valuation is to complete the transaction. When it comes to commercial property, some may look at this as an unnecessary exercise and expense. But if properly done, it can prove to be a great asset of business information. You just simply need to contact a reliable commercial property valuer of Brisbane and rest will be taken care of by them.
But, if you are still skeptical about it, the below benefits of valuing commercial property will help you to strengthen your decision:
● Obtaining finance
In case you are looking for additional bank funding either to buy a new property, maintenance or raise capital, you can get your loan secured against this commercial property. But, how you are supposed to do that without knowing the correct valuation of your property? Moreover, with the increase in your property’s value, you can renegotiate or apply for the additional funds.
● Lease repairs
When the lease agreement gets over, the landlord will claim for damages based on the agreement. At such time comparing the valuation done at the start of the lease and at the end of it can help with relevant information for determining the damages suffered by the relevant parties.
● Ascertain the best use of a property
Determining the best use of the property can bring the best selling price. For instance, a residential property if rezoned in a commercial building can gain better market value than selling the property to potential residential buyers. So, valuation is required to study the market value of the property.
● Accounting reasons
In accounting, the cost of the building (excluding the land value) is depreciating thereby having a tax deduction for that legal entity. So, to make sure that the depreciation is done correctly, the current market value of the property should be known and reflected in the annual financials. So, you will have the proper tax depreciation for Brisbane laws.
Summing up:
An up-to-date valuation provides you confidence in any property matters. Moreover, it saves your time and money in financial dealing and taxation. The above pointers have given you better insight into why you need to get a valuation for commercial property. And, if you are planning to do so, contact the best and reliable company for the job.
