Your Local Asset Valuation Company – We Value Your Assests
Serving Gauteng and Across South Africa
Do You Need a Professional Asset Valuation Company?
What are your assets? Assets include various items but, from a valuation point of view, we assist with the ‘underlying’ assets of a company, which include land & buildings, plant & machinery and other movable assets.
Determining the value of these assets is a requirement that all companies would require at some point in time.
Objectives Of A Valuation
While the primary reason for requesting a valuation can vary, at The Property Partnership East Rand we discuss your requirements with you and advise on the best approach. Following this, we then send you a free no obligation quotation.
Valuations are all essentially about determining the value of an asset at a particular point in time, be it for balance sheet purposes, sale, municipal valuation objections, estate duty or other purpose.
Whatever the purpose, a fair, unbiased and accurate value of the assets is a necessary and important aspect of the business.
Our valuation reports are fully motivated and always try to meet the requirements and timing of the client. Our reports assist the client in understanding the market and current property environment.
Asset Valuation Methods
Given the above, it is clear that determining the value of the property requires knowledge, market information and skill. Various valuation methods exist, but selecting the correct method needs to be done in the manner in which the market prices and purchases properties. We have a thorough understanding of all methods; and a valuation sometimes requires a valuer to employ two methods.
The most commonly used methods are:
- Comparative Sales Approach – this method compares the subject property with recent sales to determine a value (i.e. residential).
- Income Approach – this method is used for income producing properties whereby the net income that the property could achieve is directly related to the value of the property. Other variations under this method include Hard Core/Top Slice, Term & Reversion and Discounted Cash Flow. Further, we then compare the resultant value under this method with recent sales transactions.
- Cost Approach – This method is traditionally reserved for specialised properties and applies a depreciated value to the buildings based on their age and functional and economic obsolescence plus land value (i.e. Brewery).
Other variations of the above valuation methods including residual method, discounted cash flow, insurance value, etc.
The Importance Of The Valuation Of Assets
While it is immediately obvious to undertake a valuation when purchasing/selling a property, other reasons include:
- Balance Sheet valuations, thereby ensuring that the company’s assets are correctly stated.
- Insurance valuations, to check that you are not under-insured should you suffer a loss, otherwise the insurer may apply averaging.
With ever increasing building costs and the new requirement for body corporates/sectional title schemes to undertake an insurance valuation of their complex, this issue has become increasingly important.
- The municipal value of a property is reviewed by the Council every 4 – 5 years and property owners are only given a limited period in which to object. It is extremely important to get the correct municipal valuation on a property and to lodge an objection should this not be market related, failing which you could be liable for increased rates which puts pressure on the landlord/ tenant and can have a negative impact on the value of the property.
- A rent review is an important aspect often overlooked by landlords and tenants. Securing premises at an incorrect rent, or renewing a lease on a similar basis, can have an effect on the property/business. The Property Partnership East Rand assists clients in determining a fair market related rental and escalation rate motivated with recent lease transactions.
See more on our ‘Valuation Services’ tab
- Office Property
- Retail Property
- Industrial Property
- Vacant & Development Land
- Apartment Blocks
PLANT AND EQUIPMENT VALUATIONS
- Manufacturing Plant
- Process & Mining Plant
- Transport Systems
- I.T. Systems
- Furniture & Contents
- Reconciliation / Input Data
- Forensic Tracing / Litigation
- Planned Maintenance Registers
- Asset Marking / Bar Coding