Calculating the true present value of the vehicles making up your company’s fleet is not as simple as taking the book value and subtracting an amount for depreciation. And yet this how most companies reflect the value of their fleet on their balance sheets. It’s a guestimate at best, which could prove to have significant [...]
A security (or secured) bond is one that uses a specific asset as a form of collateral against the amount being borrowed. In the event of the borrower defaulting on the loan, the asset is then passed on to the bondholders. A common type of secured loan is a mortgage bond, in which the loan [...]
In October last year, two new Acts relating to the management of Sectional Title developments were promulgated – the Community Services Ombuds Service Act, and the Sectional Title Schemes Management Act (STSMA). The STSMA is primarily concerned with the operational requirements that form part of the management of Body Corporate schemes, and one of the [...]
When selling your home, business or any other asset by auction, establishing a realistic and market-related reserve price is critical in order to ensure the auction proceeds with an acceptable momentum, and that your asset sells for as least as much as you were hoping for. Setting the reserve too high can slow the momentum [...]
At its most basic level, Gross Current Replacement Cost (GCRC) is exactly what it says on the tin – the estimated cost of replacing an asset or property with the same quality of construction and operational utility. It’s commonly used to accurately determine insurance or re-insurance premiums for personal or business assets. It is, however, [...]
The terms used when we talk about what something is worth can get a little confusing for the man in the street. Investors and other business professionals often talk about “Fair Market Value,” which is actually the same as “market value” and refers to what that asset would cost were it to be bought on [...]
For a business to make money, it needs to buy stock at a low price and sell it at a higher price. Service retailers operate under the same principle, except they sell their service for a price that is higher than the cost of providing it. A very general, ballpark value can be calculated by [...]
Most people know that property is a valuable asset to own, which can both generate a healthy income and grow your wealth considerably if you are savvy when it comes to making good decisions about what property to buy. While the thought of investing in an apartment block as a major asset can be overwhelming [...]
So you’ve discovered that it makes good business sense to have an asset register, but before you can wrap your mind around compiling your own comprehensive asset register for your business, let’s unpack what an asset register is, why it’s so important to have one, and how you can get started. What is an Asset [...]
When you decide to have your property valued – for sale, rental determination, insurance, or any other reason – it’s really important you make sure you get a proper property valuation done by a registered, qualified surveyor or valuer. A professional valuation usually comprises three stages – site inspection, research, and preparation of the valuation [...]
Adding property to your investment portfolio is a great way to diversify and create a buffer against possible losses caused by a downturn in the economy. With real estate properties, you have an advantage over paper investments in that you will always have the physical value of the property. The right real estate almost never [...]
Those of us who are interested in buying and selling residential property are likely aware of the Alien and Invasive Species Regulations which were implemented in October 2014. The regulations were put in place to monitor alien fauna and flora in South Africa, to prevent more invasive species coming into the country, and to control [...]
When valuing a business, various economic factors are taken into account in order to arrive at a far market value. These could include applicable taxes and government policies, among others. Valuers use predetermined formulae to help them calculate the value of a business, and a balance sheet provides critical financial information on that business, making [...]
In business valuation terms, the going concern value is the value of a business that is expected to continue generating a positive cash flow for at least the next 12 months. There is a general assumption that the company concern will not want, nor need, to liquidate its assets, nor curtail its scale of operation [...]
Many people feel they only need something valued if they’re getting ready to sell it. But the truth is, it’s useful to know how much your assets are worth for many other reasons too. If you know that your home, for example, is already at the top end of the value scale for your neighbourhood, [...]
