SMSF Direct Property
Certified Practising Valuers; three (3) yearly cycles at a minimum as per guidelines. Both current market rental and current market value of all forms of freehold real estate property.
Buyer’s agent. Our focus is to provide the buyer with the best property solutions inclusive of acquisition price. See our guarantee.
Highly educated, professional and years of experience. Property advisory that reduces risk of transaction and increases potential wealth through property investment. We are the leading experts in SMSF Direct Property.
FVG Property specialty skills for both Commercial and Residential property include:
- Helping parties acquire real estate property to enable wealth creation
- Advice, strategy on existing and future acquisitions inclusive of Risk and SWOT analysis
- Asset/portfolio management providing a bundle of services
- Portfolio modelling for future acquisitions
- Property Insurance and Rental Management
- We understand the complexities of real estate and are active in managing property/asset portfolios
Why SMSF property investments must be revalued?
There are four main reasons why SMSF trustees need to revalue any real estate investments held by their fund:
when a SMSF commences a pension, the value of the underlying investments that support that pension need to be determined to accurately calculate the minimum and maximum pension amounts.
it is essential for SMSF members and trustees to be able to measure the performance of their investments – which needs to include any change in the valuation of real property.
SMSFs are limited to having 5% of their assets invested into ‘in-house’ assets. For this ratio to be accurately measured, all investments of the fund must be valued at fair market value.
the current Labor government has slated a reduction in the current $50,000 concessional (tax deductible) contribution cap to a measely $25,000 for persons over the age of 50 where their member balance exceeds $500,000. To accurate determine whether the lower cap will apply, all assets of the SMSF need to be accurately valued at market value.
Who can undertake the valuation?
When it comes to obtaining the actual valuation of a property, it does not always needs to be done by an independent valuer. It is not so much who does the valuation – rather how the valuation is performed which is the key factor in determining whether the valuation can be relied upon by the auditor or not. Valuations can be conducted by:
From an auditors perspective, something from an independent party holds a lot more weight than something from a trustee of a SMSF.
The method of determining market value – the ‘how’ is significantly more important than who conducts the valuation. The methodology must be objective, based on a reasonable process, take into account all relevant factors and be able to be explained to a third party.
For example, when determining the valuation of property, the following factors would be considered:
- The value of similar properties
- How much was paid for the property
- Valuations for council rates purposes
- Independent appraisals
- Rental yield