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SMSF Direct Property

SMSF Property Valuation Services Melbourne

SMSF Property Valuation Services Melbourne

SMSF Direct Property

Due to the increased popularity in Self Managed Superannuation Funds (SMSF) with direct property, FVG Property now specialises in various services within this specific market segment including SMSF Property Valuations and buyers agents. These may be utilised individually or as a whole.

FVG Property caters for SMSF’s currently holding or acquiring in the future, either Commercial or Residential real estate property. We are one of the best providers of property valuation services in Melbourne and have a team of qualified property valuers in Melbourne.

Services offered include:

  • Current.Market.Valuations
  • Advocacy
  • Advisory
  • Current Market Value
  • Special Auditor
  • Pension Phase
3

Current.Market.Valuations

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.

Advocacy

Buyer’s agent. Our focus is to provide the buyer with the best property solutions inclusive of acquisition price. See our guarantee.

Advisory

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
Current Market Value

Current Market Value

The most appropriate level of value is of course the current market value at a given point of time. A valuation by a Certified Practising Valuer at a trustee’s disposal can be informal or formal, with a logical basis being via a Certified Practising Valuer of whom is independent and importantly provides you with a legal document.

Special Auditor

In most cases an Auditor will often insist that they sight an independent property valuation that is no greater than 3 years old. Accordingly, many of our clients have requested a three (3) yearly cycle. In some instances, even annually.

Pension Phase

The valuation of real estate property becomes increasingly dependent, when the fund is paying a pension. Simply, the value of the property has a direct affect on the amount that can be withdrawn.

A valuation by a Certified Practising Valuer provides the ideal mechanism to provide a true and accurate legal document, supportable by guidelines of the Australian Property Institute, providing a degree of satisfaction that pension payments are suitable.

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:

Pensions

Pensions

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.

Performance

Performance

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.

In-house Assets

In-house Assets

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.

Contribution Caps

Contribution Caps

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.

The general rule of thumb used by the majority of SMSF auditors is that property investments held by a SMSF must be valued at least every three years.There are some situations where property held by a SMSF must be revalued on a more frequent basis:
  • When a pension is commenced, a valuation from within 12 months prior to the commencement of the pension must be used
  • When the auditor believes that the valuation used in the accounts is either too high or too low
  • Where the SMSF has in-house assets and the auditor needs to ensure that the 5% in-house asset ratio has not been exceeded
  • The most important (and most common) exception of the above three is when a pension is commenced.
Who can undertake the valuation?

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:

  • Independent valuers
  • Real estate agents
  • Other unqualified persons (including trustees of the fund)

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