Property valuations for portfolio reviews

Matching the report type to the decision

The question to ask is what the number is for. If it's informing your own decisions — tracking equity, reviewing performance, deciding what to sell — a desktop valuation is usually sufficient and can be produced quickly across many addresses.

If the figure is going to a third party who will act on it, the standard rises. Lending, auditors, disputes and tax matters generally need an inspection, and for legal and tax purposes a full internal inspection.

• Desktop — internal reporting, equity tracking, preliminary decisions
• Kerbside — lending decisions and portfolio reviews where access is impractical
• Full inspection — anything going to a court, the ATO or the State Revenue Office

Value everything at the same date

A portfolio position assembled from valuations six months apart isn't a position, it's an average of several different markets. Where you're comparing assets, tracking performance year on year, or presenting a total to a lender or auditor, have every property assessed as at a common date.

The same applies to method. Mixing a full inspection on one asset with an automated estimate on another makes the comparison between them meaningless.

Reviewing equity and release capacity

The most common reason investors order a portfolio review is to work out how much equity is genuinely available before approaching a lender. Knowing which properties have moved and which haven't tells you which one to borrow against — and prevents an application built on an assumption the bank's valuer won't share.

What we need to start

A list of addresses, the purpose of the review, and the date you want them assessed at. For tenanted properties, current lease details help. If the portfolio sits in a trust or self-managed super fund, check your accountant's or auditor's requirements before ordering — they may specify the type of valuation they'll accept.