PROPERTY NEWS - Louis van Rooyen, commercial and industrial broker with Rawson Commercial Somerset West, says some may view an annual valuation of a commercial property as an unnecessary exercise and expense. "However, if done correctly, valuations can prove to be a fantastic asset in a business' arsenal of information," he says.
Van Rooyen gives five immediate benefits to obtaining an up to date commercial property valuation on a regular basis:
Obtaining finance
When one’s property portfolio requires additional bank funding, either to purchase a new property or to raise capital for deposits, maintenance, development etcetera, the bank loan will need to be secured against a specific asset either registered in one’s personal or business name.
Banks will appoint their own professional valuer to confirm the value of a commercial property, with the cost of the valuation being carried by the customer seeking funding from the bank. This only happens when the loan is approved and, it should be noted that, many clients fail to keep abreast of what the growth in their property’s value has been.
“As the value of the property grows, the risk to the bank decreases and clients are able to renegotiate their lending terms or possibly apply for additional funding,” says Van Rooyen. “Using a reputable commercial property group for an estimated market value will greatly assist in this regard.”
Obtaining finance
When one’s property portfolio requires additional bank funding, either to purchase a new property or to raise capital for deposits, maintenance, development etcetera, the bank loan will need to be secured against a specific asset either registered in one’s personal or business name.
Banks will appoint their own professional valuer to confirm the value of a commercial property, with the cost of the valuation being carried by the customer seeking funding from the bank. This only happens when the loan is approved and, it should be noted that, many clients fail to keep abreast of what the growth in their property’s value has been.
“As the value of the property grows, the risk to the bank decreases and clients are able to renegotiate their lending terms or possibly apply for additional funding,” says Van Rooyen. “Using a reputable commercial property group for an estimated market value will greatly assist in this regard.”
