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When is it necessary to carry out property evaluation?

Discussion in 'Real Estate' started by ShelM, 17th Apr, 2012.

  1. ShelM

    ShelM New Member

    17th Apr, 2012
    Perth WA
    Hi guys,

    I have a question in mind for a long time, hope someone can clarify it for me.

    I have had a property for 4 years now, I have rented it out after the initial purchase for 3 years and have since moved in and started the renovation. I was thinking of getting a evaluation done but wasn't sure whether it was necessary before the renovation started. I haven't finished renovation (40% done) so I guess I could still get a evaluation done now if it is the best thing to do.

    I understand that getting an evaluation done before it's rented out again is definitely beneficial in order to avoid the capital gain, but whether or not it is a good idea to get it done now I am not too sure.

    Could someone please advise?

    Thank you
  2. Terryw

    Terryw Well-Known Member

    9th Jun, 2006
    You are probably think of getting a valuation done for tax purposes?

    Because it was an investment property first CG will be worked out on a time basis when you sell:

    CG (or Cap loss) x Non main residence days/total days owned

    so no valuation is needed

    see s118-185 ITAA 1997