Join our investing community

When is it necessary to carry out property evaluation?

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

  1. ShelM

    ShelM New Member

    Joined:
    17th Apr, 2012
    Posts:
    1
    Location:
    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
    Shel
     
  2. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    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