Does my SMSF Property need to be valued?
The answer is yes. The ATO will be becoming stricter on recording of property values in 2024 and beyond. As it stands, SMSF investors must obtain a valuation every three years for property that is owned in their fund.
How to obtain a valuation for the ATO?
Investors currently have three options to ensure they comply with the ATO’s regulations:
1. Engaging a Certified Practising Valuer (CPV) for a Sworn Valuation.
Pros: Highly accurate, qualified professional.
Cons: Expensive, unnecessary for SMSF property valuation for tax purposes, physical inspection required.
2. Appraisal from local Real Estate Agent.
Pros: Local knowledge, maintain relationship, potential to be free of charge.
Cons: Provides only one method of valuation (ATO need two for commercial properties), physical inspection often required, agents are bothered by these requests.
3. Providing a comprehensive SMSF Property Valuation Report grounded in objective and supportable data that adheres to strict industry standards.
Pros: No inspection required (Australia wide), cost-effective, fastest option, no need to pester real estate agents, covers everything auditors are looking for.
Cons: Access to data, understanding the formula and methodology the ATO need, large cost for database license.
Which is the best way?
Given that it is not mandatory to submit a sworn valuation there is certainly no point in forking out the excessive costs to have one undertaken. Additionally, scheduling a time for an inspection is likely to be inconvenient especially if you do not live near your SMSF property. The same goes for finding a Real Estate Agent, who are unwilling to assist as they know you are only looking to use them in the short term. With that in mind, it is hard to argue with the ease, speed and price-point at which you could order a comprehensive SMSF Property Valuation Report.
Where can I get an SMSF Property Valuation Report?
At the end of the day, you can prepare the report yourself. However, you will need to spend a fair bit of time researching what needs to be in the report and how to calculate the valuation. Moreover, access to the data is certainly not cheap. If your report is not constructed correctly and your data is not deemed appropriate, then your fund may be subject to penalty units. Fortunately, not only do Superfund Property Valuations have the winning formula when it comes to SMSF Property Valuations, we also have a license to Australia’s largest property database. Our reports cover everything that the ATO need to see and guarantee to take the time and stress out of tax time when it comes to your property valuation.
If your accountant has advised you to obtain a valuation for your SMSF property then save yourself the struggle and get in touch with Superfund Property Valuations.
You can visit our website here: https://superfundpropertyvaluations.com/
