Chattels Valuation on a Leasehold Property

[Pongo]

I have just purchased my first investment property which happens to be on a cross-leased section.

I was disappointed to discover that Valuit would not perform a valuation on the property without a registered valuation being performed first due to the section being leasehold.

I don't understand how this is so different from freehold property especially when we are actually talking about chattels here!

There was a registered valuation done on the property back in March 04, but this was not recent enough.

I am thinking that given the uncertainty about depreciation rates, etc, and the fact that I'll have to fork out for TWO separate valuations to be done that I should not bother with a chattels valuation at all.

Your feedback on this would be appreciated. Thanks!

[nzpropertyindex]

Hi Pongo

Just a couple of quick questions as your query is a little ambiguous in areas.

1) You asked only for a chattels valuation for depreciation purposes? Not for a registered valuation/other type of valuation for any other purpose?

2)You have only JUST purchased this property? This month? Last month?

[cube]

The chattels valuation apportions the 'Improvements' (i.e. the house,garage,shed etc) amount of the overall value to the building, chattels etc.

Without a land value for your part of the lease, it is not possible to say what proportion of the total cost is land, and which is improvements.

Why Valuit can't do that off the rating valuation, apportioned pro-rata to the land area, I don't know

cube

[Pongo]

Chattels Valuation on Cross Leased Property

[quote="nzpropertyindex"]Hi Pongo

Just a couple of quick questions as your query is a little ambiguous in areas.

1) You asked only for a chattels valuation for depreciation purposes? Not for a registered valuation/other type of valuation for any other purpose?
I asked only for a chattels valuation for depreciation purposes.


2)You have only JUST purchased this property? This month? Last month? The deal went unconditional last week and settlement is a couple of weeks away.

[Warren]

Pongo

Please see the link below to another post regarding the Freehold v Leasehold issue.

http://www.propertytalk.co.nz/postp18939.html#18939

As you will appreciate we need to do the valuation correctly as, if you are ever audited by the IRD, we need to ensure that the "i"'s have been dotted and the "t"'s crossed to reduce your risk.

We suggest that you seek clarification from your accountant about this issue as to how they want it handled. We are aware that many accountants may not be aware of this issue. If this is the case we are more then happy to discuss the issues with your accountant or yourself.

Regards