WHY YOU SHOULD (ALMOST) ALWAYS GET CHATTELS VALUED

Jul 17, 2017

Why is a chattels valuation necessary?

furniture

Why you should always get chattels valued: In exploring the necessity of a chattels valuation, it’s crucial to delve into the intricacies of property assessment and taxation. While standard valuations typically assign a modest value to chattels, often ranging from $10,000 to $15,000, they frequently overlook numerous depreciable items integral to the property’s functionality and value.

Consider essential components such as driveways, fences, decks, pathways, hot water cylinders, letterboxes, and garage door motors. These elements, while often taken for granted, significantly contribute to the overall worth of a property. Yet, they are commonly omitted or undervalued in traditional valuations, potentially resulting in a considerable discrepancy in the property’s assessed value.

A chattels-specific valuation, however, offers a comprehensive assessment that accounts for these often overlooked assets. For instance, such a valuation may appraise the chattels of a new home at $45,000 to $50,000 or those of a property constructed in the 1980s at $25,000 to $30,000. Even a conservative valuation of $30,000 can yield significant benefits, potentially translating to a tax refund of approximately $10,000.

The importance of obtaining a chattels valuation becomes evident when considering the implications for taxation. A higher chattels value enables property owners to claim greater depreciation, thereby reducing their tax liabilities or potentially securing larger tax refunds. Consequently, investing in a thorough chattels valuation can yield substantial financial advantages over time.

Are there any exceptions?

Despite the potential benefits, some may question the necessity of a chattels valuation, particularly in specific scenarios. For example, in instances where a property is antiquated and devoid of renovations, or if the homeowner possesses a meticulously detailed inventory of chattels with corresponding prices, the expense of a valuation may seem unwarranted. Or if you are about to sell the property, it may be inadvisable to value the chattels due to depreciation clawback. However, such circumstances are often exceptions rather than the norm, as most properties could benefit from a comprehensive valuation to maximize their financial potential.

In conclusion, while there may be exceptions to the rule, the benefits of obtaining a chattels valuation typically outweigh the costs. Whether it’s to accurately assess the value of essential property assets or to leverage tax advantages through depreciation claims, investing in a thorough valuation can prove advantageous for property owners seeking to optimize their financial position.

​What will it cost and who does this?

We know of only one firm: ValuIt. Visit their website www.valuit.co.nz or call 0508 482 583 to book a valuation. Please note, we receive no financial incentive or otherwise for recommending them. However, we encourage you to do this without delay, as they are very busy and it can often be 2-3 weeks before someone can get to see your property.

Further reading


Depreciation Clawback and Your Rental Property
Depreciation of Chattels in Your Rental Investment Property
Valuation of Chattels – Why Necessary

 

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