Once logged-in to their dashboard of investments, clients can select/toggle between two methods of property valuation:
Every March, we commission independent valuations for all properties in our portfolio from Allsop, a market-leading, RICS-approved surveyor.
For residential properties, Allsop reports two valuation methods, both of which are disclosed in their reports on our site for each property:
- Vacant Possession Value (VPV): assumes each unit within a residential block is sold individually, with vacant possession (i.e. no tenant in place).
- Investment Value (IV): assumes a block of residential units is sold in a single transaction, to a single investor; these transactions attract a discount to VPV, because owner-occupiers are excluded and investors seek discounts for buying in bulk.
VPV is typically 10-15% higher than IV.
Since inception, we have shown clients' returns based on IV for almost all residential properties and that remains a prudent basis of valuation.
However, now that we are selling units individually with vacant possession, VPV is a highly relevant method for clients to understand the value of their investments.
Student and Commercial properties within the portfolio do not have a VPV, as they cannot be sold as individual units.
Please note, we will continue to charge our AUM fee based on the lower Investment Value.
How to view your portfolio valuations:
- Login to your dashboard
- Toggle between these two valuations
- View your portfolio performance for each of these valuation methods
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