Banks and financial institutions get asset valuations done to get a clear understanding of the collateral value that is being pledged against the loans, enabling them to take lending decisions thereupon & we have helped drive lending and investment decisions by providing independent, credible, and professional valuation services.
Fair market Value is the price a product would sell for on the open market assuming that both buyer and seller are reasonably knowledgeable about the asset, are behaving in their own best interests, are free of undue pressure, and are given a reasonable time period for completing the transaction.
Visa valuation is a formal valuation report with current fair market value on your properties or other physical assets to support and assists your application with Department of immigration and Citizenship. It is important to prove that your assets is valuable. It supports your application for obtaining a visa.
The concept of indexation is applicable in the case of LTCG only. Indexation is done to incorporate the time value of money (adjusting the inflation factor) while computing the gains so as to make the computation just and fair. Indexation is done by using Cost Inflation Index (CII) &Valuations are normally required to be done under a particular act for a specific purpose as of a specific date.
If the asset gets lost earlier, being destroyed or made non-functional, through an accident or other unfortunate event, the owner and those deriving benefits there from suffer. Such possible occurrences are called perils, like fire, earthquake, flood, break down, etc. Insured parties normally being their valuation reports up-to-date at frequent intervals, if the property is over insured, a higher premium is paid unnecessarily. On the other hand, if the property is underinsured, then actual losses cannot be recovered.
In case of leasehold property, ownership rights are divided between two parties viz. Lessor & Lessee. Hence we may say that it amounts to duel ownership. Value of their respective rights will depend on lease terms, conditions and covenants. Valuation in such cases would include present value, estimated future life, annual maintenance costs, premium amount and rental value of the property.