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So if I want a valuation, I should tell them its because my husband left me or my parents died then it will come back higher???? What the?
Thanks guys. Let's not even begin to discuss bank valuations at the moment!!!
I am still waiting on their reply. Shall let you know how it goes.
Think I might start private messaging the people who actually assist with their comments and read your posts properly.
@paullie – re read the post and then make a comment if you feel you can contribute in a positive way. I said there were 2 issues with servicability and 1 of them is that CBA is only taking into account $210 a week rent of $300 and then went on to say they have changed their lending criteria and only assess 60% of rental income. This was only one very SMALL part of the overall issue and I dont need advice on the first issue. I was basically wanting to know why CBA would only take into account 60% of my rental income. Just so there's no more confusion, the first issue is that my previous PPOR i have recently moved out of has been sold but has not settled as yet, and it is a massive dent in our servicability – so we have sorted a 'subject to settlement' of that loan deal. Cash is certainly not an issue.
@shape – I dont have credit cards, but thanks for the assumption
So turns out CBA's lending policy no longer suits me as an investor. Had discussions with Broker and we have a plan to get this purchase through and then we will head elsewhere to another bank who takes into account 80% of rental income, not a significantly lower amount…
Interesting what you find out from your broker when they have spent hours on the phone to the State Manager trying to figure out why a small amount and simple application for a loan has turned out to be rather difficult.
Again, another lesson learnt.
this is the first time I have used a 'specialist investment broker' and we've had so many issues. I went straight to CBA the last 3 times and not a worry in the world. Just seems so strange to me. I cant work it all out
my main issue is how they can decide to assess the rental income at $210 and not the $300 we are actually getting citing the reason of '$210 is market rent' this is why i am so annoyed.
how can it be market rent if we are getting $300 a week???
Ok so we have the contract, it is 2 houses, 2 titles, sold in 1 line.
The building report shows no fire wall seperating the 2….
Have I hit a mini jackpot here now that I can sell them off individually or could I be missing something? seems to good to be true….
we've had early access previously on a property – 2 weeks – so we could renovate a property, was tough getting it past vendor's solicitor but it worked.
A good option also is to ask for an extended settlement with early access – I have currently got an offer on a property that i have requested for a 27th April settlement date, approx 9 weeks, but with early access from 6 weeks on. This gives us 3 weeks to renovate before holding costs kick in and as the banks are used to a 6 week settlement period normally, we are guaranteed to have the 100% go ahead and know the bank matters are covered before we go in. We send a copy of insurance policy to solicitors vendor to cover legalities. We do our own renovations except for flooring specialists so public liability issues are limited….
The median house price is $200000 approx. We got both for $182000.
Hi Jamie, I have my fingers crossed that I am onto a real winner later on down the track
First and foremost the cash flow is brilliant 14.8% after spending approx $12k on renovations for each house. ( we do it ourselves so don't pay labour costs) and its in a town experiencing good growth with rental yields having recently gone through the roof also. This is my new favourite town! Plus when done, should have made 80% equity gain, simply from a lazy vendor who didnt want to touch the 1950's decor and cracks in walls and didnt want to hold onto it and wait for a high offer, skyrocketing rents and my countless hours of research then hard ball negotiating.
I love property!
Its 2 seperate houses. They come up as seperate numbers on RP data, have their own blocks but have been sold as one, there is 1 contract. there is 1 wall that joins them
2 x 3 bedroom houses. 1 is currently vacant
So Andrew are you saying that it would be favourable if they did the same for us, compared ours with stand alone houses?
So they would compare stand alone 3 bedders to ours etc?I have looked at unrenovated comparables, 3 bed , 1 bath, stand alone houses within 500metres of ours and they are going for $200k each but they have a garage or carport.
Ours have a carport behind a gate at the back of the block so thinking that will detract a little.
I think a $170k each valaution would be fair. considering ours would be completely renovated…
and i have since found out, its not classed as a duplex, its just 2 houses on one title, each with their own street number and block.I think we will stick with CBA but just have less funds to withdraw for next project. It just means our reno budget for next project comes down a little for the time being.
I guess it is ok in one way, we can still draw money out for next IP, but we have more room to move in the future if the property could sell for $210k then in 12 months time or so, CBA may recognise the growth in our area and we may get a reval of $220k or more in the near future purely because they have underestimated its current worth.
So we can still progess with next IP, just with less funds, but have more equity to use later if correct valuation is done.
Welcome to the forums. I hope you learn everything you need to by using these forums. I know i do!
Ok so CBA have left the reval at $185k even after the 2nd dispute.
Will ask my broker about ANZ costs etc. See if it is worth it or not. Such a shame really!
update on the saga, got a reval from ANZ for free, no application required as part of one of their packages – came back today $210k which is spot on. How could they be so different?
And to refer back to previous comments, we have no put any applications in at all. The CBA valuation we paid for upfront before submitting application to ensure we had enough equity so no damage to credit have been incurred at all.
our broker has sent this reval to CBA with a second dispute to see what they say. We would like to stick with CBA so we are hoping this dispute will go our way. $25k difference is rather large considering the actual value of the property. its more than a 10% difference.
What an interesting world property investing is. I am learning so much!
my house in chester street survived. I wouldnt buy in North moree due to flooding. Make sure you check if the property you are looking at is flood free. or 'on the high' side. Agents should be able to tell you that.
There are good and not so good pockets of the Mt Druitt area. I have a property in Hebersham. Bought it for $230k November 2010 – it is a small 4 bedder. We repainted, got new flooring and did a big make over of the backyard and the rent appraisal went forom $330 a week to the $380 that we got from day 1. Had a tenant move in day after settlement. She is a single mum with 4 kids and our house is kept in an immaculate condition. She looks after it and although she has constantly been a week behind in rent, we think that is fine because our house looks great. We dont want her to leave because i think it would be worse to gamble with getting a new tenant who may always be ahead in rent but could very well have a drug lab happening in the garage.
There are good and bad in all areas and whilst these areas havea stigma attached, there are some hard working individuals and families who live there who simply need a place to live.
There are parts of lethbridge park i wouldnt buy in and i also wouldnt buy in emerton. I spent the first 4 years of my life in EMerton and my mum worked at the TAB there for 15 years and I dont like the area at all.
hebersham is closer to Plumpton and Oakhurst which are decent areas with more home owners and generally 'better areas'. Hebersham is closer to the M7 and large shopping centre is being built there and the median house price is about $40k higher than Shalvey, lethbridge park etc.
I would recommend you view the property before you buy in these areas as you could be buying across the road from an oval or reserve where at night the youth come out to play and you wouldnt walk around at night without a bullet proof vest.
And yes, I have lived there, have family that live there and i am not overexaggerated. Bored youth and high drug and alcohol intake does not make for a safe environment after dark.
Have fun with your search!
OK… RESULTS ARE IN. VALUATION HAS STAYED AT 185K. I AM WAITING ON THE EMAIL SO I CAN SEE THEIR COMMENTS. YES WE USED A BROKER AND THIS WAS DONE BY CBA'S VALUER – WHOEVER THAT WAS. THINKING WE WILL DISCUSS STRATEGY WITH BROKER AND POSSIBLY END UP USING ANOTHER LENDER. LAST TIME WE USED CBA WE SUBMITTED APPRAISALS AND RECENT DATA AND THEY MATCHED THE AMOUNT OUR AGENT GAVE THEM. THIS TIME THEY HAVE GOT IT VERY WRONG WHICH IS UNFORTUNATE AS I WILL PROBABLY GO ELSEWHERE NOW. IRRITATES ME THAT THIS IS HALTING MY NEXT PURCHASE. THE RECENT SALES DATA THEY ARE USING IS FROM OCTOBER, OUR AGENT SUBMITTED NOV AND DEC DATA AND THERE HAS BEEN A SMALL INCREASE IN VALUES IN THIS TOWN AND HIGH INVESTOR ACTIVITY COUPLED WITH INFLUX OF WORKERS AND I AM THINKING MAYBE THE FACT THAT THE INCREASE IN VALUE IS SO RECENT THAT ITS NOT REFLECTED OR RECOGNISED AS YET. I DONT KNOW. I AM AT A LOSS WITH THIS ONE
WE SHOULD FIND OUT RESULT TODAY. ALL THE EVIDENCE FROM AGENTS WAS SUPPLIED FOR THE DISPUTE SO I CAN ONLY HOPE THEY GET IT RIGT. EVEN IF THEY CAME IN 10% UNDER THE AGENTS OPINION AT 215K I WOULD BE MUCH HAPPIER. WILL LET YOU KNOW THE OUTCOME. SHOULD I USE A DIFFERENT LENDER IF THEY DECIDE TO KEEP THE VALUATION AT 185K AND HOPE FOR A MORE ACCURATE VALUATION SECOND TIME ROUND?
