I might missed something about depreciation.The new house will be on depreciation schedule at 2.5% per year when built. How many I have to count?suppose the old house in area 340Kmy new house cost is 250Kthe block of land is 150KThe above numbers are constants. using your formula I have the following:250-(25 years x 2.5%)=93KWhat does it mean in…[Read more]

I have just received a phone call from my lender who has done a free home valuation for me. the value is now increased by almost 20%, and the chest is opening up wider now.thanks

Thanks for this, will try and let you know about it.

Hello Hydra,I actually chatted with the lender yesterday and what I'm hearing is that if I prepare my valuation the bank can take it but will send their own valuer regardless. So, they would most definetely rely on thier own report. However, the bank is reluctant to sent the one without me engaging first. They are happy with what thier system…[Read more]

Thanks fellows for your valuable heads up. I like the idea of getting some more information from a lender (bank) about their valuers. I hope it would help.Regarding the properties in my neighbourhood. I see many older houses on smaller blocks being sold at prices higher then our build costs. I think 15% increase from bank's value would be…[Read more]