howdy
say ive reno’d a house i bought for 50k.
say i spent 10k on reno
say i wanna get some ‘instant capital gains” so i can use that for leverage into another property and so on…
what is the best plan of action to get your house re-valued after a reno?
would some revalue it more than others?
or does the bank from whom you are lending have a specific “valuer”?
pleeease help me dudes.dags
the hippy investorG’day Hippy…
All lenders have their own panel of valuers.
You would not be able to get your own valuer .
“as you may have them in your pocket”.Furthermore your lender is unlikely to redo your deal in under 6-12 months.
Billfromoz
Get the property revalued and them approach another lender with your new deal using the equity in the reno property as deposit??
G’day…
Another lender is fine. BUT they will appoint their own valuer. Even if you had your own “sworn” valuation the new lender will value it with one of their own panel…and you pay for that.
Also the costs of refinancing must be considered…penalties etc.
If above is acceptable and your confident that the increase in value justifies the cost…then YES refinance.
Billfromoz
Thanks guys.
That was a good point regarding another lender altogether,
is it possible to leverage equity from the capital gains in this scenario?
would the original lender be in approvance of this?
And also is there a way that you dont have to wait 6-12 months to revalue and then use the “instant equity” youve established from a reno?
If i finished my basic reno in one month and had it ready to go (tenanted etc)and revalued at more than the original buying price, it would be a pain in the proverbial to wait a whole year before i could acces that equity.(so i could buy more property)
Is this because of fluctuating interest rates?
Anyone got some insight on this scenario?
suerely must be a loophole somewhere!yay for loopholes!
dags
the hippy investorAt this price range some banks don’t use valuers. I can relate a story of someone I know who prepares a folder of all comparable sales and other information (which supports his valuation) and convinces his lender of equity rises with that!
If the lender wants to help find the equity to finance the next deal (and the next loan) then they can be quite supportive of higher valuations.
When you appoint a broker make sure you tell him your plans and don’t just send him off looking for the cheapest rate as most do.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi dags,,
I also know someone who uses the same system that Simon talks about.
He buys properties, does a reno, then has the place re-valued to use the equity as deposit on new purchase.
He does a lot of ground work, sets up a whole folio of similar houses that have sold in the area and other statistics to support his claim.
He has this all ready for when the valuer comes to do an internal valuation.
It seems to work for him, he now has many houses. They are all inner suburban houses though, that’s gotta be a huge debt.Keep smiling,
Sue [
]Be careful not step on the flowers when you’re looking at the stars
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