Hello all,I am a beginner in property investing and I desperately need an advice. I was wondering if anyone can kindly help me.
Let me explain my scenario, I am about to purchase my first IP. I found one property that fulfilled the 11 secs rule. Its 130,000$ and rental income of $290/w. I’ve done my due dilligence and everything seems to look reasonably good (tenants, building, etc). The population of the town is 20,000. Its a mining town.
Lastly, I had a registered property valuer to value my propery. The problem is:
The result of the valuation was $110,000. $20,000 less than the offered price. The owner did not want to change his stand at all. Not even with the presentation of property valuation paper.My question is: Should I go ahead with the purchase? Or should I not?
Note: The capital growth in this area is knowned to be very poor.
For those who are willing to help me: Big Thank you in advance.[
]Howdy,
This is unfortunately fairly common in regional communities. The first thing I would be doing is find out who the approved valuers are for the lender that you are going with (brokers can do this for you if the bank is less than forthcoming) and get a second valuation because on the numbers you’ve provided this seems like a tough call. Also get hold of the valuers report and see whether it’s been downgraded for a particular reason eg roof about to collapse etc.
Good luck and keep pushing!!
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Mel
[email protected]Mining town?? I would be very weary, especially if the valuation is 15% below asking price and capital gains prospects are limited.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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