Hi all,
My girlfriend and I bought our 2nd IP earlier this year with both loans through CBA/Colonial. I was wondering what our chances were of getting the valuation figure of the 2nd property from the lender (CBA/Colonial). Would it be possible or is it something that they’re reluctant to disclose?Cheers
NEWGEN,
My bank *always* tell me what the valuation figure is. I have to say, I reckon (and I hope you can prove me wrong) that the figure the val came at is the same as the price you bought it for. You’d know it’s not less, because they wouldn;t have loaned you the money probably (they don’t like negative equity), and it probably wouldn;t be too much more because they don;t like creating instant equity- they like to make us work for it… and work… and work… [hmm] hehe
I think the sale valuation will be a conservative one. When you get a revaluation, it’s usually when you get a pleasant surprise.
While I doubt the bank will hand you over a copy of the val… I would be very surprised if they don’t give you a figure.
kay henry
Thanks Kay. I’m at the stage where I’m looking at refinancing and possibly buying another property. I bought the property at the end of February this year for $290k. I checked sales history results for the address (4 units in the block) and an identical one next to it sold for $300k in June 03. It was unrenovated and mine is fully renovated (i.e. new kitchen with s.s. appliances, floorboards, light fittings, new bathroom etc). Hopefully the valuation they did to assess our loan came in at a higher figure than our purchase price.
Cheers
NEWGEN,
I’m gonna say a couple of things here- hope it’s ok to do so- just my thoughts/experiences.
The first is that june 2003 was a peak time for the market. The market has currently softened somewhat. Two examples of this: I just bought a place. Had that place been sold in june 2003, it would have been sold for 70k more than I bought it for. The market has changed – and I have been a beneficiary of that (you know, the old “vendor being more realistic” routine).
Another example. I sold an IP 6 months ago. Another IP in the same place is now selling for cheaper than mine, even though it has better views, is on a higher floor etc etc.
Please don’t think I am trying to be dismissive of your hopes- I’m not. I’m just trying to let you know of a couple of personal experiences that might suggest that a much higher $$$ valuation than the other IP that sold in your block might not eventuate (although it might!!)
Others will have different thoughts and tell you stories of great and mysterious CG upon bank valuation. My experience is that bank vals generally always come in at sale price. That’s why, when I see people on here talk about buying at “undervalued” price, I cringe a little bit. The only value you can really look at fiscally (in my opinion) is the bank valuation.
kay henry
Cheers Kay. I was aware that the sale date of the other unit was during the property boom, I’m just being hopeful that’s all [goatee] The area that the property is in is performing pretty well still at the moment. It’s a coastal suburb and my unit is in front of a marina backing onto a beach [inlove]
One more question, when it comes time to refinance, will the potential lender use my current bank’s valuation from late February? Or will they do another one?
Cheers
NEWGEN,
My guess is that the new lender will use a new valuation- you think they are not gonna squeeze every cent out of you? hehe- that’s why they’re called “banks” and not “charities” [biggrin]
I am glad you are [inlove] with your IP. It’s better than it making you feel like this: [puke] Sounds like a great place, NEWGEN- Congratulations on your purchase
)kay henry
Newgen, I believe vals have a ‘life’ of 3 months, so if CBA/Colonial were to accept you attempting to reval within such a short time period, they would need a new val done.
Cheers
MelIf you pay for the valuation, demand a copy. I paid for a valuation on a commercial property (ouch) several months ago and insisted on being sent my copy in the same format and quality as the one the Bank gets, after all, I paid for it.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
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I have never know CBA/Colonial to give out a copy of their valuation[angry2]. Think it is the result of litigation whereby it was found that they were in no way compelled to disclose details of the valuation, as it is for their purposes only and shouldn’t be relied on by anyone else (more complex than that, but a very basic version!!).
Whereas there are plenty of lender who are more than happy to disclose valuations (and if you’re very lucky you might get your hands on a copy)[biggrin].
Cheers
AlanaHi Newgen,
If you used a broker they may well be able to assist with the required information.
If not, ring your loan manager and ask the question. If they are still reluctant then ask them to indicate whether or not, in their opnion, you have sufficient equity to buy another property. Who knows – you don’t ask you won’t know.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Wow.. thanks everybody! I would have responded earlier but I’ve been out shopping with the girlfriend [confused2]
Kay, thanks.. it’s a wonderful place. My girlfriend wants to live in the same suburb when we move down there now! haha It’s in the Holdfast Shores area in Adelaide down at the bay.
melbear, thanks for the info.. I guess getting a valuation done again would be good.. I’ll get to see how the property has appreciated/depreciated.. [blush2]
thecrest, I like your way of thinking! I might give it a shot anyhow, what’s there to lose?
AlanaW, it wouldn’t surprise me if CBA/Colonial wouldn’t disclose the information. I’m looking at refinancing my loans with another lender at the moment.. possibly St. George. I’ve only heard good things about them….. so far.
Derek, I’m embarassed to say I don’t even remember my loan manager’s name. I’m not on good terms with the broker that arranged the refinancing of the loan for us either.. he stuffed a few major things up [glum]
Thanks everybody for all the advice. [thumbsupanim] I’m going to give my loan manager a call tomorrow.. I’m going to find out what the release fees are too if I decide to go with another lender [weird]
Getting a valuation out of CBA is very hard. They even refuse to give the mortgage broker the figure that came in on the valuation.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yeah f#&( CBA
Theyre (u#+$
Go to Evellyn Crawford of Crawford mortgages Melton. Shes good and was the only saving grace in my deals with the banks
Newgen,
Being an ex-cba lender I *may* be able to give you a few hints…
1) They usually keep the same val if it’s under 12 months… but you should be able to request a new one… but like Kay said, be wary it is worth your money
2) CBA policy is to NOT disclose the val, although I used to get around this by telling my client that “I can’t tell you the valuation… but I can tell you what 80% of the valuation is as… and then you can divide that by .8 and you’ll have your valuation” You see they have to tell you the mark (80%) where you start going into LMI (full disclosure of fees). Its a bit stupid really, but in essence we ALWAYS made sure we told them when the val was LOWER then the purchase price (rare, but did happen).
3) Don’t be surprised if the val is the same as the purchase price… seems to be what most valuers do in my experience.
Let me know if you can’t get your hands on the val, I have some contacts and MAY be able to help, but you should really be able to use point 2 to get what you want.
Good luck!
Liz
Liz
Mortgage Lender
Newgen,
I agree that you may find the valuation is purchase price which seems to be the norm when you purchase a property. I suppose when you look at it market price is what the last person paid for the property (which is you).Don’t forget banks will always be more conservative then say real estate agents – banks take into consideration what they may get for it if they had to sell it reasonably quickly too.
In the past I have found it depends on who you are dealing with and which bank as to whether they provide you with the valuation price. Some banks in the past have not wanted to give me the figure (company policy) although I have then escalated the call to the Manager and almost had to demand to know (in a polite way of course) in which they have then told me. Unfortunately you may have to get a little pushy. I think some banks just don’t want to tell you as are worried with what the reaction of the owner is going to be – you may have to re-assure them that you are just curious to know the valuation price and feel you have a right to know (as the owner).
I have a good relationship with my Branch Manager of one of my properties and he has advised me that he is not supposed to say (again company policy) so he gives me a figure so I can work it out for myself. Eg. between $110 – $112. Very funny.
good luck – cheers,
Fluffy
Hmmm extracting a written copy of a valuation from a bank – sounds easier than getting blood from a stone……!
Seriously, though, in my experience they will ALWAYS tell you if the valuation is low, because then they won’t lend you as much as you want. Other than that it always seems to come in as the sales price.
I did manage to get a written valuation once – that was because I wasn’t going to go with the original loan company (long story!) and once they were satisfied that the valuation wasn’t the reason for me walking, they let me have it to satisfy the next lender.Keep smiling
Felicity
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