Hi all
Im about to buy a property that needs a little work done on it and am a bit unsure about if i should get a valuation before and after the work is done. Its an investment property so would there be benefits in getting the valuations so that i can access the equity to us as a depostit for another property? or am i not thinking straight[blink]
thanksBanks usually will not accept your valuations – often even if done from a valuer on their panel.
It would be good to get a rough idea (maybe from an agent) and then if you intend to go for an increase, use the bank to order your valuation – so you don’t have to pay twice.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Also depends on what type of renovations you are intending to make and what hte perceived value increase will be. – sometimes both the budget and timeline blows out on renovations and the return semms not worth the effort.
Originally posted by terryw:Banks usually will not accept your valuations – often even if done from a valuer on their panel.
Hi Terry,
Is this a recent development as I have used this approach in the past without a problem. In getting the valuation I have ensured the valuer is a panel valuer and that they make the val suitable for financing purposes for the lender involved.
As an aside it makes you wonder why the banks maintain such a policy and once again brings into question the reliability of valuers figures.
I mean to say the same valuer looks at property X on one day and does a valuation for finance with institution Y – surely the figures should be the same after all they are trained and do their market research of the area.
The cynic in me wonders if ‘special instructions’ are sometimes given to valuers by the lenders.
Derek
[email protected]Property investment advice and researched property in quality locations available.
Further to Derek’s questions, could you not assign the valuation to lender x….??
Good point Derek!
Yes, if you get the valuation assigned to the bank (they usually charge another fee) or tell them initially that it is for a loan with XXX Bank, then it maybe fine.
But sometimes the banks/lenders can be hard to deal with. I had one client who had a valuation, but we had to let the bank order another one with the same valuation company as they had a policy of ‘instructing’ the valuers themselves.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Hi Terry,
Thanks for that – your post also reminded me that last time the valuer was asked to go out again and value the property in question.
We (the valuer and I) had a good laugh about it and I suggested to the valuer that maybe the bank didn’t think he got the right figure last time and that maybe he should comply and add a couple of extra 00s and see what they say then.
Needless to say the valuer didn’t go out and spoke to the bank in no uncertain terms about their questionning of his first report.
Derek
[email protected]Property investment advice and researched property in quality locations available.
[biggrin] I am in the process of buying 2 investment properties so needless to say had to have my other properties valued. The wait for the valuation to come back was excruiatingly slow [confused2]when it came back after 9 days I found out that the valuations came back too low and the bank knocked back the loan!
Further investigation found (which bank)had sent their panel valuers out and all they did was a drive by assessment [angry2]!! So now more time is lost (lucky vendors are patient people)while they go back and do the job properly…I can’t understand how they thought they could get away with being paid (by me) and not do my properties any justice by only doing a drive by valuation…Very very frustrated
Jenny1
I recommend you utilise a broker that is large enough that they are able to instuct the valuer themselves ie the one you want . try sfs on 03 9882 3400 they do my loans and they instruct the valuer for me
Thanks Tonw wpb
I will look into that, hopefully it works the same way in ACT. [biggrin]
Jenny1
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