Hi All
Couldn’t agree with you more Mini, great reply.
Having done a bit of bird dogging last trip myself I know it is not easy. In fact I ended up getting better deals for other people than I did myself.
The responsibility of buying for others is a lot harder on the nerves than people can imagine if they have never bird dogged before. It takes a lot of talking to the agents before they will trust you as being serious in what you do.
Luckily I have a good rapport with a number of agents who now know I am serious but it did not happen overnight. I now get calls from these agents before they list new properties; marvelous what happens after you buy 5 or 6 houses through them. I even bought a property that one of my clients could not get finance for, just to save face with the agent: although it was a good buy at $55000 returning $140 a week, located 800 meters from the CBD and right across the road from a large supermarket.
Having people on the ground is also vitally important; you simply can not beat local knowledge: as you said without it you leave yourself open to buying in the wrong area. Not much good having the best house in the worst street.
You are also spot on with your comments about finding finance in NZ and not looking in OZ. I had one of my clients assure me that his finance broker here could definitely get finance for him. He now is getting finance from my source and it is costing him $25 a day in late settlement fees: I have refrained from telling him “I told you so†but only just.
I would also recommend that if anyone is unsure about buying a property sight unseen from the net, they should have a talk to someone who has good contacts and knows what is what: your friendly local bird dogger is a good starting point.
Kerwyn.Kerwyn,
great reply back, and *conspiratorial wink* – I hear ya – about ALL of it! welcome to my world!
So yeah, “assure me that his finance broker here could definitely get finance for him.”
Oh YAWN, now if just ONE single person could tell me they got finance in Aus for a NZ investment purchase secured against the NZ house, then I would believe it is possible.
I don’t mean line of credits against your Aussie house, either, I mean, finance on the future purchase! Well, I know the brokers are willing, but I don’t think the lenders are ‘there’ yet.
Besides why would you, you are exposed to fluctuations then. Borrowing in NZ is the way to go, and if you don’t believe me, tell ’em
dolf de roos says so.
cheers-
MiniHi Mini
Spot on again. One day people may listen and save themselves a lot of problems.Kerwyn
Originally posted by RentMaster:Absolutely!
Unless you are paying cash or a large cash deposit, the banks will require you to get a valuation anyway. The banks are not dumb. If they are going to give you a lot of money, then they are going to ask you to do their due diligence for them.
So if the banks thing it is important, then it should be important to the investor as well.
Andrew
http://www.rentmaster.co.nz
Software for LandlordsI’ve been told by my bank, the Valuation of a property is what it’s sold for.
They only do valuations on the property we have, each time we purchase.
They Value our Equity each time we purchase.
Our bank is the ANZ.“Valuation of a property is what it’s sold for”
Incorrect.
“what it’s sold for” is the Contract Price. “valuation” is the…er…valuation. As in a multi page document prepared by a registered valuer. This valuation may or may not have anything to do with the purchase price! It may be higher (yay!) or lower (boo!)But you are correct that in certain circumstances the ANZ will not require a valuation and will lend you X percentage (whatever your LVR deal is with them) of the purchase price.
I always get a valuation if I think the property is going to be worth more than what I paid for it, so I can use the extra equity straight away. In this way I can recycle my deposit virtually instantly and go again.
I am with ANZ too.
thks MiniMogul,
“I always get a valuation if I think the property is going to be worth more than what I paid for it, so I can use the extra equity straight away.”You know it’s little snipp’s of info like this that make you stop and think G’s thats a smart way to go.
About the Bank thing “valuation” yep,It was just 1 persons way of seeing things.
RegardsHi Westinvest
I think you should always get a valuation regardless: this is a part of your due diligence.
In the event of sounding monotonous you must check as much as possible out about any property you want to buy. If you don’t, you leave yourself open to buying a lemon, I know I have bought some lemons: reality is a hard task master and expensive. Hence the title of my thread,
Due Diligence rules supreme.
Kerwyn[biggrin]Hi Guys
I somewhat agree with Kerwyn – especially in today’s market. Especially if it’s your first property and especially if you don’t know the market backwards. I have recently started getting valuations every time I buy. As much for the lender as anything else ( as already discussed) to maximise my future purchasing power and equity faster, but also, to ensure that I haven’t paid too much for the property.
I didn’t used to though – it hardly seemed worth it for a 16k house, a 27k house! But $500 sure is worth it to show you just made $16k.!
If the property doesn’t value up, damn right I’m marching back to the vendor waving the valuation and getting a discount to go unconditional!
even if you still pay a bit too much you may be able to meet the vendor half way. Of course properties in some areas frequently sell for over valuation, but in other areas, they frequently sell under valuation.
In my experience of the market right now – it is easier to and you are more likely to buy under valuation with a property say over 300k and more likely to have the valuation not come up to purchase price if the property is a cheapie.
Basically this is because there is much more competition for the cheapies and not so much for the more expensive ones.
However! the cheapies are therefore (due to more demand) going to be less likely to go down in value, right?
I do lie awake at night pondering these things!
cheers-
mini
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