hi all,
happy to say that i have finally got myself and family back in the market with a nice little home (PPOR) in a strong growth area. i have good reasons to think i’ve picked up a bit of a bargain so i wonder if anyone could kindly answer a couple of questions for me:
1. how long shoukd i give before i have my property revalued (if i believe i’ve it has increased significantly in value as a result of minor renos and market movement)? at least 12 months? do i ask my bank to do the valuation or organise it myself?
2. my loan is split between fixed and variable. is this going to cause any incovenience in accessing any equity that i discover i have? i have a 98% LVR loan and i have about 17% in a variable loan and the rest fixed for 3 years.
thanks
dylanoHi Dylano,
Congrats on your new home.
With regards to the revaluation, why do you want it, general interest or to borrow against? If general interest, you should get a fair idea from the REAs. If getting the bank to value, first check how long they will give between valuations. My lender will only revalue once every 12mths, this can be either a plus or a minus (market gain or loss). You may not want to get it valued now, plan to buy in 6 months, have the property increase but not be able to revalue at the new price.
If you get an independant valuation you may pay up to $500 or thereabouts.Hope that helps some
Tammythanks for your help tammy.
the reason to revalue would be to access the equity. i have only recently purchased so i am looking to know the soonest time i can it have it revalued (provided i believe it has gone up in value) so i can access equity.
i actually meant to post this on the finance question section
so if any finance brokers have any answers, would be much appreciated.so in about 12 mths i get the bank to revalue and pay a fee i guess?. will i be able to access equity and how will LMI factor in? how does my split loan scenario work with all this?
thanks – just trying to work out some goals and would like to know when i can access some equity.
much appreciated – look forward to being more involved on this website over the coming years.
Dylano
Most Lenders would consider revaluing a house after 6months and we could even get a valuation done earlier then that, if we put up a good case, such as renovations have been completed etc etc.
Heres a Link to the post i made about Equity. Should take a look(post 2nd from the top).
https://www.propertyinvesting.com/forum/topic/24995/2.html
Regards
Joshua McEwen
Finance Broker – WAhttp://www.prestigeloans.com.au
Brokers Lic 1297
Licensee Brett ChristieSometimes it is difficult to get the lendeer to agree with a revaluation quickly if there is LMI involved. It is generally 6months if so. But one way around this is to suggest you are going to another lender.
Terryw
Discover Home Loans
Parramatta
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thanks terryw, josh.
josh, i read your post and got a better understanding of LMI.
as i have just taken out a 98.5% loan and paid LMI, i think perhaps a good step for me might be to look for a LMI refund if i can a get a revaluation in 12 mths time that brings my LVR to back to 80%. i think this is a real possibility, especially if a make extra payments.
what are my chances? is LMI often adequately refunded?
thanks
dylanoNot a market where valuers will go out on a limb and revalue significantly higher within 12 months unless there is a concrete reason – ie new building etc.
Might be easier to refinance with a lender with a more flexible valuation approach and claim the LMI back after the loan is redone.
Not worth it if the costs outweigh the refund and the rate is any higher.
LMI refunds are possible but not common. many bankers will tell you it cannot be done but only because it is rare and many have no experience of it. If they baulk then invoke the name of the Banking Ombudsman to get them moving [biggrin]
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
so if any finance brokers have any answers, would be much appreciated.
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