I have the opportunity to by a property that is a private sale. It is situated in a new development that was formerly a housing trust area. Most of the blocks around it are empty and are for sale as house and land packages.
RP Data says it is valued between 127,000 and 147,000. Its a 3 bedroom on 940m2 but all the blocks around it are about 450m2.
The block accross the stret can be bought for 243,000 with a brand new house that comes with free fencing and landscapng.
The owner was asking for 220,000 neg but after a bit of bargaining he wont budge lower than 200,000.
It is over priced at the moment but in a few years when there are brand new houses literally surrounding it, I can't see how it isn't a good investment. The problem is getting the bank to give me the loan as I know the valuer won't think it worth 200,000 as it needs a bit of work.
A masionette down the street that has had a few renovations is going for 185,000.
What are my options?
Thanks
GeorgeLenders will generally only lender on the lower of the value or the purchase price. So if the valuation comes in lower, there is not much you can do – maybe try another lender, or just put in the extra cash if you still think it is a goo deal.
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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