Hey guys
I'm really new, and I try to buy my first home in SA.I'm interesting in a house which is 350k, but I accidently found the current capital value is 240k.
that's really a big varience. 110k!!!!
can any body tell me, do I still need to buy that? I know there always something on the market.
it's quite urgent! my cooling off will start very next Wednesday!!!!
Thanks
Jack sorry slightly confused as to what you mean when you refer to "Capital Value" are you relating to the unimproved value of the land ?
With a little more information i am sure you get other responses.
Richard Taylor | Australia's leading private lender
Hi, sorry about confusing.
Current I decide to buy my home. The property price is 350k, and I put the price on the contract, today. And the agent told me the cooling off will start on 1-jul-2009. and my wife accidentally saw a folder which contain a lot info about that house, and she saw the current capital value is 240k. I really don't know what this means. from my understanding I thought, it should be some thing like standard value about that property, if that is true, I will buy the house at very top price. and i will have risk to lose money in the future. if that is true, I won't buy that house.hope to get some ansower asap!
I think your valuation will reveal that but i doubt it was referring to the property value more likely the land value.
Richard Taylor | Australia's leading private lender
so, what u think do I really need to buy the house or not?
240k to 350k the buble is 110k! I would think. if the buble is around 70k. that is acceptableif your contract stipulates “subject to finance approval” then the bank needs to do an evaluation on it.. if it comes back much lower than your contract offer then the bank is unlikely to approve the loan so we can then ‘walk’ away. bank emails are usually conservative (so I was told) so you will be on safe side.
it is subject to finiance. but next time if I want o buy a property,how do I know this kind of things before everything is under contract?
And let's say if the bank want loan. will they help to create some kind of buble? That's I'm worried about, just like the USI assure you in the present climate the Banks do not want the loan and are more risk adverse than you are.
Richard Taylor | Australia's leading private lender
The other you need to put in would be building inspection, if the property is not structurally sound then would be able to back away.
I think auctions are usually not subject to anything (unless you agree with vendor) so be extra careful
Also search is important to avoid future road/rails/etc.. running through the property.yeh, I will. so the price is really according to the market.
the other thing is really interesting is why every one try to sell their house right now? at this moment?
it sounds abit werid. cause the market price is dropping.
esepcially the 20~30 years houses, they are being sold.
Can any one explain that?how do I search for avoiding future road/rails/etc.. running through the property. and Why that gonna happen?
you get your solicitor to do searches for you… solicitors should be able to help with anything else to put into contract… my experience is don’t do the legal yourself, it’s their bread & butter so they know more than us.
there are many reasons that people sell houses:
– need money for something else
– can’t afford the morgage
– deceased estate
– partnership falling apart
– etc…i mean this area is quite small but around more than 20 houses are selling now. that's werid.
that is strange, you need to do some investigation with investment properties, actual with any property…
also take out insurance starting the day you take possession of the house.what u mean? what kind of insurance? in this area. the price is around 300k ~390k.
I'm in SA, hosues in modbury, redwood park, golden gorve,etc, are poping up to the market.
I just don't know why so many people want to sale their house? and the houses are not that old, they just 20~30yrshi jack that is a big diff in CV to purchase price.
can you give more info re the property?
the CV is the unimproved value used for council rates, water rates, ESL etc.
is this for invest or to live in? regardsacually, I buy this house for living, but, I also want to do some investment as well. that's why I'm looking at these areas instead of mason lake or some hot areas.
do you think you are paying too much? was it on the market for long?
prices are dropping in some areas purchase/asking price as well as CV . if you are going to hold the property for along time it will catch up improve in value. loans/money can be difficult to get at present but interest rates are low.
not a bad time to buy but some say because first home buyers are eager to buy they maybe are increasing prices.
time will tell.
good lucku actually need to take out insurance the day your offer is accepted on contract, not when you take possession.
hey guys, the house was on market for 2 weeks
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