Hey guys, I'm about to move into my first dual occupancy home. It's in hillcrest, qld. I purchased and built for approximately 410'000. Realistic achievable rent is about 6-700.
Here's the thing, there's nothing like my house in the area. It's 9 foot cielings, granite benchtops on all kitchens, bathrooms, and laundry. Soundproofed walls, fully insulated and air conditioned. I wasn't interested in a regular house because I wanted something cashflow positive from day dot so I somewhat broke the mould with a dual occ. I'm the only dual occupancy house for miles around.
Anyone know any tips on getting the 'right' value on a house that doesn't have any comparisons, rather than just getting a typical drive-by slapjob?
Obviously I want as much equity as possible.
Hi Benjamin,
If there are no genuine comparable sales in your area, it is hard to get a true valuation. Different valuers use different formulas, but essnentially any property that may be overcapitalised and have a suggested OEMV well above others in the area is unlikely to be what the owner would like. Also depends on the valuation 'purpose' too believe it or not. I guess you realise that if you have just bought the place literally, it will only be 'worth' what you have paid for it on any valuation done. (I have seen places come in lower thatn the purchase price too over the last few months…..)
IF you are interested, below I have listed a typical 'bank valuation requirement' to guage comparable sales that may help yourself or others in future.Cheers
Zoning
Are the comparable sales and the subject property similarly zoned?
Land use and potential utilityAre the property types similar? Do they have similar potential need? For example, house, villa unit, lifestyle farm, factory, shop, and office. Location:- Are the properties in proximity to each other? Physical characteristicsAre the properties similar in age, construction, quality, and size? Proximity to amenities and servicesAre there any private and public schools, shops, transport services, parks, beach or industry nearby? Title and tenureAre the title and tenure the same? For example, freehold, leasehold land, crown land, and tenant’s interest in the property. Evidence of Planning OverlaysIs there any evidence of any Planning Overlays which may be restrictive? For example, Public Acquisition Overlays (PAO), Environmental Audit Overlays (EAO), and Land Subject To Inundation Overlay (LSIO).
Brilliant, thankyou.
I don't plan on selling the house, merely getting it valued at a decent rate so that I can use the equity to go again. It's a cashflow positive money spinner. I already have equity in it as my deposit was 40 percent, because given my financial situation they didn't want to lend me any more than that! So I've already paid half of it off, on the lookout for another dual occupancy home.
In my experience there is nothing precluding you from getting your own valuation done. I have found that if you prepare properly researched, well presented "valuation support" documentation your valuer will be happy to use this as a reference. Make sure of course that the valuer you engage prepares a "valuation for mortgage purposes" and that they are a board valuer for the bank you are using for funding.
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