Gidday Guys,
Does anyone has any insights here? We have a pending valuation booked so I need to act fast. We have a plumber 'at the ready' but not totally convinced replacing the a portion of the roof will help the valuation any?
We're told the Valuer will not look at the roof (the front facing two thirds of the roof is terracotta tiles – which we had replaced when we did a complete reno, but we didnt touch the remaining – back facinng 3rd, which is iron), but I am not convinced.
The property is in Yarraville, Melbourne. We did a complete renovation, from the ground up – as a reference point, an easy $100k spent off a cost of $350k. We had it valued at $525k in Feb 2009 – an ok return, but given our timing – arguably at the peak of the 'bottom'? we were expecting considerably more. In Nov 2008 (only 3 months before) comparable sales were $600-620k. We put that down to the banks conservation/perservative view at the time?
Now, one year on, we've seen comparable sales at $675k and $685k – for Seddon, not as 'sort-after' (if that is the right word?) as Yarraville, These are also completely renovated properties, our property would be almost identical, if not for the roof (its dull, a little bent in places, a few holes from missing nuts. By no means 'pretty'). These others, immuculate. Also, as another comparison, an Unrenovated property (similar to the original condition this property was) sold last week for $570K – in Seddon! That is $210k over what we brought ours in. Add $100k reno to that and you get $650+.
Im expecting the bank (Rams) to be conservative. we'd like $650k, but need to know what we can do to help?
Any tips or insights would greatly be appreciated!
Cheers,
HeathHi WG
I'd do it so I know Im competitive with whats on offer in the local market..and I'd tell the valuer how much I spent doing it so that it was just right and to standard with the rest of the reno…Cheers..iball
I have always had problems with RAMS valuations. That's the downfall with them, however atleast they are still doing Low-doc loans.
Personnally I'm not one to leave a job half done, if its got holes and I'm guessing you means there are missing roof screws (bolts) which may let water in. What is the cost to replace the sheets?
You never know a building report indicating the roof situation to a buyer may spook some people and a sale may fall through depending on how the contract is worded, why give the buyer a barganing chip?
If I was inspecting the place and saw the roof after a major reno was carried out, I'd have to ask myself if the person has cut corners here where else have corners been cut that I cannot see.
As for adding value it may or may not get you a better price although it will stand up against the other places on the market, speak to your real estate agent.
Just my 2 cents worth
BrianHi wellness guy & dannyde
I have had around 15 property valuations in the past year. They will not look at the roof, so I would not bother. the most important factor for a valuer is the recent sales results, so I would have those ready for him as well a list of similar properties in the area with their asking prices, although that will not have as much influence.
Almost have of my valuations were from RAMS, but I did not have a problem, they contract local valuers and I thought the results were fair.
Danny, your comment about rams still doing low doc. I have been with a broker for 8years and had a majority of my properties with Rams, but last December I was about to buy another property but the broker said that rams will do a low doc but want tax returns or full proof of income. I have now switched to ANZ and have a cheaper rate.
regards
pgbI would be different from everyone else and say it depends on what your goals are.
What is the purpose of having your property valued at $650k? It is only worthwhile spending money on the roof if you want to borrow your equity and you think you will get more money from borrowing equity (due to a higher valuation) than you would spend on the roof.
Lets say you wanted to draw out $100,000 for another investment. For this you would need to increase your valuation by $125,000 (assuming you can only draw out 80% of equity). Say if you don’t do the roof it only gets valued $100,000 higher and you can only draw out $80,000. But what if you spend $20,000 on the roof and the valuer only gives you a $125,000 increase. You can then draw out $100,000 but you had to spend $20,000 on the roof so you end up with the same result.
So it depends on what you want to do with the money. If you were selling then I would probably say yes, you want top dollar in a sale. But getting it revalued is a different situation.
So what did you want to do with the money? Are you going to draw it out? Or is the revaluation just to make you look better on paper?
Ryan McLean
http://CashFlowInvestor.com.au
Positive Cash Flow Properties Are Just a Click AwayRyan McLean | On Property
http://onproperty.com.au
Email Methanks pgb, I just settled yesterday on a refi with Rams on a low doc 6.04%( +0.25% RBA recent interest rate rise), $10K cash out. No tax returns, in fact nothing but verify I can afford the loan. Just out of interest what's ANZ offering now?
@ Dannyde – So what did you have to provide to RAMS in order to get the home loan?
Are you a PAYG worker or a business owner?Ryan McLean
http://CashFlowInvestor.com.au
Positive Cash Flow Properties Are Just a Click AwayRyan McLean | On Property
http://onproperty.com.au
Email MeRyan – I gave them NO evidence at all of my income, except signed a stat decl that I can afford to make the payments. I Borrowed under my Disct Trust.
But I do have a history with the Rams guy/office —- I got knocked back last year (not by Rams) by LMI Insurer for Rams as I did not disclose some of my other properties. They (LMI Insurer) locked me out for 6 mths before I could re-apply. Once I did, 24 hours approved.
Retired 4 yrs ago on property, but have kept my business operating (as a property investing company) with ABN number, but they did not ask for that either.
I have just put in another re-fi application today with them but I have stipulated that I want valuation be done first before I go any further with them. They have had CRAPPPPP valuations in the past for me.
dannyde
ANZ came to the party with no applic fee, no deferred applic fee, no valuation fees, early repayment at around $640, (no intererst costs) even if I refinance next month, 5.89%
regards
pgbBut is this a low doc?
dannyde
Yes it is loc doc. I provided no financial informatiom.
pgbI just re-read your post and noticed it was a new purchase, not a refi with ANZ, is that correct?
dannyde
i was peeved with rams, so it was a refinance. i am now proceeding with the new purchase
pgbThanks pgb, I will get my broker onto it. BTW – who's your broker? Would you mind sending me his details?
Hi Guys, thanks heaps for your comments, very much appreciated! The roof replacement is looking at $2k, for the expense, its likely we'll go ahead – mind you, I had a conversation with ANZ today and loans over $150k get a 0.70% discount. I'll be sure to raise that with Rams, see if they will counter? Also no fees or establishment costs (our exit costs are negligible now with Rams). Will keep you posted!
Cheers………..Heath
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