Hi All,
Having just purchased a unit, I was wondering if I can get your opinions on what to do with it.
Here are the facts:
– 1st home owner grant so will stay in it for 6 months
– During the bank loan phase, the bank had to escalate to their internal team as the bank valuer could not compare with enough surrounding recent/similar sales and had rated the external condition of the building as ‘fair’. The bank gave the all clear, and the value put down by the valuer was my purchase price
– I do note that the unit next door sold for 60k more 6 months ago. Pretty much the same dimensions, but had a renovated kitchen, bathroom, and had nice furniture. Mine does not.Questions
Do you think its worthy to renovate my kitchen and bathroom and make it to the same standard as next door for say 20k and then get it re-valued at the end of 6 months, so I have more equity to purchase another IP? And then renting this one out to tenants?Is it wise to do this in these ‘unpredictable’ economic conditions?
When it comes to re-valuation at the end of 6 months, does this guy need to be bank approved, or can I present the bank with say 3 different valuations for them to agree the unit is worth more now? How likely is the bank to agree to this new value and allow me to borrow more based on the new value?
Thanks people!
The best idea is to find out from your lender which valuers are on their panel and then choose one of those to get a valuation through.
I think it's a fantastic idea to renovate and it's very handy to have such a great guide (being the unit nearby) as to what you can expect to gain once you've completed the reno.
Uncertain times is an even better excuse to create value rather than rely on just maket growth.
Good Luck,
AmandaThanks Amanda,
I have a copy of the valuation from the valuation company to the Bank.
I will call that company up tommorow, thanks for the idea!
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