Hi,
When you commence renovating your IP right after the settlement date and say you finished the reno few weeks later (e.g., 2-4 weeks after spending 10K). Do you immediately get a revaluation done, if creased in equity is sufficient for next deposit in your 2nd IP, so you can refinance? Or wait for few months (e.g. 6-12 months) before you revalue the IP?
Is there an idyllic waiting period before you revalue your renovated IP? How long did you have waited before you revalued your renovated IP?
Thanks Leo
The amount of time can depend on the lender. Give them a buzz, explain that you've added significant value, and see what they say.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
There are lenders changing policy on a daily basis. The general understanding is most lenders will require you to wait 12 months for a re-val with no work done. However, often with documented renovations you can get a re-val done at about the 6 months mark. Some banks are also different to what I mentioned above – however most fit into the afroementioned policy. The best way to find out is through a mortgage broker or foot slogging.
In the past I have waited six months to have more choice. However, everyone is different.
It’s possible to get a reval done sooner than 6 months (it does depend on the lender). For the most part, you just need to let them know that you’ve carried out significant renos that have added value.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Word of thought in New Zealand once you have fully completed the Renovation generally you can approach a reputable Valuer and have them revalue your home. Have before and after pictures that you can show them, it helps in some cases as they do not know what it was like before. Also find a valuer that knows the area as they will be in a far better position to see the transformation and give a more realistic valuation, Over valuation to gain Refinance is a sure way to get knocked back. Then approach your bank/lender. It may not always work but you have a better chance of success armed with the right information.
Hi there,
you have a few options. You can find a valuer as Edward-L mentioned, but you can also get it done for free by another bank/financial institution. Just to give an idea, let's say you have your current loan with anz. They initially did their valuation on your property before they gave you the loan. After you did your reno and if they sort of refuse to do the value assessment again (for whatever reason) call another lender and have them to do it for you. Just remember that some will do the assessment using computer modeling program, which you don't want. You need to find a lender who will send a person to your place to look at it. You may get your mortgage broker to help you if you are not sure.
M.maxipes76 wrote:Just to give an idea, let's say you have your current loan with anz. They initially did their valuation on your property before they gave you the loan. After you did your reno and if they sort of refuse to do the value assessment again (for whatever reason) call another lender and have them to do it for you. Just remember that some will do the assessment using computer modeling program, which you don't want. You need to find a lender who will send a person to your place to look at it. You may get your mortgage broker to help you if you are not sure.
M.If you’ve carried out a fairly large reno that you believe has added value – you’d expect your lender to carry out a revaluation at your request. If they’re not interested in carrying one out – then they’re not a lender that’s conducive to your goals. I had a client, who many years ago went direct with a “painful” lender, who refused to carry out a valuation on this newly renovated property because they had a backlog of work and simply didn’t see it as a “priority” – in this instance, it was simply time to move onto another lender.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Jamie M wrote:The amount of time can depend on the lender. Give them a buzz, explain that you've added significant value, and see what they say.
I agree with jamie. And that is true too that the more your property is looking new the more it is supposed to give you value. So all you need is to boost that what you are presenting is fine.
We have had re-vals done a week after settlement (had access to property prior to settlement to complete renovations). Banks requirement was invoices for work completed. Agree with the above comments though, all banks are different.
I understand this is an older post but here is what I have encountered over the last couple of weeks.
I signed a contract in Jan on a property and subsequently valued by the bank, the property was valued at 60K more than the contract price however the bank took the contract price. There was a 60 day settlement.
Due to having another property flooded in Jan although insured it is coming time to recieve the cash settlement from the insurance compnay. To know exactly where I am at and the best course of action on all fronts I paid my bank to value it. Cost me 200. The banks policy was that the could revalue it for free but they require some form of application to do so. 200 isn’t to bad and they can’t say no they won’t do it as they outsource the val regardless.
I hope it comes up trumps find out next week.
So in essence some banks allow you to pay for your own val whenever you want it. If you find out you have made 20 – 40K after a reno and the val costs 200 which is deductible I don’t think it is to much for out.
The best time to have a valuation done (subject to all the comments above and the banks willingness to do it), is when your property is looking it's best, which is right after the reno. So make sure you have completely finished the renovation (and don't have little bits here and there still to be done) and cleared out all the rubbish, tools, etc from the reno. There is no point in waiting a few months and having tenants move in and then be dependent on how their furniture and cleanliness makes the property look.
SandraL wrote:The best time to have a valuation done (subject to all the comments above and the banks willingness to do it), is when your property is looking it's best, which is right after the reno. So make sure you have completely finished the renovation (and don't have little bits here and there still to be done) and cleared out all the rubbish, tools, etc from the reno. There is no point in waiting a few months and having tenants move in and then be dependent on how their furniture and cleanliness makes the property look.Yep, totally agree. I know valuers are supposed to look past the contents, etc but a nicely presented house is (in my experience) going to attract a higher valuation then one that’s cluttered and messy.
It’s an important point to consider when tapping into equity – particularly if you don’t have a whole lot of it to access.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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