Hi All
I have an OTP unit under contract with settlement expected around September 2015.
The purchase price is $439k (about $30k below the developer's valuation). I am in the process of changing the unit to convert it from a 2 bed plus study to a three bed. This is being done as a variation and will be done by the developer as part of the construction. Expected val for the three bed unit would be $500k - $530k.
Unlikely that it is relevant, but this will be a PPOR.
Given the above:
1. Is there any chance a bank will lend on the value at completion of $500k - $530k?
2. Is it likely that the valuer will see the purchase price and just bring the val in at the purchase price regardless of comparables, buying under market value and the variation to value add?
Thanks in advance.
I have an OTP unit under contract with settlement expected around September 2015.
The purchase price is $439k (about $30k below the developer's valuation). I am in the process of changing the unit to convert it from a 2 bed plus study to a three bed. This is being done as a variation and will be done by the developer as part of the construction. Expected val for the three bed unit would be $500k - $530k.
Unlikely that it is relevant, but this will be a PPOR.
Given the above:
1. Is there any chance a bank will lend on the value at completion of $500k - $530k?
2. Is it likely that the valuer will see the purchase price and just bring the val in at the purchase price regardless of comparables, buying under market value and the variation to value add?
Thanks in advance.