Depends on the market/ area and if you can find 6 comparable sales that sold in the last 6 month.
It find it helps when we provide some of our own comparable sales to the bank/valuer at the very start.
Bank Valuation came way less than expected
- Thread starter allsuccess
- Start date
Depends on the market/ area and if you can find 6 comparable sales that sold in the last 6 month.
It find it helps when we provide some of our own comparable sales to the bank/valuer at the very start.
Thanks Michael.
Any timeframe that you suggest (say 6 mths or 1 year), before I start to refinance again (using the same bank)?
Statistically less than 3% of valuation challenges are overturned.
Better of hunting around for a better one with another lender.
Desktops can work well. I have done one recently with CBA that came back at 370k. Did one a few days later for same property and came back at 390k.
Incidentally there policy allows desktops up to 80% but have got three through at 88% in the last two months.
I'm going with CBA with the re-finance. Their desktop valuation came satisfactory.
You do it when the value of the property has increased sufficient to have the equity you need for the next step in your plan.
The time frame will depend on the property, the location and what the actual capital growth is. It could be 3 months or it could be 3 years.
No real time frame that i can give without knowing exactly where you bought and your current and new LVR.
Generally if your an active investor, you would carry out a new upfront valuation every 3-6 month depending on the market/location or what you have done to the property.
You would refinance if the equity is better else where...but not if your current loan is on a LVR higher than 80% as the LMI is payble with the new lender, you would only do this if there's a hige diff in the new equity amount.
A friend has recently had this same issue. Bought property for around 800K 5 years ago, valuation was closer to 900K at the time. Got revalued recently and the valuation came back close to original purchase price, despite inferior apartments in the same building recently selling for over a million. Needless to say she is not impressed and has objected to it. I think they refused to reassess and she is taking it further. Where to I am not sure!
I had this with one of my IPs. After the purchase, I thought to re-finance and take some equity out based on bank's higher valuation. However, that time, bank valued it to the original purchase price and re-finance didn't go through.
I think you better buy lotto Terry, that's how rare it is.
It happened to me once before - about 2003. But that was a unit with an identical unit selling next door for much more. This is a house.
