Equity...How Often?
- Thread starter pi2012
- Start date
Not sure about other banks, but with CBA, I can get them valued whenever I like (at no charge assuming it's as part of a new loan app. or top up). But, you should have a general idea on what the market has done, and there's not much point in getting another valuation done a few months later if the market hasn't moved much.
If you think the valuation should have increased, then go for it, but be aware of what Rixter said with the data delay for valuers. Closest I've had them re-valued is about 3-4 months from memory, but it can be risky. If one of your IP's comes in below the last valuation, the bank could then take that as the new value, and you actually end up worse off.
If you think the valuation should have increased, then go for it, but be aware of what Rixter said with the data delay for valuers. Closest I've had them re-valued is about 3-4 months from memory, but it can be risky. If one of your IP's comes in below the last valuation, the bank could then take that as the new value, and you actually end up worse off.
Hiya
if the equity growth is there 3 to 6 mths is doable, especially where LVRs are 80 % or less
ta
rolf
if the equity growth is there 3 to 6 mths is doable, especially where LVRs are 80 % or less
ta
rolf
hi pi2012
usually if you aim at every 3 years is the best as it gives you a fair bit of growth and as there are costs involved with valuation and legals to renew or re do loans less then 3 years can dilute that growth
were as 3 years does give you a bit of a kick along.
you can leverage off the equity without taking a loan and as a rule when you are buying another property the cost of the val incorporate both the new property and the one thats has grown in value.
in wa they have had high growth but I would still hold te reval until you have a far bit of growth and 6 month is not going to give you say 30% growth because if it has then thats a 60% for 12 months and I would like to see that suburb.
I reval my commercials as a rule every 5 years but that because they are 3x3 leases so reval before they come out of lease.
it depends what or how you are using your equity.
remembering that time is the main item that gives you growth so the longer betweenvals the bigger the kick.
just my view.
the only difference to the above is if you have bought cheap done a reno and then want to reval and increase the loan but this is a one off and is taking your money out of the deal, not refinancing on the equity ( very different things)
you should keep an eye on the market you have bought in and that will give you a good idea of what your gains are.
usually if you aim at every 3 years is the best as it gives you a fair bit of growth and as there are costs involved with valuation and legals to renew or re do loans less then 3 years can dilute that growth
were as 3 years does give you a bit of a kick along.
you can leverage off the equity without taking a loan and as a rule when you are buying another property the cost of the val incorporate both the new property and the one thats has grown in value.
in wa they have had high growth but I would still hold te reval until you have a far bit of growth and 6 month is not going to give you say 30% growth because if it has then thats a 60% for 12 months and I would like to see that suburb.
I reval my commercials as a rule every 5 years but that because they are 3x3 leases so reval before they come out of lease.
it depends what or how you are using your equity.
remembering that time is the main item that gives you growth so the longer betweenvals the bigger the kick.
just my view.
the only difference to the above is if you have bought cheap done a reno and then want to reval and increase the loan but this is a one off and is taking your money out of the deal, not refinancing on the equity ( very different things)
you should keep an eye on the market you have bought in and that will give you a good idea of what your gains are.
What does it roughly cost to do a valuation if not done by your bank?
Last one we had it with NAB was no cost as we've got a professional pack and that covers the Valuation costs.
During the boom in WA I was having valuations done every 3 months, for me it's got nothing to do with time more to do with whether or not I can prove an increase in value.
If my bank had a policy of only allowing a valuation every 12 months I change banks.
Having access to equity restricted would have slowed my growth.
Mark
If my bank had a policy of only allowing a valuation every 12 months I change banks.
Having access to equity restricted would have slowed my growth.
Mark
I want a high one!
hi twobobsworth
as i say to alot of people and mentioned it a meet yesterday value is a very perceived thing as your value and mine maybe be very different values.
and its the same with valuers.
just because you pay more does not mean that you get a higher value its that you get to a value that you want but then alot more work goes into that value to justify how it was got to.
and you pay for what you get.
I do get some values very wrong and have done a couple in the last couple of months that were not within a bulls roar of the sale price and my offer was not even close but thats the risk of business.
with commercial its alot easier to work out as its on return or floor space rate and they increase relatively the same for an area.
bit harder on resi.
you will find the main groups at 1500 and above are cbre,landmark white,colliers,savill and they are on all the lenders panels.
hope this helps
as i say to alot of people and mentioned it a meet yesterday value is a very perceived thing as your value and mine maybe be very different values.
and its the same with valuers.
just because you pay more does not mean that you get a higher value its that you get to a value that you want but then alot more work goes into that value to justify how it was got to.
and you pay for what you get.
I do get some values very wrong and have done a couple in the last couple of months that were not within a bulls roar of the sale price and my offer was not even close but thats the risk of business.
with commercial its alot easier to work out as its on return or floor space rate and they increase relatively the same for an area.
bit harder on resi.
you will find the main groups at 1500 and above are cbre,landmark white,colliers,savill and they are on all the lenders panels.
hope this helps
