Finance

[WebBoard]

From: Mike .


Borrowing
From: Frode ([email protected])
Date: 8/28/00
Time: 7:55:29 PM

Hi all,

I'm wondering if the following scenario is likely to be possible: The property is valued at (say) $200000. You manage to put through an offer for $160000 (desperate seller)

Could you borrow the full $160k (LVR of 80%) or would the lender only give you 80% of $160k, ie $128k ?

I'm assuming the lender would require you to disclose the sale amount. (They look through the paperwork, right?)

As I haven't been involved with any purchase of property, I turn to you, the tribal elders for advice...

Cheers, Frode

 

[WebBoard]

Lorne

Reply: 1
From: Mike .


Re: Borrowing
From: Lorne
Date: 8/30/00
Time: 5:16:56 PM

I recently purchased a property for $232,000. The property was valued by the bank at $300,000. The bank calculated LVR on the valuation ($300,000) enabling me to borrow 100%.

 

[WebBoard]

Katrina D

Reply: 1.1
From: Mike .


Re: Borrowing
From: Katrina D
Date: 8/31/00
Time: 8:59:10 AM

Could you please tell me which Bank recognised the value of the property over the purchase price? All of the postings I have read so far have claimed the bank will take whichever value is the lessor amount, namely the purchase price.

Thanks, Katrina

 

[WebBoard]

Lorne

Reply: 1.1.1
From: Mike .


Answer for Katrina
From: Lorne
Remote Name: 203.25.159.4
Date: 06 Sep 2000

Sorry all, I'm having a little malfunction replying to old posts.

Katrina, you asked which bank lends 80% of valuation even if it is more than the purchase price. Personally I thought every bank would, but obviously not! Bankwest (West Australian) lent me 80% of valuation, which was far greater than the purchase price for a property I purchased in Mittagong NSW.

** A recent experience of mine **

Note - Banks CAN give you money even though they say they cant.

I went to bank for an extention of my equity line (scabby $8,000) to give me enough for a deposit on an IP. They say no! You have changed jobs too many times in the past 6 months (I moved to another town. Every job change was for more money.)

I decided they could shove it. I got an interview and application with a different bank. They were prepared to extend my equity line an extra $30,000 just to get my business.

I decided to give my bank one last chance.

After being put on hold and transfered to 3 different departments, enough was enough. I politely said with a touch of sarcasm to the young lady from the bank, "why don't you just put me through to someone who makes decisions. Someone who can say yes or no, so I can come or go. It would save us all a whole lot of time and hassel". Next thing I know I'm being told I'm a valuable customer and they don't want to lose me (bla bla bla) don't change banks we'll see what we can do.

By some sort of miracle they can now not only extend my equity by $17,000 but also lend up to $250,000 for the purchase of another property.

????????????????????????????????????????????????????????????????????????????????????????????????????

Conclusion - Bank johnies are for the banks protection not yours. Try to turf them and go all the way.

I'm off to Perth to go shopping.

Totally confused, Lorne.

 

[WebBoard]

BradH

Reply: 1.1.1.1
From: Mike .


Re: Answer for Katrina
From: BradH
Date: 06 Sep 2000
Time: 09:57:28

I have the same experience with insurance companies... its too much for them to be proactive and help existing customers. They'd rather be reactive as most people aren't prepared to do the leg work. Profits for them mean less profits for you.

 

[WebBoard]

Gee Cee

Reply: 1.1.1.1.1
From: Mike .


Re: Answer for Katrina (Which Bank)?
From: Gee Cee
Date: 07 Sep 2000
Time: 14:24:11

Just out of curiosity who were you banking with?

I am about to dump one of the main banks I deal with at the moment. Not North, South, East But W......

Sick of their changing business banking managers. Six different people in 3 years. The guy I have now has taken a week to even phone back. His attitude is that "I am a business banking manager and you only deal in residential."

He has not even looked at the file. Thinks I am talking one unit, not whole blocks.

So I am going to split $ 650k of loans amongst a few other banks and building societies.

I have found already that they will do more in a day than my trusty business banking manager has done all year.

That's my experience. Gee Cee

PS: Once it is all settled I may post a letter to the senior management and find out why my business is not wanted!!!

 

[WebBoard]

Lorne

Reply: 1.1.1.1.1.1
From: Mike .


Re: Answer for Katrina (Which Bank)?To Gee Cee.
From: Lorne
Date: 14 Sep 2000
Time: 22:48:33

Bankwest (Bank of Western Australia). They are currently branching into the Eastern states. Probably not under the name of Bankwest. I only got the Royalty after it came to crunch time. If you want names and numbers then E-mail me at [email protected]