Help on Property Valuation

Discussion in 'Property Investment - Other' started by abagail, 14th Jul, 2013.

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  1. abagail

    abagail Member

    Joined:
    14th Jul, 2013
    Messages:
    3
    Location:
    singleton, nsw
    Hi All - I was referred to this forum, and from reading the threads, everyone certainly seems to have a lot of property experience!

    I purchased my home 2.5 years ago - and borrowed 100% with 20% guaranteed by my parents. I purchased the property for $268K but the property was valued at $280K.

    I now owe 80% of the valued price (so less that $224 K) so wanted to remove my parents as guarantors (they were reluctant at best). I also thought this would be a good opportunity to refinance as I did not have many choices due to needing to borrow 100%.

    Anyway - does anyone have any tips on how to get the best valuation. I'm worried as I'm in the process of diy-ing the garden (back and front) - so it's a bit of a mess (removing the grass and turning into low maintenance native gardens). As a positive, I have added a solar system (1.5 kW) to the house. House prices on re.com.au for similar places (2brm houses) seem as good as when I bought despite the mining downturn.

    Is it worth paying for reports of myrpdata.com.au??

    I don't need an increase in value, just the same value - if it has decreased at all, I don't have much wiggle room in terms of the 80% LVR....

    I've never been through a valuation before - so advice on if I should delay for as long as possible and fix up the garden as much as possible and clean like crazy - or if its not really going to matter would be really helpful.

    Thanks!
     
  2. Rolf Latham

    Rolf Latham Member

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    2nd Mar, 2001
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    Location:
    Confused = Sydney, Brisbane and Gold Coast
    Try an upfront VAL with the lender u are currently with

    In addition most brokers have some form of rp data or residex to do a sort of a desktop VAL which may give an indication but can't really be solely relied upon

    Ta

    Rolf
     
  3. Brady

    Brady Big 4 Banker

    Joined:
    19th Jun, 2012
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    Location:
    Adelaide
    What is wrong with your current lender?

    Why do you need to change?

    Is just releasing your parents property an option? Your current lender may not even request a valuation for this.

    Valuation will be based on comparable sales in the area, have a look for properties that have sold (not for sale) that are close by and similar.
    Note if your property is in the process of renovations valuer will likely note this and provider a lower valuation... Sometimes they are very harsh on valuation when work/renos are incomplete

    Also extra note I've yet to see solar increase the value on a bank valuation
     
  4. abagail

    abagail Member

    Joined:
    14th Jul, 2013
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    3
    Location:
    singleton, nsw
    Nothing particularly wrong with my current lender - I was just hoping to get a better rate. Due to borrowing 100% of the purchase price, I was limited with options at the time of borrowing

    I can release my parents property with my current lender - however I do need a valuation which I need to pay for (and other fees).

    If I apply with ubank - the rate is much better, and there is no application fee.

    It's a pity about solar not increasing the value - it does decrease my power bill - so it certainly has value for me!

    Thanks for the advice about stuff in progress, I might drag the process out a bit so I can get the garden tidied up - hopefully that will get me through.
     
  5. Aaron_C

    Aaron_C Finance Broker

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    11th Jun, 2011
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    12,670
    Location:
    Melbourne, Victoria
    Yeh ubank looks like the obvious option to me too
     
  6. Rolf Latham

    Rolf Latham Member

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    Location:
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    Bank won't do an upfront VAL...so u take ur chances

    As an aside, what will u do with your current place when u upgrade?

    Ta

    Rolf
     
  7. abagail

    abagail Member

    Joined:
    14th Jul, 2013
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    Location:
    singleton, nsw
    No idea yet - I'll be staying in this place while I still have this job (so for the next year or two at least then it will depend on the market I suppose.

    It seems like a nice place to have an investment property (despite the mining downturn around here at the moment) - but I'm not sure how much Coal is left in the region. A few expansions seem to have been knocked back due to environmental or community concern. If too many mines start finishing up, I think property prices and/or rents will fall too much for my liking.
     
  8. Rolf Latham

    Rolf Latham Member

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    Location:
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    clearly then, U bank isnt an option for you since they dont have an offset facility.

    Im assuming you can pay more than the minimum repayment on an IO loan

    ta
    rolf