HTW Month in Review for May

[Rixter]

HTW Monthly Australian Property Market Report for May

In this edition:

Feature - Construction costs in a GEC
Residential
Commercial - Office
Contacts
Rural
Market Indicators

Herron Todd White offers a national network of offices providing
Independent Property Valuations, Building Inspections, Market Research and
Tax Depreciation Schedules.

We trust you enjoy the May edition and invite you to provide feedback.

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Enjoy!

 

[craigb]

Good read

The HTW review is a good read but this company did not value my home any where the figures they quoted, in their review.

 

[Rixter]

The HTW review is a good read but this company did not value my home any where the figures they quoted, in their review.

Did you commission them to conduct a full valuation on your property?

 

[craigb]

sure did, and the numbers came in at, 1,100 mtr, and the review states that it should have been heigher, and more if the ceiling heights were 3m as are mine?
i sent 3 pages of comparisons , being for "all" previous sales in the suberb,
I divided them as such, eg, house sold ie $800k less UCV of 400k home was 300sq so thats, $1,333 m2 , finishes fair , built 78 garaging 2, bath 2

i did this with all sales inthe area, showed them, showed the mediam, on m2
and they returned with we see and understand where your coming from, but we are not changing the value? it came in at$1000 m2

The realy anoying thing was the home down three doors was 300m2 un finished , no yard and the ucv was 100k less, sold for $1,070,000 three weeks b4, and this home is 700m2 3m ceilings,6 car garage, 4 baths with massive views?? i can't work it out?

 

[Rixter]

Whats the purpose of your valuation?

 

[craigb]

Whats the purpose of your valuation?

Two reasons , 1, to see the capital gains on my work, 2, draw down a loan to advance forward in a property portfolio.

 

[RumpledElf]

How does ceiling height affect stuff? I find higher ceilings to be really annoying, you can't reach them off a normal ladder so things that should be trivial become an arduous task. Like taping 3 broom handles together to reach your cobwebs that with normal ceilings you could do with a regular extension cobweb brush. And replacing smoke alarm batteries? Forget it unless you own your own scaffold. Easier to stick a new one to the wall nice and low so you can REACH it.

Refusing to go over 12 foot ceilings in any future purchases. 10 would be even better. I have friends with 12m (yes, metres) ceilings that desperately need repainting and repairing from old water damage and they can't get up there without specialised scaffolding ...

 

[Rixter]

Two reasons , 1, to see the capital gains on my work, 2, draw down a loan to advance forward in a property portfolio.

In the case of refinancing then, your bank should have commissioned the valuation , not you.

Can you clarify things here - Did you commission them or did the bank send their valuer (HTW) out??

 

[craigb]

st george bank did the vals.

 

[Rixter]

Did you commission them to conduct a full valuation on your property?

sure did, and the numbers came in at, 1,100 mtr, and the review states that it should have been heigher

Whats the purpose of your valuation?

Two reasons , 1, to see the capital gains on my work, 2, draw down a loan to advance forward in a property portfolio.

In the case of refinancing then, your bank should have commissioned the valuation , not you.Can you clarify things here - Did you commission them or did the bank send their valuer (HTW) out??

st george bank did the vals.

Why did you say you commissioned the valuer then

You have got 2 different valuations because the valuers were commissioned for different purposes. ie Finance Valuation & Fair Market Valuation. Of coarse they will be different.

Hope this helps.

 

[Francesco]

st george bank did the vals.

The banks are refinancing on fire-sale valuation at the moment if my talk with WBC is any indication. In normal times, valuers will value lower as per bank's instruction but will loosen if they want your business.

 

[craigb]

Why did you say you commissioned the valuer then

You have got 2 different valuations because the valuations are for different purposes. ie Finance Valuation & Fair Market Valuation. Of coarse they will be different.

Hope this helps.

Because they sent me the bill!

I requested the new val, st george ordered it and i paid for it!

 

[Rixter]

Because they sent me the bill!

I requested the new val, st george ordered it and i paid for it!

Does the valuation give you enough to redraw and move forward with still?

 

[craigb]

NO it did not,

 

[Rixter]

NO it did not,

Then you're stuck between & rock and a hard place.......unless you can manufacture enough equity and/or cash for a deposit elsewhere??

 

[Ausprop]

How does ceiling height affect stuff?

well 12m is a bit crazy but there is obvioulsy a huge diff in cost between building a 2400 ceiling and a 3000 ceiling

 

[Ausprop]

From the Perth section:"We would anticipate that costs in
this sector of the market should begin to decrease in line
with reduced demand as builders tighten their belts and
reduce profit margins and/or source cheaper labour from
an increasing supply."

think again boys... the architectural firms are at capacity. designing schools, libraries etc etc. There is NO anticipated reduction in building costs.

 

[Ausprop]

"As a general note, we as a business are very concerned
with building costs right now as a large chunk of our
office burnt down last week, so the costs of repair appear
quite relevant"

good.... might pull your head out of the clouds and you may understand what it costs to build a house. Some valuer said that this house...

http://www.realestate.com.au/cgi-bi...er=&cc=&c=86928709&s=wa&snf=rbs&tm=1241312684

would costs $450k to replace. Try $750k if you are lucky.

Valuers seem to fall into the same bucket as real estate agents... yeh here is a $200k block of land and just slap a house on for $150k - happy days.

 

[Ausprop]

sure did, and the numbers came in at, 1,100 mtr, and the review states that it should have been heigher, and more if the ceiling heights were 3m as are mine?
i sent 3 pages of comparisons , being for "all" previous sales in the suberb,
I divided them as such, eg, house sold ie $800k less UCV of 400k home was 300sq so thats, $1,333 m2 , finishes fair , built 78 garaging 2, bath 2

i did this with all sales inthe area, showed them, showed the mediam, on m2
and they returned with we see and understand where your coming from, but we are not changing the value? it came in at$1000 m2

The realy anoying thing was the home down three doors was 300m2 un finished , no yard and the ucv was 100k less, sold for $1,070,000 three weeks b4, and this home is 700m2 3m ceilings,6 car garage, 4 baths with massive views?? i can't work it out?

did you insist that the home three doors down be listed as a comparison?

I undertand your frustration... they take what it should be worth, knock say 20% off to cover their back sides and then work furiously to pick yours to bits and justify why your property should come in so low. plus they want payment before they release the report, so you can't hold that over them.

I would love to see a really big legal claim against a valuer for low balling! it seems to easy for them to do it.

 

[josko]

"As a general note, we as a business are very concerned
with building costs right now as a large chunk of our
office burnt down last week, so the costs of repair appear
quite relevant"

good.... might pull your head out of the clouds and you may understand what it costs to build a house. Some valuer said that this house...
http://www.realestate.com.au/cgi-bi...er=&cc=&c=86928709&s=wa&snf=rbs&tm=1241312684

would costs $450k to replace. Try $750k if you are lucky.

Valuers seem to fall into the same bucket as real estate agents... yeh here is a $200k block of land and just slap a house on for $150k - happy days.

LOL!

I have stopped taking these reports seriously, just as I have API's RP Data etc.

Always good for a quick read but generally not reliable.

It is quite infuriating for us investor's, as in Craig's situation, when valuers rely on any of this data.

I had a house under valued by over 100k once because there were no recent sales within the immediate area. The valuer compared my beachside property on two inferior properties that were three streets away.

Just incredible.

Regards Jo