I am with NAB and about 10 months ago I had all of my properties revalued. The numbers came in good, about what I thought.
As the policy at NAB has been to use valuations that are less than 1 year old, I used these figures to make some investing decisions.
Now, just this week when I went to draw on the equity I have built up, I have found that NAB have changed from an Internal valuation process to using external companies and have mandated a full valuation across on all securities regardless of when the last valuation was done.
My valuations are coming in significantly lower. For example, a 13-15% drop in a median priced Toorak apartment and Narre Warren house. RPData et al don't report a drop anything like that, in fact, the average of all the ~4 major reporting agencies report a 1% rise in Melbourne Metro average last year.
What I believe has happened is the internal valuers at NAB were a little optimistic and the external valuers are ultra conservative. I say ultra conservative because they are suggesting an 'Wakelin's choice' Toorak 2 bedroom apartment has grown $30k on what I paid for in in 2007 FIVE YEARS AGO. The net effect is a ~13-15% drop across the board for my properties.
I am now going to move all of my NAB business to another lender, however as NAB took so damn long (7+ weeks of constant hassling) to arrange these loans I am now due to settle on a property where I need to pull $50k from thin air by Friday! Might have to go speak to the Mafia or something.
A warning for everyone - if you want to lock in your gains draw your loans up now! Consider putting the gains into another bank. I wish I had when I had the valuations.
As the policy at NAB has been to use valuations that are less than 1 year old, I used these figures to make some investing decisions.
Now, just this week when I went to draw on the equity I have built up, I have found that NAB have changed from an Internal valuation process to using external companies and have mandated a full valuation across on all securities regardless of when the last valuation was done.
My valuations are coming in significantly lower. For example, a 13-15% drop in a median priced Toorak apartment and Narre Warren house. RPData et al don't report a drop anything like that, in fact, the average of all the ~4 major reporting agencies report a 1% rise in Melbourne Metro average last year.
What I believe has happened is the internal valuers at NAB were a little optimistic and the external valuers are ultra conservative. I say ultra conservative because they are suggesting an 'Wakelin's choice' Toorak 2 bedroom apartment has grown $30k on what I paid for in in 2007 FIVE YEARS AGO. The net effect is a ~13-15% drop across the board for my properties.
I am now going to move all of my NAB business to another lender, however as NAB took so damn long (7+ weeks of constant hassling) to arrange these loans I am now due to settle on a property where I need to pull $50k from thin air by Friday! Might have to go speak to the Mafia or something.
A warning for everyone - if you want to lock in your gains draw your loans up now! Consider putting the gains into another bank. I wish I had when I had the valuations.
