From: Rolf Latham
Hi all
A reply to a post below really got me warmed up. I think this is my first actual posting for a new thread. I have been waiting for a little while to reply to someone elses on a similar topic but wait no more, there is equity at peril.
Recent experience has shown me that the valuation you generally get from a lender when refinancing is usually 5 to 15 % short of where it could be, because you get what you ask for.
This is because applicants for finance generally have no idea what their properties are really worth. Surprising for the current market but most applicants are underestimating their property values.
Three recent experiences one at 205, really worth 230, releasing an extra 22 500 equity, thereby providing 100s of thousands of geared investment opportunity.
Another at 515 estimate actual 570 and another at 370 worth 420. While these figures dont sound huge, with a 90 to 95 % loan you can control some serious property.
If you want to milk the equity in your properties properly you really need to the homework to ensure you are getting the right value.
This homework might take you 20-40 real hours, but at say $ 500 per hour it might be worth it ? Use Residex, RP Data, use rumours, use open houses, auction results, whatever you can find that supports your cause.
To get a lender to believe it, YOU first need to believe it.
Ta
Rolf
Hi all
A reply to a post below really got me warmed up. I think this is my first actual posting for a new thread. I have been waiting for a little while to reply to someone elses on a similar topic but wait no more, there is equity at peril.
Recent experience has shown me that the valuation you generally get from a lender when refinancing is usually 5 to 15 % short of where it could be, because you get what you ask for.
This is because applicants for finance generally have no idea what their properties are really worth. Surprising for the current market but most applicants are underestimating their property values.
Three recent experiences one at 205, really worth 230, releasing an extra 22 500 equity, thereby providing 100s of thousands of geared investment opportunity.
Another at 515 estimate actual 570 and another at 370 worth 420. While these figures dont sound huge, with a 90 to 95 % loan you can control some serious property.
If you want to milk the equity in your properties properly you really need to the homework to ensure you are getting the right value.
This homework might take you 20-40 real hours, but at say $ 500 per hour it might be worth it ? Use Residex, RP Data, use rumours, use open houses, auction results, whatever you can find that supports your cause.
To get a lender to believe it, YOU first need to believe it.
Ta
Rolf
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