Post-reno revaluations?

Hi everyone,

Blasters thread raised and interesting question part way through about reno-revaluations, so rather than hijack the thread...

I'm preparing for an IP purchase soon and it will most likely a reno and revalue over 4+ weeks.

What's the difference in lenders ability/desire to revalue your IP after a 4-6 week reno and lease? (i.e. once you've got a tenant in place and your monthly interest and rent are sorted and you know how much you can draw down in equity for another deposit and remain easily serviceable).

Are big 4, minor banks, other lenders similar, vastly different, or is it really hit and miss?

I assume they should be able to tell me yes/no prior to loan application if they will or won't revalue or have revaluation waiting periods etc. How reliable is this verbal agreement? I can't imagine banks would refuse to charge you another revalue fee?

What other tips on improving reno/revalue/redraw do some of you who have done this a few times, use? The more detail the better. :)

Thanks in advance.
Generally, they will re-value if you need the higher amount to complete the loan. You will need to advise you have completed renovations to justify doing a new valuation.

It sometimes depends on what valuation method was used originally as a short form , kerside or desktop valuation may have been used.

If it is a purchase, they may just use the purchase price.

So not really hit and miss, just need to explain it when applying for the loan.

Let your MB take care of it.
Much really depends on 2 things

A new white picket fence and a purchase price well below market is usually not enough to convince a valuer of the increased valuer.

Most lenders will demand the same panel valuer does the val if its within a short time frame.

There are ways around that, and even pre GFC days, it sometimes meant u had to actually refinance a few weeks after the initial settlement to get a decent val.

there its important to look for ow LMI and/or exit costs

Yeah, my expectation of a reno is a full paint/floor/doors/fittings to move it from an 'old place' to a 'new place' (at least in the eyes of potential tenants).

Many posts about reval's just say reno'd and had it revalued, I guess like you say the last resort would be pay exit costs and refinance in place of revalue.

My current lender gave my current PPOR the contract price for valuation, on gut feeling I wouldn't expect them to favor revaluation now for much difference but I might ring and see how agreeable they are to it.

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I've had bankwest revalue a property 8 months after purchase and only half way through a reno ....... came through well.