I'm still new in property investing. Just need some advice from you experts out here.
Recently I got a property for A$373.5K. I have already paid the 10% and my settlement date is 1 September 2008. I am getting a loan from St. George Bank. During their valuation, they value the property to be A$365K. The bank has allowed me to loan 25%. So instead of A$280K (25% of A$373.5K), I can only loan A$273K. That means I have to come up with the additional A$7K.
Here are my questions.
1. Am I making a bad deal in this investment since I am getting the property for A$373.5K while the exact value is A$365K? My first thought about this is "****! I am cheated!"
2. Is there any options I have now other than to proceed with the loan of A$273K and come up with the additional A$7K in payment?
3. Is it possible to look for another loan company and hope that the other company's valuation will be higher? Or it will not make any difference in the property value whether one company make the valuation or the other company?
4. Is it possible to negotiate with the price of A$373.5K with the agent now that I have already paid the 10%?
Hope you guys can help and give me some advice. Thanks!
Recently I got a property for A$373.5K. I have already paid the 10% and my settlement date is 1 September 2008. I am getting a loan from St. George Bank. During their valuation, they value the property to be A$365K. The bank has allowed me to loan 25%. So instead of A$280K (25% of A$373.5K), I can only loan A$273K. That means I have to come up with the additional A$7K.
Here are my questions.
1. Am I making a bad deal in this investment since I am getting the property for A$373.5K while the exact value is A$365K? My first thought about this is "****! I am cheated!"
2. Is there any options I have now other than to proceed with the loan of A$273K and come up with the additional A$7K in payment?
3. Is it possible to look for another loan company and hope that the other company's valuation will be higher? Or it will not make any difference in the property value whether one company make the valuation or the other company?
4. Is it possible to negotiate with the price of A$373.5K with the agent now that I have already paid the 10%?
Hope you guys can help and give me some advice. Thanks!