Revaluation after 2 months?

[ellie]

I am wondering whether it is worth my while having the house I bought 2 months ago revalued so I can hopefully increase my mortgage to the current valuation amount and draw down the difference to rennovate. I haven't done an awful lot to the house other than cleaning, tidying, our incomepainting. I'd guess it has increased in value by about $30K.

Also does the bank charge for doing this? I have one of those professional packages where you are meant to be able to change your loan once each year as part of the annual fee.
Also, in this process, does the bank look at your income, debts etc again, need solicitors, lots of paperwork etc

 

[Tibor]

Ellie,

I am not a broker, but my understanding that you will need at least 6 months before the bank would have another look at it, except if you've done some serious reno work on it.

As I am having absolute fun / nightmare with refinancing, then refinance the refinanced properties due to crappy valuations, I know that valuer and valuer can come up with 60% difference in just over 2 months!!! I still try figuring out how to get the valuer with the proper value to come first time around.

Tibor

 

[Aceyducey]

Originally posted by ellie
I am wondering whether it is worth my while having the house I bought 2 months ago revalued so I can hopefully increase my mortgage to the current valuation amount and draw down the difference to rennovate. I haven't done an awful lot to the house other than cleaning, tidying, our incomepainting. I'd guess it has increased in value by about $30K.

Also does the bank charge for doing this? I have one of those professional packages where you are meant to be able to change your loan once each year as part of the annual fee.
Also, in this process, does the bank look at your income, debts etc again, need solicitors, lots of paperwork etc

Ellie, 2 months is a short period of time in my view. You may have to refinance with another lender to get the extra value out.

I suggest that in future you pay careful attention to your loan docs so you know whether your banks charges for a reval - some do, some don't - but it will be in the paperwork you have.

Ditto for the documentation required.

Remember the Third Commandment of Investing. - Know Thy Own Loan No-One Will Know It For You

And live by the Second Commandment - Use A Good Mortgage Broker And Thy Shalt Have Access To A Myriad Of Options

Cheers,

Aceyducey

 

[geoffw]

Originally posted by ellie
I am wondering whether it is worth my while having the house I bought 2 months ago revalued so I can hopefully increase my mortgage to the current valuation amount and draw down the difference to rennovate.

I don't know which bank- but NAB have recently changed their polciy, and no longer allow revals within 12 months. Some sources are saying that signifcant modifications can enable a reval, but my banker is not allowing $20K worth.

 

[Jas]

Like all things, it depends.

Some bank will do it past three months, others like Geoff mentioned are 12.

Of course you might have an easier time if you goto another bank.

The money you're getting - have you included break fees & refinance/new application fees? You might find on a small amount, the refinance isn't worht it...

Jas

 

[Kristine..]

Ellie

Has your income increased since you applied for your loan?

Did your broker previously give you an estimate of how much money you could borrow from which lenders?

If so, and you have borrowed to your serviceability maximum, then an increase in value of your security asset will have no benefit to you until your income increases.

If you borrowed under your personal limit, and you really want to access extra money now, ask yourself whether it wouldn't be better to wait for twelve months and then revalue to borrow. This means only one new application / one fee / one set of financials, for potentially a larger amount of equity / loan funds.

Who knows, with your ambition, you might even be looking for an investment property 'sooner rather than later'

My point is:

Think a little further down the track rather than just getting your hands on more money right now. Renovations always cost more than you think. You could probably only access eg 80% of your guessed increase of $30,000 that is, $24,000.

The cost to do this increase, dollar for dollar, may be more expensive than you think, depending on your lender's policy.

Talk to you broker about your options at this time. Remember, that renovations always cost more - a lot more - than you think. That's worth repeating!!

Rome wasn't built in a day. You've achieved the house. Like any good strategist, stabilise your position before you expand further.

Cheers

Kristine

 

[geronimo]

Reval 2 months

Hi Ellie

There are some smaller lenders out there who let you revalue your property as often as you like(not many though)

I work for a small lender here in QLD who will let you revalue whenever you want as long as you can service the line increase.

We instruct our clients to pay the valuer a good healthy $450 too and ensure a proper thorough valuation is done, and not a quick drive-by, thus ensuring an up-to-date market val. Wheras banks instruct their valuers to value conservatively, we do the opposite and try get as good a val as possible for our clients.

The key is whether you can service the line increase and you have to stay under 90% LVR. And the only fees I can think of is the duty on the increase.


Regards

Geronimo

 

[Rolf Latham]

Hi Ellie

Unless youre with the NAB should not be a major issue.

Simply, Comes down to being able to do find comparative sales for the valuer to hang his hat on.

Ta

rolf

 

[Shaggygirl]

Acey

So what's the First Commandment?

shaggygirl

 

[Aceyducey]

Originally posted by Shaggygirl
So what's the First Commandment?

Shaggygirl,

Thy Shalt Worship No Other God Than Property



Cheers,

Aceyducey

 

[Artak]

Reval within 2 months

Hello Ellie,

If you intend to get your own valuation to establish the price, then you'll need to orgnaise your valuer and incur the cost (around $300+). When it comes to the lender, most of them have their own panel of valuers and most likely the same valuer will get to do the valuation and they in turn most likely will do a drive by valuation and come up with the same or similar price. None of those will help your case. Also I'd think the lender just will take your case out and be guided from the original valuation, unless you insist that you've done a lot of improvements to the property.
Also there will be a top up fee.