Revaluations < 6 mnths

From: Paul Roberts


My query relates to valuations on value added property and time frames.
If you purchase and renovate/increase a value of a property when and how can you realise a higher valuation to power on? My understanding is that the valuation of a property at purchase is valid for 6 months. If there is improvement to the value of a property prior to six months, how do you get a bank or valuer to increase their valuation? If you use another valuer off the banks list, will they assess the property on its current merits or take into account/use the previous unimproved/< 6 mnth valuation?
I have considered using 1 bank to purchase and then change camps when finished, but due to fees this seems ineffective cost management and who's to say the next banks valuer will not use the last purchase price.
Any experienced campaigners have a solution to this problem?
 
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Reply: 1
From: Jas


> From: "Paul Roberts" <rambada@primus.com.au>
>
> My query relates to valuations on value added property and time
frames.
> If you purchase and renovate/increase a value of a property when and
how
> can you realise a higher valuation to power on? My understanding is
that
> the valuation of a property at purchase is valid for 6 months. If
there
> is improvement to the value of a property prior to six months, how do
you
> get a bank or valuer to increase their valuation? If you use another
> valuer off the banks list, will they assess the property on its
current
> merits or take into account/use the previous unimproved/< 6 mnth
> valuation?

A court has just ruled on this. It states that a valuation should only
hold for three months, especially in a rising market

http://www.propertyinsider.com.au/echo/webnews.cfm?fullstory=339&periodi
d=50

Jas
 
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Reply: 2
From: Rolf Latham


Hi Paul

Lenders and therefore their valuers generally take a very pragmatic view on this - prove it to me and they will usually play ball without having to jump camp, (something brokers HATE to do anyway)

If the vals are managed and work has been done it is possible to reval at ANY time after purchase to pull equity. Recent ones of note in our client portfolio include:

1. 95 % LVR at 130 purchase, refinanced to 95 % of 190 k within 17 weeks

2. 95 % LVR at 448 purchase, refinance at 85 % of 700k within 20 weeks ( val came in at 700 but still having fun with LMI people)

3. 90 % LVR at 409 purchase refinance at 90 % of 500, though val cam in at 520, LMI piked at 500 k.

Ta

Rolf
 
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