Revaluing assets to Increase Equity

Hi Guys,

Just wondering out there, how soon can you get a revaluation on your property.

If you buy a house, do a reno on it, is there a minimum time you have to wait before getting another valuation. I heard it was 6 months from somewhere. (maybe with regards to the banks valuers?)

I know the decision would be based upon the general inclination on house price direction, but it would be good to see how much your reno added to the property in the same property cycle you bought it in. (or there abouts). I know it will also depend on how 'equity strapped' you are.

The main reason is to increase equity in order to purchase additional properties.:)

What is the minimum time?? Is there one??

Cheers

F
 
Hi Fudge,

I was told 6 months to revalue after purchase by my mortgage broker. May be different with certain banks or other financial institutions?

Good luck :)
 
I have had them done in lesser time but to be honest half the battle in doing it earlier is convincing the lenders valuer of the increased time.

If you have good evidence of why or how the property has gone up in value then no reason at all why it shouldnt be done fairly quickly but would want a good arguement.
 
I got a revalue 12 weeks after settlement.Put a new kitchen in it and thats about it.That was with AMP




Hi Guys,

Just wondering out there, how soon can you get a revaluation on your property.

If you buy a house, do a reno on it, is there a minimum time you have to wait before getting another valuation. I heard it was 6 months from somewhere. (maybe with regards to the banks valuers?)

I know the decision would be based upon the general inclination on house price direction, but it would be good to see how much your reno added to the property in the same property cycle you bought it in. (or there abouts). I know it will also depend on how 'equity strapped' you are.

The main reason is to increase equity in order to purchase additional properties.:)

What is the minimum time?? Is there one??

Cheers

F
 
Hi Fudge,
Your financial institution will have a local panel valuer. I've tracked mine down and paid them for a private valuation service (not through the bank) to see if it's worth pestering the bank to do a formal reval. Mine only cost me $250. Maybe this is an option? If your privately paid reval shows a change, maybe you could submit the valuer's report to the bank to justify why the bank to revise their estimate.
Either way, you'll find out what you want to know - how much of a difference the reno made and what LVR room you have to move.
After a quick post-purchase reno & change-of-tenants, I had a $70k upward adjustment earlier this year - about four months after I purchased! Better than I'd hoped, and I was over the moon. If you're confident you've made a difference, it's worth leveraging it asap!
On that note, if you want to be veeeeeery confident - get advice from valuers before/when you buy for suggestions on what renos would increase the value.
Crossing fingers for you for a great result! :)
PJ
 
Something I have been wondering for some time is do people often get a private valuation before purchasing? If I could buy 40k under my private val am I correct in thinking this is a good way to make sure the property has some equity to be pulled out fairly quickly after purchase? Or does this approach cost to much time/money during the purchase process for most? Also do people do a regular val on all their properties every year/2 years to see where they are at, or do most wait for some sort of growth trigger eg RP data report suggesting growth before they bother? A lot of questions I know but I am very interested in the practicalities of these approaches.

Thanks
Scott
 
If you got a valuation done prior to purchase, it lets you know the objective proffessional opinion of the valuer at the time. If you look at the fine print, it can be plus or minus 10%, and is only valid for 3 months. ALso, the comments on the valuation may have an impact on the banks likely LVR after purchase, so thats a yes, but.
I personally keep tabs on the median prices and rental in the suburbs I have properties in, however I wouldnt go to the trouble of getting a valuation done unless the other moons aligned in terms of serviceability and bank policy enough that I wanted and awas able to go ahead for a refinance. The only other times I have done a valuation without finance is when I finished a renovation, or moved out of the property to rent it out, for capital gains tax record keeping.
 
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