Strategy for portfolio review

Discussion in 'Property Finance' started by gw83, 29th Oct, 2013.

  1. gw83

    gw83 Member

    Joined:
    22nd Jul, 2010
    Messages:
    32
    Location:
    Sydney, NSW
    Hi,

    Our property investing strategy is to buy and hold and accelerate wealth through renovating.

    Currently we own 2 properties in Sydney, worth approximately 1.1M. One is in need of a major cosmetic reno, the other could do with a minor within 5 years (kitchen, 2 bathrooms, floorboards).

    As well as using renovating to create equity to purchase future properties, we would also like to take advantage of capital growth to fund future purchases wherever possible.

    We believe a good strategy to take advantage of re-investing any capital growth is to review our portfolio at least once every 12 months.

    We would like to get people's thoughts on the best way of doing this.

    Previously we have asked our mortgage broker to arrange valuations.

    So far this seems to have worked well. We believe they get a good price as they order quite a few valuations, and also, on our last purchase they negotiated on our behalf to increase the valuation by $35K, as we had agreed on a price $35K above the original valuation, which we thought came in a bit low. We kind of like having our mortgage broker for extra negotiating power, as valuations are so important - poor valuations can limit your ability to grow your portfolio sooner.

    Alternatively, would it be better to organise our own valuations to have direct contact with the valuer for negotiating?

    We would love to hear other people's experiences with getting portfolio's successfully revalued to release equity.

    Thanks :) ,

    Grant
     
  2. Rolf Latham

    Rolf Latham Member

    Joined:
    2nd Mar, 2001
    Messages:
    18,791
    Location:
    Confused = Sydney, Brisbane and Gold Coast
    Hi Grant

    Tough to "negotiate" much with a valuer we have found ............. in some rare cases there is a little wiggle room where youmay have been able to dig up some obscure comparable sale, but in general, we apply the NEXT approach with valuastions in a market like most of Sydney and simply do a couple more vals with other lenders/valuers.

    Obviously a HEAP depends on what your total circumstances are, eg LMI fixed rates, credit policy niches, and you may need to stick with one valuer, where youd better get it right first time

    ta
    rolf
     
  3. Aaron_C

    Aaron_C Finance Broker

    Joined:
    11th Jun, 2011
    Messages:
    12,670
    Location:
    Melbourne, Victoria
    The only way is to really get a valuation done with different lenders, and in some instances you can pick your preferred valuer too if you know a particular firm/person is quite accurate.
     
  4. gw83

    gw83 Member

    Joined:
    22nd Jul, 2010
    Messages:
    32
    Location:
    Sydney, NSW
    Ok great thanks for the advice Aaron & Rolf.
     
  5. jonmardell

    jonmardell Mortgage Broker

    Joined:
    23rd Nov, 2010
    Messages:
    546
    Location:
    Brisbane
    With regards to valuers it does not hurt to meet them during the inspection and have some very recent comparable sales that they might not other wise use and any renovations is a good idea to list them and have receipts available.
     
  6. gw83

    gw83 Member

    Joined:
    22nd Jul, 2010
    Messages:
    32
    Location:
    Sydney, NSW

    Thanks Jon good points, I like it. :)