TO VALUE OR NOT TO VALUE????

[WebBoard]

From: Nicole Jennings


From: NIC Jennings dzanker@ozemail.com.au
Date: Saturday, March 10, 2001 08:25 AM

HI all;
Need a bit of advice from all you great people who have been posting on this forum.My husband and I are looking at purchasing our next IP in Brisbane.We live at present in Adelaide and have a property already in Wellington Point, a brand new 4bed 2 bath house which is doing well, but has been valued $4o,000 below actual selling price. We have had several appraisals done by local agents whom have given us a much more realistic value, compared to our ANZ Banks valuation. Any way, the question I have is that we have found a property: 2bed 5yr old town house in clay field and are wondering is it better for us to get our own valuation prior to making an offer on the property, because our finance is dependent on the Clay field property valuing up to the banks valuation. Instead of wasting everyone's time, would it be better for me to get a valuation done prior to purchase, then start the price bartering??.
As we all know at present SE QLD valuers are being really difficult at the moment and really sound like they run by their own set of rules, which really effects us as investor's as the valuation even if it is way off the "real market value" inabilises us to gain further finance.

All views would be greatly appreciated, also does any one know how to obtain past sale prices of areas in Brisbane????

Sincerely,
Nic xxx

 

[Rolf Latham]

Reply: 1
From: Rolf Latham


Hi Nic

Try www.residex.com.au

Their property explorer report can give you a good guide of actual value.

Ta

Rolf

 

[Rolf Latham]

Reply: 2
From: Rolf Latham


Hi Nic

Just me again. is your finance 90 or 95 % for the IP ?

Ta

Rolf

 

[WebBoard]

Reply: 2.1
From: Nicole Jennings


Dear Rolf,
It will be 95%, using current collateral with our 2 other properties. WE were told before we decided to get the properties valued that it " would be tight", but were pleasantly surprised when we we told by the ANZ who have our other 2 properties that we could borrow to the value of $2oo,ooo.As I said earlier I was surprised because we knew what the SE QLd valuer's were like at present, so thank god our W.A property came through for us. But Qld is our prefered state for investment, thus it could be difficult with the next IP acquistion pending on how they will value it. Any suggestions would be greatful, other wise I'll keep crossing my fingers !!

TA,
Nic.

 

[Ross Sondergeld]

$360 million dollars

Reply: 3
From: Ross Sondergeld


Hi Nicole,


TO VALUE OR NOT TO VALUE ???

Nicole said, "...a brand new 4 bed 2 bath house which is doing well, but has
been valued $4o,000 below actual selling price. We have had several
appraisals done by local agents whom have given us a much more realistic
value, compared to our ANZ Banks valuation."

Well... the ANZ valuation was a "mortgage valuation". And the registered
valuer was required to value the property according to the instructions that
they were given. You might also need to understand that the two tier market
is enormous in QLD. For example...

Normally, agents would collect $ 40,000,000
But marketeers collect... $ 400,000,000

NOW THAT'S... $360,000,000 million and that's BIG MONEY. And that's over adn
above the maximum real estate commission fee in Queensland.

And to give you another example, on the gold coast there are 25,000
transactions per year. (From memory...) And approximately 4,000 plus are
two-tier deals.

So... please give the poor old valuer a chance... and maybe it's time a "mum
and dad" investors started using local agents to check teh deal.


Ross

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[WebBoard]

Clayfield Values

Reply: 3.1
From: John (Brisbane)


If you are buying your Clayfield Townhouse through an agent then ask them to produce a RPData search at a 1km radius going back say 5 years. Then you will have to take your list (about 20 pages long) to the streets and highlight all the directly comparable properties. Make minor adjustments to the sale prices so that the examples match the specs of your townhouse (thank god townhouses all seem to be the same). This will give you a very good idea of what the true market value is and what the Panel valuer will use when he determines the valuation. (BTW we should all do this for each and every purchase, you are mad if you don't)

Clayfield is a solid suburb in terms of growth and has not seen the brush of 2 teir marketing or recent unstainable price rises. If your valuer doesn't value at the contract price.

If you can not find the time to 'walk the streets' I may be able to do this for you. I happen to be going through the same process with townhouses up to 5yrs old in Clayfield-Albion-Hamilton-Hendra. If you like you can email me continuum_2001@hotmail.com