Valuation came lot less than expected

[mumbai]

Planning to buy next IP from the PPOR equity.
Market is still hot here and the ppor could easily sell for more than 700k.
Even rpdata desktop Val comes with a range from 630-700. But, the bank valuer valued it at 580k. This could really impair my chances to buy the IP.

What are my options here? Should I get an independent revaluation done? Approach another bank?

 

[Shahin_Afarin]

So you are doing an equity release against the PPOR which you are saying is worth approx $700k and its come back $580k?

Contesting is possible but statistically not in your favour and the gap seems too large. Best to order a couple of upfront valuations using different valuation firms. LEave Macquarie to last because you can pick the valuer with Macquarie.

 

[mumbai]

Which valuers you would recommend? This was via anz, done by Todd and Herron

 

[Shahin_Afarin]

Its got nothing to do with the valuation company - it is specific to the individual valuer. So if you have got one via T & D then get say CBRE, Propell, etc. Also have you paid LMI with your current lender as this may make moving to another lender much less attractive because you will lose the LMI credit paid with ANZ.

 

[Rolf Latham]

If its just an 80 % lend, and your loan is all variable some of the desktop models from CBA and AMP et al may work for you.

We have seen some rather odd outcomes infavour of a decent val, especially where the property is at or below median for the area and is somehow affected by some negatives that a human will recognise vs a black box wont

ta
rolf

 

[mumbai]

Yes, I have LMI with the current bank. That is why my mortgage broker went with ANZ.
So, in theory, I am stuck between paying LMI again and paying extra around 10k to secure next property.

This could also mean that I will be out of investments option for sometime until I gain some equity on any of the IPs

 

[Shahin_Afarin]

Get it revalued in 2 months and try and avoid this valuer next time around.

 

[Rolf Latham]

Yes, I have LMI with the current bank. That is why my mortgage broker went with ANZ.
So, in theory, I am stuck between paying LMI again and paying extra around 10k to secure next property.

This could also mean that I will be out of investments option for sometime until I gain some equity on any of the IPs

not neccesarily.

A desktop from another lender may give you such a strong result that you can get the equity you need without LMI.

Obviously if your original recentloan was at 95 % then there is little hope per se but an 88 to 90 % lend may be replaceable with an 80 on a favourable val

ta
rolf

 

[mumbai]

I have altogether 5 loans with ANZ. Three mortages and 2 equity releases.

 

[mumbai]

not neccesarily.

A desktop from another lender may give you such a strong result that you can get the equity you need without LMI.

Obviously if your original recentloan was at 95 % then there is little hope per se but an 88 to 90 % lend may be replaceable with an 80 on a favourable val

ta
rolf

I will probably give these a try.

 

[Mick C]

I have altogether 5 loans with ANZ. Three mortages and 2 equity releases.

Wow that a lot of mortgages with ANZ....you must have a good income/serviceability

You can try CBA- they do desk top val for certain areas and if LVR is under 80%..end of the day if you believe your property is worth more try a diff UPFRONT val with a diff bank and diff valuer most importantly.

 

[mumbai]

Don't have a great income unfortunately. Serviceability is fine so far, but wife will be going on maternity leave soon. This will affect the serviceability soon.
I definitely think it's worth more. A three bedder BV house on 556sqm cul-de-sac in Girraween with modern kitchen and bathroom should definitely fetch more than that.

 

[mumbai]

desktop val from CBA comes at $640K. Lot better than T&D, but will need to look how numbers stack if I decide to go with CBA.

 

[tobe]

Anyone getting stuck with valex (or is it VMS?) re assigning vals when they get a new request?

Theoretically now when you approach the second lender and order an upfront val Valex just reassigns the previous lenders val.

 

[jim1964]

Wow that a lot of mortgages with ANZ

I have 5 with ANZ,plus some others with other lenders.I didn't think my income and serviceability was that great.Maybe im doing better than i thought

 

[Peter_Tersteeg]

I have 5 with ANZ,plus some others with other lenders.I didn't think my income and serviceability was that great.Maybe im doing better than i thought

At this point your servicing will be a lot better with a few other lenders than ANZ. After about property number 2 ANZ go south fairly quickly.