Valuations

[Magnet]

Hi All,
We are relying on equity gain to buy our next IP. Currently have 2 IP's. 1st is a 2 bed unit in Mona Vale, NSW, 2nd is a 3 bed house in Woodridge, QLD. Valued the 1st to buy the 2nd which settled in August, 2014. Broker has advised that we will only be able to value the 1st property again as the bank will rely on their purchase valuation for Woodridge. The major problem we are facing is we weren't happy with the last valuation on the Mona Vale unit. We feel the valuer got it wrong. We were expecting $700,000 to $750,000 and got $675,000. We had a friend (broker with a different bank) do a computer generated estimate that came back at $705,000 prior to the $675,000 valuation. The broker has booked an upfront valuation and the valuer is the same person from CBRE. Any valuable valuation advice from the forum?

 

[Jamie M]

Hiya

What's the LVR on Mona Vale?

Are any loans against it fixed?

If the LVR is less than 80%, there's no fixed loans and you didn't pay LMI previously then it might be worthwhile ordering a couple of valuations and going with the one that produces the highest result.

Often when you order two vals via two different lenders - you end up with two different valuers.....and rarely do their valuations come back the same.

Cheers

Jamie

 

[Magnet]

Hi Jamie,
LVR on Mona Vale is around 73% from my rough calculation. For Woodridge we paid a couple of thousand LMI so not 80% - around 88 to 90 from memory. IO variable for both loans. Both financed with St George.
Thanks, Magnet

 

[Jamie M]

Ok cool - with Mona Vale, it might be worthwhile ordering another upfront valuation via a different lender. If it comes in higher than the STG ordered valuation - you might be able to access more equity.

You'll need to refinance - but the cost of doing so should outweigh the additional equity you can unlock.

Cheers

Jamie

 

[Rolf Latham]

90 days since last val would normally be enough to do n upfront val of woodridge

ta
rolf

 

[Redom]

One more bit of advice, while your using a couple valuers, mix your valuations up between desktop/kerbside ones and full valuations. I've started noticing some good results with the automated valuations relative to the full ones. Could be a worthwhile option to extract that bit more equity out. Basically something similar to what your friend provided you - just one that you can use to borrow money.

Cheers,
Redom

 

[Magnet]

Thanks for all your replies. We only need around $35,000 for a total of $50,000. We have some surplus cash we can chip in. Only after a SEQ cheapie! So from all your advice and what I have already researched on the forum. We'll go ahead will the onsite upfront val. I'll prepare some info for the valuer on comparables etc to back up what we think it's worth. If no joy, we'll push for a valuation on Woodridge and get a few different lenders to do desktop/kerbside etc until we get the figure we need. If we do go down the refinance path with a new lender what's a rough guide of the cost?

 

[Magnet]

our valuation came back today for our Mona Vale unit. Valuation of $710,000 happy with that. Gives us enough for another SEQ cheapie with prospects. Thank-you all for your advice. Extra thanks to Rolf for the reports you PM'd. Giving the valuer a few examples of sales may have pushed us across the line. Can't believe how important it is to be there with the valuer and to do a bit of basic stuff to style the place up also. Last valuation the tenant had the place looking dark, full of clutter and had one of the blinds closed. The same valuer didn't realise we had 2 balconies!

 

[Jamie M]

Awesome news Magnet - good result!

Cheers

Jamie