From: Anonymous

Hi fellas,

I found a positively geared property outside Melb that costs $179K and it got valuated by the banks valuator for $170K. Because it has 4 properties in 1 block (not strata titled), I found a bank that would lend 80% only. The contract was "subject to finance" but since it's just now valued at $170k what other options can I offer the vendor? I believe the vendor wouldnt go down to $170K. Any of you experienced investors have any ideas?
You're response will be greatly appreciated.

Thanking you in advance,
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Reply: 1
From: Michael G


Show the Vendor the valuation, explain their doesnt match the REGISTERED valuation's view.

Tell them you'd be more than happy to pay for what its worth.

I found a property asking for $96k, valuation came in at $87k, we ended up agreeing to $91k, which was within my criteria.

Or if the cashflow supports it, say you're happy to pay the extra $9k over val, as long as you can pay on your terms.

Ask for a 25yr loan to pay back the $9k at interest equal to your mortgage.

Then if they want the money sooner, negotiation a "discount" for payment in advance. In they want it in half the time, HALVED the number $4.5k, if they want it sooner, then bigger discount. If they want it tommorrow, pay them $1 :)

Just a thought.

Michael G.
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Reply: 1.1
From: Anonymous

Thanks Michael!!
I'll give it a go!
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