When to get a property revalued?

[Mooze]

Hoping to draw on the collective wisdom of the forum

We bought our first place in December - the area its in has had significant growth since then (and we purchased at a bargain price IMO). We're also going to do some minor reno's (put down floor boards as current carpet is about 20years old and has many burns, and put in a second hand kitchen as current one is very pokey - I know I can get money back through rent on these in under 8months with the increase).

I expect the reno's to add approx 20k value (will spend less than that) and will be done in August.

Is it worth getting a valuation done for purposes of refinance in September? Or do I need to wait a year for banks to take notice of the valuation rather than the sale price?

 

[stumunro]

It depends on the lender but I do it as often as my bank permits, generally 6 months

 

[Nathan]

i would get a value done, when i need some $ from it, and i belive the property has gained enough capital to make it worth while.

 

[grossreal]

hi all
interesting question
whats the shortest time someone has purchased and revalued.

 

[Nathan]

i did after 3 months last year, and 60 days at start of this year.

 

[SupaRex]

I get mine revalued as soon as the bank allows, which, unfortunately, is only once a year . I'm with the NAB.

Can anyone tell me how often the other big four allow re-valuations?-

 

[GZM]

Lmi?

What would happen if you had a property with, say, 21% equity and a mortgage to the value of 79% of the value. You then had the property valued a year later, its price has dropped and the mortgaged amount is now, say, 85% of the value of the property.

Does the lender have any right to require you to pay LMI?

 

[steveadl]

CBA let's me revalue when I want, but obviously I only do it when I know the values have increased from the last round.

It's also convenient as I can leave out a house if I know the last valuation done was quite generous and it may risk coming down a bit, or I know that it's experienced no growth. As long as there is a valuation on each property within the last 12 months, I can get individual ones revalued when I like.

Shortest time for me would have probably been the round just passed. One of the places was bought in Oct. last year, and had it revalued last month.

 

[Gools]

What would happen if you had a property with, say, 21% equity and a mortgage to the value of 79% of the value. You then had the property valued a year later, its price has dropped and the mortgaged amount is now, say, 85% of the value of the property.

Does the lender have any right to require you to pay LMI?

Simple answer to that one. Get an independant valuation done and if it dropped in value don't tell your bank.

Gools

 

[grossreal]

hi gools
interesting answer.
and my question would be if you thought the property had dropped in value then why would you be going to increase your loan.
in this case you are the decider when to get a valuation done and unless you thought it had gone up why would you do it.
not to sound funny but as kenneth says on the end of each of his posts here to learn the motive behind why you would value in a fallen market or a market you thought had fallen.
value on a rising market only or at a crest

 

[Gools]

Gross, exactly right, no point in getting a valuation if you think/know it has dropped in value. My answer was based on safe-guarding yourself in case the valuation is unexpectedly less than its previous value before.

Gools

 

[grossreal]

hi gools
I get my properties revalued each 5 years when drawing out equity.
but I am very interested in the shortest time from purchase to refinance that anyone has acheived.
technically is the next day if you bought way under value but has anyone done it and what are the short falls.
can't have break costs if the loan is higher but there would be legal costs involved and has anyone done it in say with 3 weeks.

 

[oracle]

How often should I get a valuation done?

That depends on how confident I am with the increase in the value. I guess you should get it done as often as possible.

But that is only one half of the equation. The other half is what's the minimum equity increase (percentage wise) you should aim for before you decide to get a valuation done.

I think the minimum equity increase I would aim for is 10%. Once I am confident of getting that I would get a valuation done ASAP.

Regards,
Oracle.

 

[Nathan]

60 days is my shortest.

 

[firstmillion]

How long is a valuation valid for ?

Question may be relevant to the topic, how long is a valuation valid for ?

cheers