Browse Forums Building A New House Re: Land and house valuation 11Mar 31, 2017 6:03 pm mafu1983 TheGirlie mafu1983 Hi everyone, we just signed our final contract with our builder. We just had valuation done and have been told it is $40000 under, has anyone experienced this before? We have ordered another one and hopeful it will come back at price. Yep ours came back $42,000 below cost. It depends a lot on where you're building and your land value - we're building quite a premium home in a not so premium area, so we knew that we would be over capitalising and probably won't break even for 4 or 5 years (northern suburbs of Adelaide). The bank looks at potential resale and their risk if they have to sell the house quickly (sounds horrible I know but that's how the banks see it!) Thanks TheGirlie, can I just ask how you managed to settle your situation , did you go ahead and just pay the extra out of your pocket or did you just decide to build somewhere else? Hey mafu, it sounds silly but we took out a personal loan to make up the difference the broker actually suggested to do it and the bank had no problems. Re: Land and house valuation 12Mar 31, 2017 10:31 pm TheGirlie Hey mafu, it sounds silly but we took out a personal loan to make up the difference the broker actually suggested to do it and the bank had no problems. Really? But then you will be paying a much higher interest rate for the personal loan Kind Regards, Bruce "Building an Eden Brae Waldorf 50 in North Kellyville" Blog: http://waldorf50.blogspot.com.au Re: Land and house valuation 13Mar 31, 2017 11:17 pm wongbruce TheGirlie Hey mafu, it sounds silly but we took out a personal loan to make up the difference the broker actually suggested to do it and the bank had no problems. Really? But then you will be paying a much higher interest rate for the personal loan Kind Regards, Bruce "Building an Eden Brae Waldorf 50 in North Kellyville" Blog: http://waldorf50.blogspot.com.au Yeah it's completely ridiculous!! but it was the easiest way for us to get around the valuation. 13 6728 2 6028 Scientists have used random matrix theory to demonstrate theoretically that the neutrino mass hierarchy can be explained mathematically. When a substance is fragmented… 21 20761 |