Hey All, hope all your builds are coming through smoothly!! Just wondering whether any of you had your valuations come in lower? Ours just came in 100k less!!!
Cheers
Browse Forums Building A New House Re: stage 19 - Aston - Craigieburn 46May 15, 2017 3:35 pm Hi Astoria , our evaluation was all good from the bank. Re: stage 19 - Aston - Craigieburn 47May 16, 2017 9:03 pm AstoriaGrand Hey All, hope all your builds are coming through smoothly!! Just wondering whether any of you had your valuations come in lower? Ours just came in 100k less!!! Cheers Hi AstoriaGrand Our valuation also came down lower by 10k. We bought land in an already established estate and the land valuation came up 55k more than we actually paid for. This was a WIN for us but after doing the house contract and getting the bank to re-evaluate again this time the total valuation was 10k less which is not too bad compare to 100k. ****************************************************************************** Here is a scenario explaining how the bank financing the construction of the house after you have already financed the land. You probably know that already but may be for others to get an idea. Land price 300 (Banks lends $240 - assuming you put down 20% deposit) House contract is 400 (pending valuation for construction) Bank does a valuation for similar properties around the area and say comes up with a valuation of 720k The bank has already loaned you 240k for land. To finance the construction the bank will go: 80% x 720 = 576 minus 240 = 336k. This is the amount the bank will lend you for construction Considering the house contract is 400k which means you are short on $64k. (400-336=64) Now you can either: a. pay LMI and have the bank finance this shortfall b. or get another valuation from another company c. or if you have the cash then you avoid paying LMI. Building the Madison 40 | By Porter Davis Re: stage 19 - Aston - Craigieburn 48May 17, 2017 3:33 pm Gio Thanks so much for the detailed explanation! Bank has asked for a second revaluation. Fingers crossed this time. We're ok to pay a little bit over but 100k is below the belt. I can't seem to fathom how it could be way off. We definitely haven't added anything unnecessary to the home that wouldn't add value. I understand that in a new area, it's hard to get comparable sales but surely you'd be taking current build costs and land value into consideration, how else do builders like Carlisle or Porter Davis reign in Craigieburn if all valuations came under by using just the comparable sales of the established side where prices don't move as fast at the cost of building and value of new land. I can't seem to comprehend that. Re: stage 19 - Aston - Craigieburn 49May 17, 2017 8:35 pm the disadvantage is that many upgrades that are not considered "essential" are excluded from the valuation, especially as as you describe here in Aston. The area is still unknown for true value plus the bank naturally will only accept as much risk as they can realistically recover in the case of default. We had to fund $70k on our 25sq build (land deposit, construction deposit and excluded upgrades) and that was even after accepting the LMI premium. Re: stage 19 - Aston - Craigieburn 50May 17, 2017 8:48 pm Hopefully you get better news this time. Worst case scenario you will have to pay LMI on the shortfall for the construction. (as per my scenario above) OR If you have an existing property with some equity, you could also access this through a top up on the existing loan and take the cash to the new property you building just to avoid the LMI. Good luck Building the Madison 40 | By Porter Davis Re: stage 19 - Aston - Craigieburn 51May 18, 2017 11:20 am Gio Hopefully you get better news this time. Worst case scenario you will have to pay LMI on the shortfall for the construction. (as per my scenario above) OR If you have an existing property with some equity, you could also access this through a top up on the existing loan and take the cash to the new property you building just to avoid the LMI. Good luck Thanks!!! Re: stage 19 - Aston - Craigieburn 53Jul 18, 2017 10:14 am Hi Aston 19, Congrats mate you guys must be very excited. Our build is reached completion of frame stage now in process of conducting inspections from a independent building inspector. Hopefully will be in before Christmas. The fastest thing a builder will do is bank your cheque, those systems work perfectly with lightning speed, everything else is slow burn. Just the way it is. 1 9414 1 4985 Thanks for much mate. I see that you do cabinets before flooring. For timber flooring, for most parts it's fine because it's got base plates, and for door jabs you can… 7 13796 |