Browse Forums Building A New House 1 May 12, 2012 4:58 pm Finally got the valuation back on our Land and house package in Bacchus Marsh. The bank undervalued the property by $20,000 Oh the plus side we should be able to work around it, thank god that bit is over. Now I can't wait till we start building. 29/05/12 - Contacts Signed 18/06/12 - Land Settlement 03/07/12 - Building Approval 20/07/12 - Slab Down Re: grr Banks! 2May 12, 2012 6:46 pm Im sorry to hear that. It seems to be very common and there is heaps of people on this forum who can sympathize with you on this one. My parents are organising their contracts and the sales rep said things are so tight most people are building the basic designs and not upgrading anything. It really shows the affect the credit crunch is having, not to mention first home buyers grant ending in a few weeks. Re: grr Banks! 3Jun 05, 2012 1:27 pm Newtobuilding3 - do you mind me asking where in Bacchus you're building and who you went through finance with? I've just bought in Stonehill and still waiting on finance approval and getting a tad worried seeing your post! Re: grr Banks! 4Jun 05, 2012 1:42 pm Yep unfortunately that is how things are going now - the best insurance you have against the bank undervaluing the property is to have at least a 20% deposit, which means you are absorbing some of the risk if worst comes to worst and you default on the mortgage down the track (as the bank will take their cut of the sale price first - leaving you with whatever is left, if anything). It's all about risk with banks at the moment as the market is generally bear-ish, so having a larger deposit helps to placate lenders a little as they're a right jittery bunch at the moment. Some people apparently have nothing better to do than comment on other people's sigs. Re: grr Banks! 5Jun 05, 2012 4:01 pm Our house and land was under valued and we simply paid lenders mortgage insurance which solved the problem. http://lindeman28.blogspot.com - Our building blog Re: grr Banks! 6Jun 06, 2012 7:39 am kircuz we went through Bendigo Bank but we also got an independent valuation done and it came up within $2,000 of the banks. Generally the market in Bacchus is sluggish at the moment. We are building on the Pentland Park Estate - on top of the hill. We have it all sorted now and I think it's actually working out better not to be borrowing as much. We didn't want to have to get mortgage insurance. Got our approval on the First Home Buyers Grant yesterday!! $26,500 is going to help a lot. 29/05/12 - Contacts Signed 18/06/12 - Land Settlement 03/07/12 - Building Approval 20/07/12 - Slab Down Re: grr Banks! 7Jun 07, 2012 4:28 pm I'm sorry this happened to you but glad you got through it! We are in the process of waiting for our valuation to come through too. I don't think we will be as lucky as you though, if they under value the land by 20k we'll have to pull the plug Scary times ahead. Re: grr Banks! 10Jun 08, 2012 8:19 am We where always budgeting to have the First Home buyers grant spare in case we didn't get it so we came out okay in the end. 29/05/12 - Contacts Signed 18/06/12 - Land Settlement 03/07/12 - Building Approval 20/07/12 - Slab Down Re: grr Banks! 11Jun 08, 2012 8:47 am Our valuation came back at $2k more than we paid after nearly 2 years waiting for titles. I contacted the sales office and asked for recent sales of similar sized blocks and sent this info to the bank requesting a revaluation. It came back at $32k over purchase price. Sometimes you just have to do their job for them!! This was at Armstrong Creek (Geelong). Re: grr Banks! 12Jun 08, 2012 10:26 am We don't get the FHOG unfortunately so no really back up for us. We are in Plumpton but 2 minutes away from Taylors Hill where the land prices are 100k more than we are paying and then 4 minutes from Caroline Springs that has very high priced land. Fingers and toes crossed it all works out :/ Re: grr Banks! 13Jun 08, 2012 10:43 am It's been the worst part so far. We where lucky the bank came back quickly but I was told the melton/bacchus marsh area has so many First Home Buyers that prices are a little inflated and they are undervaluing the properties by a lot more than the used to. And the market and economy are bad at the moment. Hopefully yours works out okay. 29/05/12 - Contacts Signed 18/06/12 - Land Settlement 03/07/12 - Building Approval 20/07/12 - Slab Down Re: grr Banks! 15Jun 09, 2012 7:30 pm koukli Yeah that's what I've been hearing too. Oh well I will keep this thread posted. Should know either Tuesday or Wednesday next week. Trewman Our house and land was under valued and we simply paid lenders mortgage insurance which solved the problem. Sorry, but this is our first time to build and apply for a loan so there are still a lot of things that we are unfamiliar about, but how did the LMI solved your problem? How much was your property undervalued for? And will LMI work for everyone or is it just a case to case basis? Pardon my ignorance. Re: grr Banks! 16Jun 09, 2012 8:05 pm I'd like to know the answer to that too. We will have to get LMI regardless because we do not have enough money to avoid it but there was no mention from the bank about it helping if they under valued the land. I really think were going to have to call it quits as we can't afford for them to under value the house either and I don't want to be stuck with a block of land I can't afford to build a house on Re: grr Banks! 17Jun 09, 2012 8:51 pm our valuation came in around 20k under and we didn't have to pay the difference either. our broker said all we had to do was pay the LMI $6k and that would be fine. We are already putting in more than 20% deposit, I think it had something to do with your initial deposit? If it's a bigger chunk, LMI is fine. Re: grr Banks! 18Jun 09, 2012 9:12 pm I'm sure we paid LMI though our deposit was 22% I really don't know why. Maybe it had something to do with the values? If it did none of this was explained to us. Re: grr Banks! 19Jun 12, 2012 6:58 am My understanding is you pay LMI when you borrow over 80% of the property value. We didn't want to do that as it would mean the loan would be harder to get in the first place, as we only have 4 months saving history. 29/05/12 - Contacts Signed 18/06/12 - Land Settlement 03/07/12 - Building Approval 20/07/12 - Slab Down Re: grr Banks! 20Jun 12, 2012 8:31 am From the banks point of view your deposit is based on the signed contract price plus any "value-adding" variations you might have made since signing the contract - banks don't count things such as stamp duty or contract price holding extensions and some post-contract variations aren't counted either if the bank doesn't consider them to be "value-adding" (ie. even though you pay for these things entirely out of your own pocket they don't count as being part of your "deposit"). Some people apparently have nothing better to do than comment on other people's sigs. |