Browse Forums Home Finance 1 Mar 24, 2009 4:54 pm After waiting about 5 weeks for the CBA to come back with the rubber stamp, we've been informed that our land (in a new estate) has been valued at 143500, which is 5000 less than what we "bought" it for. We've already had so many extensions from the land developer that our last one ran out yesterday, so we're currently using up the 48 hours grace, our broker says hes gonna get in touch with the estate manager and get him to prove to the bank why that land is worth 148,500. We are seriously concerned now that we might not be able to build as we cant raise that extra 5000 if needed, nor do we think we should have to. Anyone got any suggestions please? thanks! Brian. Re: CBA valuation on land came in 5k short 2Mar 24, 2009 4:56 pm Not sure if this would work but, got a credit card? 'A bottle of wine contains more philosophy than all the books in the world.' Louis Pasteur Vegie garden: viewtopic.php?f=19&t=27637&start=0 My Backyard Adventure Re: CBA valuation on land came in 5k short 4Mar 24, 2009 5:18 pm that sux, i have no answers but its a hard slog to get money out of the banks at the moment fingers crossed you get it sorted i had some friends who recently had their land valued at around 30k under what they wanted to pay, it wasnt a new estate though Blog - http://snakedr.blogspot.com/ Build Thread - viewtopic.php?f=31&t=12084&p=307406#p307406 Status - PCI 15/10. Things nearly done. Re: CBA valuation on land came in 5k short 5Mar 24, 2009 5:39 pm beattun for what? (yes) I think what lisanne is meaning is can you use funds from a credit card to cover the difference? maybe pay the deposit on your c/c perhaps to get you through? And pay the c/c off as a priority? I would suggest try a non-banking lender or a broker but fear that you dont have anymore extensions available for you atm..... I hope it works out ok? Re: CBA valuation on land came in 5k short 6Mar 24, 2009 7:53 pm I would definately look at the credit card situation. Another idea would be a line of credit from another lender. Have a quick look at Citibank ReadyCredit http://www.citibank.com.au/AUGCB/APPS/p ... racash.htm Low 2.9% p.a. for 6 months†, on balance transfer, cash advances and purchases. Borrow between $5,000 and $25,000. Seems like it would cover your difference with a pretty low interest rate as well, just make sure you have paid it down in 6months. Just curious for my own benefit, what estate are you building in? I am building in Tarneit as well as you and have our loan application next week with Westpac Re: CBA valuation on land came in 5k short 7Mar 24, 2009 7:54 pm Zerosignal I would definately look at the credit card situation. Another idea would be a line of credit from another lender. Have a quick look at Citibank ReadyCredit http://www.citibank.com.au/AUGCB/APPS/p ... racash.htm Low 2.9% p.a. for 6 months†, on balance transfer, cash advances and purchases. Borrow between $5,000 and $25,000. Seems like it would cover your difference with a pretty low interest rate as well, just make sure you have paid it down in 6months. Just curious for my own benefit, what estate are you building in and what %age were you looking to borrow (this can make valuers act more conservatively)? I am building in Tarneit as well as you and have our loan application next week with Westpac Re: CBA valuation on land came in 5k short 8Mar 24, 2009 7:59 pm thanks for the help guys, im just a bit annoyed, as our block was one of the cheaper ones in the stage, but still the average is about 148 - 150. i will discuss the credit card option with the ball and chain. zerosignal, its in tarneit gardens and we have a 20K deposit, looking to borrow 330 all up. Re: CBA valuation on land came in 5k short 9Mar 24, 2009 8:11 pm beattun thanks for the help guys, im just a bit annoyed, as our block was one of the cheaper ones in the stage, but still the average is about 148 - 150. i will discuss the credit card option with the ball and chain. zerosignal, its in tarneit gardens and we have a 20K deposit, looking to borrow 330 all up. Sorry to hear about the shortfall in valuation beattun.....l'm anxiously awaiting formal approval for our loan....and am sweating on the valuation coming back ok. Reading others coming up short brings more anxiety....although l'm in country vic so l'm trying to convince myself everything will be ok. I think Annietom was building in tarneit too and her valuation came back much much lower than she needed as well, alot lower than yours from memory....not sure what bank she was going through though. $5000 is not too bad....it sucks yes, and l hope the developer can convince the bank to value it at the purchase price. But if not, the credit card option sounds like a good way to get around it.....as long as it doesn't stuff up your servicing ratios which l dunno if the bank will check that out, to see where the extra equity came from?? Good luck, l hope you find a satisfactory outcome in the situation Re: CBA valuation on land came in 5k short 10Mar 24, 2009 10:08 pm we have a pre-approval from CBA for a house and land. we plan to go to an auction on Sat to bid for a land... what if we get the land and CBA values it lower? does that mean we pay for the difference? Re: CBA valuation on land came in 5k short 11Mar 25, 2009 12:04 am esm we have a pre-approval from CBA for a house and land. we plan to go to an auction on Sat to bid for a land... what if we get the land and CBA values it lower? does that mean we pay for the difference? The bank will lend you the approved % (LVR) of their valuation amount, you need to cover the rest. For instance, if you agreed to pay $400,000 for the land and they valued it at $380,000 and you had a 95% loan conditionally approved. They will lend 95% of their value which would be $361,000. Re: CBA valuation on land came in 5k short 13Mar 27, 2009 6:03 pm I think Annietom was building in tarneit too and her valuation came back much much lower than she needed as well, alot lower than yours from memory....not sure what bank she was going through though. [/quote] Ah yes, you have such a good memory Thorney - I am impressed! We came in under $20,000 - and we only just took out a personal loan for that amount to cover it! FYI: we lent from Suncorp - building in Tarneit... Not happy jan! We looked at many options including selling land and just buying established, but decided we wouldn't get what we wanted and it would take ages... and not guaranteed to work either... So we went with personal loan on the basis that in a years time we would try to refinance and capitalise the personal loan into the home loan - it's the best we can think of for now, and we are so frustrated and tired, so that's what we did. No, we aren't happy, but life goes on! Hoping to get a start date soon! Annie A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ Re: CBA valuation on land came in 5k short 14Mar 27, 2009 6:47 pm Well ya do what ya gotta do eh.....l know if l was in your situation ( that l won't be), l'd do the same thing as you. I could not turn my back on my dream of building and buy established. I'm sure things will turn out well in the end for you.... and ooh! ya starting soon.....awesome!! ...Sorry if l missed your thread or post on it, so did you end up keeping the original floorplan now that you got the personal loan? Re: CBA valuation on land came in 5k short 15Mar 27, 2009 7:00 pm Do Tarneit Gardens do your fencing and front landscaping ? If they do the banks usually realise that the developer has 'bumped' up the price of the land to include these 'rebates' and therefore does not include them in the valuation. This happened to us anyway Re: CBA valuation on land came in 5k short 16Mar 27, 2009 7:56 pm thorney Well ya do what ya gotta do eh.....l know if l was in your situation ( that l won't be), l'd do the same thing as you. I could not turn my back on my dream of building and buy established. I'm sure things will turn out well in the end for you.... and ooh! ya starting soon.....awesome!! ...Sorry if l missed your thread or post on it, so did you end up keeping the original floorplan now that you got the personal loan? well exactly, our choices were, well, shi*t, it was the best choice of a bad lot of choices really. At least we will get our home, whether we can afford it now is another thing!!! as for a thread/blog, just haven't got into that yet because I haven't known what is going to happen yet! will get onto it when I actually have a start date - you know, just to be sure.... AND yes beatten, I know your pain. Ours was kinda worse, but it's the same thing really. We had already settled on our land so we couldn't pull the pin. Had we known prior to being legally committed to the land (ie. settlement had taken place) that we wouldn't have got val - at $20,000 we would have jumped at the chance to cancel our purchase of land & building. Unfortunately we had an overzealous builder who told us we would have no problems and to settle as soon as possible because the later the settlement, the longer the building would be held up - BOY were we stupid!!! we settled aloooooooooong time ago, hmmmm, I got sucked in good and proper. A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ Re: CBA valuation on land came in 5k short 18Mar 27, 2009 10:34 pm I just fell out of a contract (Finance fell through) on a house in Tarneit, due to the valuation coming in 15k short!!! Blog: http://house.jay.net.au/ Re: CBA valuation on land came in 5k short 19Mar 27, 2009 10:39 pm oh sorry to hear that, seems this is going to be a nightmare, I told the bank about the house and land cost, size block size house etc, he said he doesnt see any problems, but would he even know that? Re: CBA valuation on land came in 5k short 20Mar 28, 2009 9:22 am fully oh sorry to hear that, seems this is going to be a nightmare, I told the bank about the house and land cost, size block size house etc, he said he doesnt see any problems, but would he even know that? hey that's what I was told - "yeah, no problems - easy peazy" etc etc I've realised now that I received those assurances because the people making them had things to make (ie. commission) and we were the only ones that would suffer a lose. And that is exactly what happened. Very disappointing. A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ Yeah I don't know why I came to a forum. Place is full of wierdos/pedos thought internet may help but I suppose I'll try my luck with someone in person. Cheers. I tried… 0 6443 Need advice on the backyard plan above. Should I excavate and cut all of the dirt to level with the house slab or semi-excavate as per photo above? 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