Hi everyone,
a quick summary ; were doing a knock down rebuild in Perth. Met with broker, refinanced existing loan -with one of the big 4- and were told we'd be able to get construction loan for roughly the same amount.
I know this kind of thing is happening more and more... We got pre-approved for construction but the builder took a while and the pre approval lapsed after ~4 mths. Now the bank has undervalued the land by about 40-50k in my opinion, and wants to charge LMI too!! it's so frustrating because a lot of new houses are being built near us and none of them sell for less than 450k, most go for a lot more! We have a decent bit of equity, stable employment and savings but it's still not enough apparently!
I have contacted a local r/e agent who kindly offered to give me some data to prove the value of similar blocks in the area.
I guess I'm wondering has this happened to anyone else building in an established area and what approach or info will give me the best chance of negotiating the LMI and valuation? ....other than throwing a screaming tanty lol!