Browse Forums Home Finance Re: Bank Valuations on House+Land Properties 4Apr 15, 2008 3:08 pm I concurr...
The bank is all about posession of the security. Also they will make it so that the loan is in their favor every time. cynical given i am a mortgage manager but its my profession to show people how the banks rip them off and how to minimise the rip off.... Re: Bank Valuations on House+Land Properties 5Apr 16, 2008 11:28 pm Yep, we ended up being approved significantly short of what we needed the valuation / loan to be.
Is it normal for the valuation not to equal the "land purchase price plus building / contract price" at least? I suppose we were being naieve thinking that it may be valued slightly more than the land cost & building cost! So it was a bit of a shock. We are assuming when doing the first valuation they don't take into account any site works costs and other minor details as such which do add significantly to the building cost? Ah well, we have some money aside which we were hoping to keep and then to finish the house off with (carpets, curtains, water tank etc etc). Hopefully we will have enough towards the end! Another question is weather it's worthwhile getting another valuation done half way through & topping up the loan if possible? Re: Bank Valuations on House+Land Properties 6Apr 17, 2008 1:40 pm Pebble, I am not involved in finance so I am definitely speaking from an amateur position.
We were in a similar position and had to forego some of our 'desired' upgrades because of the low valuation however, at the end of the day, we got our house If you haven't signed contracts with your lender yet you should shop around now as I don't think you will be able to later without paying either exit fees (if you go with another lender) or another set of establishment fees (if want to upgrade your loan with same lender). We went with the happy dragon and I have subsequently been told that they are notorious for low valuations - information I could have used six months ago! I am not sure if any of the big banks are known for high valuations - if anyone knows otherwise hopefully they will post the info on this thread. Paul Re: Bank Valuations on House+Land Properties 7Apr 20, 2008 10:59 am Like you, as long as we get the house built we'll be happy.
FYI we're going through ANZ, I think due to circumstances we'll be sticing with them rather than shopping around & starting the whole process again. We're so close to starting the building now! Re: Bank Valuations on House+Land Properties 8Apr 20, 2008 11:58 pm We're also with ANZ and we had some dramas with their valuations. They value they initially came back with was $50K under what we were paying for the land and house. We asked for them to investigate it and but they were refusing to budge. After threatening to take our business elsewhere (at that stage we only had a loan on the land), they decided to send another valuer out. They've came back with a value $15K over the house and land total, so go figure. Re: Bank Valuations on House+Land Properties 9Apr 21, 2008 10:33 am It's frustrating isn't it? Our house is costing $300K yet the first valuation was only $240K so we too requested a second valuation which came back at $270K without a single item being changed - so, as you said, go figure!
Paul Re: Bank Valuations on House+Land Properties 10Apr 21, 2008 12:54 pm enigma_brennan It's frustrating isn't it? Our house is costing $300K yet the first valuation was only $240K so we too requested a second valuation which came back at $270K without a single item being changed - so, as you said, go figure! Paul Yeah it was frustrating, that little fiasco delayed our start by a month. It wouldn't have been so bad if we could arrange finance prior to getting the DA approved, but to have everything in place ready to start and then to have the bank screw you around land value 11May 06, 2008 10:27 pm We've just recently acquired an equity loan based on the value of our block so that we'll have enough cash to complete the house and build to a livable standard. Unfortunately the block value has decreased ( approx 20%+ ) since we bought in Feb. Luckily we bought 15K under asking price but unfortunately the bank has valued it at another 10k less than that. so 25K below the sale price.
Not great when the bank will only lend 50% percent of it's value. After lots of conversations with the bank they decided they'd lend us 60% of the current land value. No one is borrowing. And now we are set again. phew! Re: Bank Valuations on House+Land Properties 12Jun 25, 2008 3:20 pm This can depend on your lender, but some will refund part of you LMI if you have your property revalued and the amount outstanding on your loan is < 80%.
most will only do this in the forst 12-18mths of the loan. I dont know anyone who has done it with a construction loan, but I do know people who've got a refund of their LIM on an established property, and I cant see that thered be a difference - a valuation is a valuation. Hi, just need to ask if anyone build with Central Properties in Victoria. Thankd 0 4024 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11933 13 6632 |