Hi there, I am hoping someone can help us.
Basically we have decided to build - a house and land package in Plumpton. We had a 5% deposit and everything was looking on track - we were pre-approved for a certain amount through CBA. Signed contracts for our land, Found the perfect home through Henley, signed contracts with them, made deposits... Then comes along the ''valuation" - something until that point we weren't ever told to consider! The valuation came in at nearly $30,000 lower than what our house+land cost is - cost of house + land is $525,000 and was valued at $495,000.
We are now stuck as to what to do and need advice, we really don't know who to turn to! We don't have the extra $30,000 saved up, our broker is suggesting we take out a personal loan to cover the costs and revalue the house after build but we see this as risky - what if it is not valued highly enough and we are stuck paying this personal loan as well as mortgage?
Is this what happens to people who only have a deposit of 5%? - I think no matter what house we chose whether from Henley, Metricon (even if it's a cheaper house) it would still be under valued by the bank - as of course Henley/Metricon etc would up the price to sell to consumer higher than what the value actually is?
Has anyone ever been in this position and have some advice? Or does anyone know who we should be speaking to? A financial advisor maybe? Our broker thus far hasn't been really helpful in this department and thinking maybe it's not his forté!
We have tried to get another valuation done - by NAB and it was valued at $500,000 - not much more. In addition to this we really can't go with another bank apart from CBA as some banks won't lend to us as our land is considered rural.
Thank you!