Browse Forums Home Finance 1 May 20, 2016 10:24 am Hi, Just wondering what the likelihood of the bank coming back with a valuation more then the cost of the build plus land? We're applying with CBA. When I look at online valuation sites and sales records in the area there are very similar but much older homes being sold for $560000+. Our land plus build will come in at $514000. Cheers, Re: Valuation being more then build cost 2May 20, 2016 10:54 am Our bank valued at $600,000 when the cost is more like $560,000. We think once the landscaping is all done the value will actually be over $650,000 - you want the valuation to be more than the cost - the issue is when the valuation is less than cost..... My blog: tashandpaul.wordpress.com Re: Valuation being more then build cost 3May 20, 2016 1:50 pm Banks have a policy of using cost price or valuation - whichever is the lower. When did you purchase the land, or is that happening now? if there are 'costs' involved like the contract price for land and build its rare for the valuation to come in higher. If you have owned the land for longer than 6 months then they're more likely to take the valuation from comparable re-sales of like homes as you say. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Valuation being more then build cost 4May 20, 2016 4:45 pm becjarrettdalton When did you purchase the land, or is that happening now? We've owned the land since September last year. Re: Valuation being more then build cost 5May 20, 2016 5:01 pm OK so most likely the valuer will align with comparison sales in the area. Is it a newish estate? If so they might be persuaded if you can provide sales lists of other blocks (if they help you!) Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Valuation being more then build cost 6Jul 06, 2016 4:00 pm Sometimes valuations are a bit like astrology. But as long as the property has gone up since you put a deposit on in, and assuming you qualified for a loan then, you should be fine now. No, you wont be borrowing on todays value, bank will lend on contract price to settle. But ONCE IT SETTLES, you can refinance to a new lender and grab some of that equity that week !! Usual exits and new loan entry fees payable. Could well be worth it if you use the $$$ wisely (car loan? personal debts? etc) or invest it (financial planner invest, not in a new motorcycle). I worry about people buying off the plan NOW after the peak has passed, for settlement in 2 yrs + time (my kids). Good luck paying TODAYS boom price with settlement at 2018's valuation. Hello bank of Mum and Dad, Can someone please offer some advice? Im DESPERATE. Because I'm completely and utterly exhausted. How long are variations taking with other companies at the moment? We… 0 18473 My garage door has started playing up recently. Sometimes (and getting more frequent) when I press the button to open it, it wont. The motor is an ATA GD0-6V3. Red and… 0 2674 Being an owner builder is no walk in the park. It’s a challenging endeavour that requires dedication and hard… 0 10007 |