Hi Expert, I am currently owning 1 IP and would like to use the equity for the new IP. The bank recently did the Desktop valuation and the value come back significantly lower than Core Logic data and recent sale in the same suburb. I would like to know if I should go for a full valuation? The estimated value is 800-850k but the bank come back with 760k. I can still buy the new IP with the bank valuation but it won't be enough for future IP purchase. Thanks for your help.
Thanks for the reply Mick. I am currently owing $215k for this IP but I have already borrowed $132 for my PPOR. Assume if I can get the estimated price of $825k, my equity balance would be $312k. I am just unsure if I should get the maximum equity now or get another valuation when I am ready to purchase new IP again.
It can't hurt to have it there released (if you can be trusted not to go crazy on a new car etc.) You can always re finance again when/if the need arises. It does sound to me though that you should look at a restructure to pay down the PPOR to maximise your tax efficiency.
Core logic So an algorithm largely based on number of bedrooms & bathrooms that tallies up recent sales to give you an overinflated price (in the hope that you might sell, generating more income for that sector) because it can't decipher if you have a development block, a near new house or a dump..... You can't base anything on those sites. Bank valuation is probably under, but not by much (even in current market) It's fine to have equity, but servicability for another purchase may be the issue ?
Corelogic algorithm is more like a guestimate. Just get an upfront valuation, or even order a few valuations to see which one comes back the highest. As long as it won't upset your tenants.
Get a decent Mortgage broker on your side asap, one that has access to RP data and other lender Desktop/Automated valuations