Bank's is ST00peD!

Discussion in 'Property Finance' started by Car tart, 31st Oct, 2018.

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  1. Car tart

    Car tart Well-Known Member

    Joined:
    16th Sep, 2018
    Posts:
    178
    Location:
    Sydney-Melbourne
    Got this from my bank today.

    "Due to recent market changes we are now scaling LVRs now based on property value and median suburb price"

    WTF,

    Ive got an offer of $8 million on a property and I keep 18 residual land lots of the 53 to be created. Bank says average house value is $900 k in that suburb so my 5.2 acre parcel with two brick homes is adjusted from "their Valuation" of $2.5 million down to $1.25 million.

    I think I need a new lender.
     
    Ben_j, GOU and Perthguy like this.
  2. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    8,194
    Location:
    Adelaide, SA
    If you had to firesale the whole thing how much do you think you would get?

    I assume the banks thinks there isn't many people around with this budget nor appetite?
     
  3. Car tart

    Car tart Well-Known Member

    Joined:
    16th Sep, 2018
    Posts:
    178
    Location:
    Sydney-Melbourne
    At a fire sale it would get about $8 million for the whole parcel, IE I would lose about 18 residual blocks.
    There are hundreds of cashed up locals wanting to buy as they have sold theirs for about $2 mil per acre and are looking to get back in at about $1.5 mil per acre.
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    4,416
    Location:
    Gold Coast
    dems de drum and has been for a long time with commercial

    very fluid

    ta
    rolf
     
  5. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    1,064
    Location:
    Sydney
    Nice problem to have @Car tart
    I've read some of your other posts, congrats on the hard work and choices you have made to end up here.

    Don't take it to heart, yes Banks are STOOpeD :p

    I'd be inclined to send the notice back to them stating that you believe they have made a rather large error and sent you a notice intended for another punter :D
     
    TMNT and Car tart like this.