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Can I request bank to revalue after 1 year?

Discussion in 'Property Finance' started by David B, 22nd Jun, 2016.

  1. David B

    David B Member

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    Hi everyone,

    I bought my PPOR 13 months ago and I know that my PPOR price has increased by 80k comparing to recent comparable sales in my area. I want to access this equity to buy an IP, can I request my bank to revalue my place or I need to wait few more months?

    I have saved enough money for the deposit of IP however, I prefer to keep that and use my equity instead.

    Thanks,
     
  2. Redom

    Redom Mortgage Broker Business Member

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    Yes you can - which lender are you with?

    If the property is in the same condition and your with a lender that allows desktop valuations at your LVR, thats the starting point. If the numbers strong and in line with your expectations you can use that. Otherwise, you'll likely need to do a full valuation where a valuer comes and views the property. This may be more conservative than desktops (hence its best to do that first if possible).
     
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  3. David B

    David B Member

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    Hi,

    I am with ANZ and the house is in the same condition,
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    One of the best lenders for loan increases and revals.

    I once did a revaluation with anz on the day of settlement!
     
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  5. D.T.

    D.T. Adelaide Property Manager Business Member

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    I've had one of my own props revalued higher straight after settlement, others 3, 6, or 12 months
     
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  6. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Definitely get it revalued.

    You've mentioned you've saved cash, in any case you wouldn't want to use those funds even if the equity hadn't risen. Instead you would use that cash to pay down your mortgage, then have your broker setup a new equity release loan split which would release the funds. That way you can borrow for 100% of the property purchase and costs, whilst reducing PPOR non deductible debt - win win.
     
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  7. albanga

    albanga Well-Known Member

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    Agree with @Terry_w, I think ANZ are the best for property valuations. Not that I have done it religiously in my time (maybe 5 times) but everytime ANZ has given me the best valuation.
     
  8. bamp

    bamp Member

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    what about CBA, what is their process?

    Cheers!
     
  9. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    There's no 'best bank' for valuations. Like every other bank, ANZ outsource their valuations to individual firms. The firm chances from one postcode to the next. The individual valuer for the individual firm in the location of your property might generate better results. The next suburb over it might be a different valuer with different opinions.

    The ANZ has great policies around allowing revaluations and cash out, but this is no guarantee that the results themselves will be more favourable.

    The CBA, Westpac, NAB and almost every other lender follow similar processes with minor variations.
     
    Last edited: 24th Jun, 2016
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  10. albanga

    albanga Well-Known Member

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    Yeah I do understand that, my post didn't imply it.
    I more meant every time I get vals, the ANZ ones for whatever reason usually blow the others out of the water.
    In-fact the last time I was hoping for a low valuation! Along came ANZ and valued considerably higher and made me pay more (purchased land from my brother).
     
  11. JesseT

    JesseT Well-Known Member

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    Do banks charge to have a valuation carried out or is this usually free?
     
  12. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Depends on the bank. Free with ANZ if under the package (example)
     
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  13. TaylorChang

    TaylorChang Well-Known Member

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    Valuation is a very interest topic.

    I got same property CBA valuer went out value $540,000, after a month $580,000.

    ANZ valuer $585,000

    I have a good relationship with ING BDM. knowing my client's situation. sent out the best valuer. got $650,000 as valuation.

    All these was done within 2 months before the settlement !
     
  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    LVR and loan type places a huge limit here

    middle to long term fixed loans and LMI almost always mean its hard to do a valuer shop.................... a good v poor outcome can be worth 100s of thousands of investible capital based on "average" properties


    ta
    rolf
     
  15. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    ANZ should allow a free upfront val and are generally quite easy to release equity with - one of the only lenders that will go up to 90% lvr without hassle.

    Only issue with their vals is that they keep the result on file for a while - so when ordering one 12 months after the first - they question why a "new" valuation is needed and will expect suitable justification.

    Cheers

    Jamie
     
  16. Wall Street

    Wall Street Well-Known Member

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    Agree with all the above.

    Last month I had a property revalued to release some equity (with ANZ). I had only purchased it approx 1 year ago.

    The only issue was was that they required a top up to the LMI as I was bringing the loan to 90% LVR.
     
  17. albanga

    albanga Well-Known Member

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    Sorry to hijack a thread but i had a valuation question that somewhat relates to this.
    I am about to build my PPOR and I understand the valuer will go the lower of land+build contract OR end valuation.

    I am very confident the land+contract will be the lower amount:
    Land 345k + Build 450k = 795k

    The land I purchased from my brother for 345k but it was valued higher (ANZ said 400k). The build contract also has several things left out that i will be self supplying (I have friends who can supply me a number of items at very cheap cost).
    I could be wrong but I would estimate the end value to be mid 8's based upon comparables.

    So my question is if they lend at 80% on land+contract = 636k
    Can i get the completed house valued as soon as construction is finished?
     
  18. tobe

    tobe Well-Known Member

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    yep. You wont have an issue with the increase in land value since 'purchase', but the bank wont lend against anything more than the hard costs for the build. Once the building is complete and you have a COI you can get another valuation done. It'll have to be a full val though, as desktops wont work with a newly completed house that hasn't changed hands previously
     
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  19. albanga

    albanga Well-Known Member

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    Thanks @tobe , you have proven yourself quite the construction guru!

    With regards to the increased land value are you saying the valuer will actually assess it again even though it was purchaed only a few months ago? Also worth noting that ANZ did value it at 400k but the lender is CBA who valued the purchase price (ANZ policy didn't fit what I needed). AMP and Macquarie also valued it at 350 and 375.
     
  20. KayTea

    KayTea Well-Known Member

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    Wow - that's a huge difference in values. We're having all sorts of problems at the moment, as our bank (Suncorp) has undervalued the renovations that we are doing to our place, and are basing our renovation loan based on that.

    We were told we would be able to borrow $160K without any problems, so on the conservative side, we aimed to borrow $150K (and have planned for a renovation of that value). The valuer has now come in and told the bank some 'interesting' info on our place, and we are now only allowed to borrow $132K, and having to find $18K of our own to finish the reno (we're having to use the money we'd saved for furniture - so it looks like we'll be relying on milk crates and old palettes for 'retro' decor choices over the next few years………..)