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ex-housing commission

Discussion in 'Property Finance' started by melbournian, 1st Aug, 2016.

  1. melbournian

    melbournian Well-Known Member

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    I came across some ex-housing commission houses being sold off by DHS.
    came without a vanity in the bathroom and one door is busted. Overall seems OK. Builder said maybe a 15K do up. From a valuation perspective for finance? how do the lenders see these houses as. It's like those concrete houses back in the 60s.

    I have been looking closely at these type of houses after seeing how some ex-housing commission houses in Ashwood and Chadstone have been flying for more than million.
     
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  2. Otie

    Otie Well-Known Member

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    I can't answer your question, but I'm assuming the value is likely to be in the land anyway. I just bought one and on the Val the land was 360k and the house 32k it stated that the improvements (house) added little to no value
    I had no issue with finance

    Which suburb are you looking at?
     
  3. Redom

    Redom Mortgage Broker Business Member

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    Probably a good idea to get a COS valuation for something like this (if suitable in terms of lenders).

    If going full valuation, could cause issues depending on the nature of repairs/renovations required. By the sounds of it it could cause major issues, so best avoided if possible.
     
  4. Brady

    Brady Well-Known Member

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    Pending LVR bank might not even do a valuation.

    If property is to be valued, you don't want it to be deemed not habbitable - so functioning cooking facilties and wet areas are usually a must.
     
  5. melbournian

    melbournian Well-Known Member

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    I can buy it outright in cash but depending how much it goes for but I prefer just sticking to 20% deposit. But it is a worthwhile buy though. renovations and repairs itself aren't major

    kitchen is fine. rooms are ok. just a bit outdated. only issue was the vanity not being there. how much would it cost to get a COS valuation?
     
  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Some lenders might not need a valuation - especially if there's no LMI involved.

    If a full valuation is required - they will likely site the issues that need repaired and the lender will want to see you have sufficient funds available for the work.

    Cheers

    Jamie
     
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  7. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Nothing. A COS valuation is where the lender will use the contract of sale to value it.
     
  9. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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