How long after settlement do you ask for another valuation?

Say you purchase a property well below market value, how long does the forum collective typically wait before going back to the bank to revalue and top up the loan to redraw the increased equity out?

 

Typically, lenders won't look at revals under 6 months from purchase.

 

When there is enough equity built up in the property to warrant a revaluation

 

There's no straight forward answer.

Some lenders will require 6 months before lending again - some will lend straight away. Some will allow for an upfront valuation to be ordered whenever the broker likes - others have timeframe restrictions and/or require a good explanation as to why a valuation should be ordered so soon after settlement.

Also - valuers will typically look at the recent sale price and if it was only 6-12 months prior then they don't often increase the value much beyond what you paid unless you've made significant improvements to the property.

Cheers

Jamie

 

ANZ is good - I did a reval on the day of settlement once - about 2 years ago. And it come in higher

 

which lenders do straight away? cba anz westpac?

 

One of the issue with the 3 you have mentioned Elives is that they often use their own internal method of Modelled Estimating and therefore difficult to trigger a full valuation even if you believe the property was a buy below market value.

Cheers


Richard

 

I think westpac have a 6 month wait policy too.

 

They don't like it - but you can force the issue without too many troubles.

 

@Jamie Moore So after a cosmetic reno and some fix & repair, is that good enough reason to ask for the bank to do the re-valuation ?

 

Yes, it is a good enough reason and something I have done a number of times in the past. One of the issues that came up consistently, was they wanted to know how much I spent on the renovation (I presume so they could work out an increased value). But this is the last thing I wanted to tell them as I was looking for a $2-3 increase in val for every $1 I spent on the reno.

 

So how did you normally handle that situation? Add a few extra $$s to the estimated cost?

 

I just wonder in this example does the lender ask casually to assist/speed up in the reval or is it a bit more formal with proof of expenses etc. I hope not the latter.

 

I've done a reval straight after settlement on a property i fixed up during settlement.
Others, bank normally makes you wait 6-12 months in my experience.

 

I haven't had them ask for evidence, are they able to?
Estimate your own time and add it on?

 

Bonus $$s for blood or tears spilled?

 

Oh boy, if only it worked that way.

 

Jeez, what are you guys getting up to with your 'renovations'?

 

In this case I used the Quantity Surveyor's figures from the depreciation schedule (which were higher than actual). Unfortunately, you can't value your own labour. Val was not where I wanted it to be, but I was still able to refi out of a high interest low doc back to a regular loan.

 

The usual, Blood, Sweat and Tears.
But it seems that it's only the 'sweat' part that creates equity.