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Is an independent valuation worthwhile?

Discussion in 'Property Finance' started by Weaver, 17th Aug, 2016.

  1. Weaver

    Weaver Well-Known Member

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    Hi, awesome forum folks - I'll been reading some very valuable advice over the last few weeks. Now to dip my toe in the water....

    I have an IP (no PPOR, cause this is provided by employer) worth I think $270k. Council rate notice says $255.
    It has an $180k loan (P&I) against it with $165k owing.

    I was hoping to borrow against this property to build IP2, and from my reading of these forums, it is better/cheaper to borrow as much as possible (80%) against IP1 (split loan), so that I can reduce my construction loan for IP2.

    I rolled over my IP1 loan to Ubank, the valuation was at $250k (18 months ago) but as I initially got a family discount when purchasing IP1 (from a parent), I think this valuation was on the low side.

    So, my question - is an independent valuation useful when applying for new funds?
    thanks W
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Yes - an upfront valuation (or two) is useful. You'll need to get them done via the banks rather than commissioned yourself (the banks will only lend against valuations they've had conducted on their behalf).

    Cheers

    Jamie
     
  3. Weaver

    Weaver Well-Known Member

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    does that mean I have to apply for funds first? And does the valuation lose its independence if a bank is behind it?
     
  4. Weaver

    Weaver Well-Known Member

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    Extra question - can a mortgage broker help nail down a property's value? Can I pay a broker directly for their time, eg for a 'fact finding chat' when I might be 6 months away from submitting a loan application?
     
    albanga likes this.
  5. tobe

    tobe Well-Known Member Premium Member

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    Get a broker to do some upfront valuations before committing to a Finance application.

    I personally don't accept funds for a fact find etc. if you don't proceed after I have done the work it's a cost of doing business. Many brokers would be similar I'd say.
     
  6. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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  7. Weaver

    Weaver Well-Known Member

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    I was initially going to ask for a split loan from ubank based on their current val of $250k, when I get my initial loan down to $150, so asking for a $50k split for deposit on IP2. (total $200k against $250k val)

    I then found out construction interest rates are ugly......thus would like a 'solid' estimate (I know such a thing is a unicorn) so maybe an educated estimate instead :)

    would a broker be happy to assist with a construction loan application with the understanding that the loan would be rolled over to a better deal once construction is complete? I understand that there are trailing commissions for some (?all) loans that brokers secure and wouldn't want to undercut them.
     
    Colin Rice likes this.
  8. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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  9. Weaver

    Weaver Well-Known Member

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    This forum has been invaluable in improving my understanding of what brokers have to offer. I'm now completely on board with having someone go in to bat for me!

    Any recommendations for brokers in the Ballarat/Western Victoria region?
     
  10. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Canberra, Brisbane and Sunshine Coast