No valuations

Some friends are buying, Brisbane , 500-800 k Mark, banks aren’t attending for valuation, nor doing a desktop.

LVRs are 90-95%

Seem weird?

 

It does sound a bit strange, yes.

But on the flip side; inner to middle ring Brisbane in most areas seems to be doing very well at present (obvs with the exception of high rise apartments of course..); but in terms of houses, duplexes, low-rise villa/townhouse blocks; what little stock is available; appears to be flying off the books and at asking or higher than asking prices at times.

I NEVER would have thought Brisbane would have fared better than Sydney and Melbourne during covid but, well, here we are. Perhaps this is what is giving lenders confidence on some property transactions there; to just use desktop-vals only and not walk-through vals.

Perhaps inner to middle ring Brisbane's success at the present is due to an entire confluence of factors (i know there is a separate thread all about Brisbane market growth already...);

- Syd and Mel demand who are getting out of the bigger expensive cities because their work allows them to work from anywhere; so they move for lifestyle and/or cost of living improvements to sunny Brisbane?
- Brisbane does/did have a large foreign student market yes, but not as severe as Syd and Mel so perhaps less affected by fleeing foreign students due to covid?
- Native/local Brisbane aspirational first home buyers who perceived themselves as outpriced from their own backyard city; are seeing affordability due to lower mortgage rates (cheaper holding costs); grants on offer from fed and state govs; and covid impact reducing their holidaying spend (because they can't travel) and consequently have good savings for a home deposit now?

 

Brisbane is faring better. I suspect banks will pull lending from bad areas and loosen it and direct it into good areas.

These ‘good’ areas I see being those with planned infrastructure programs and strong migration trends.

 

What can you tell me about Moreton Bay?

 

The desktop valuations are coming all over the place though. I’ve had two done recently, one in BCC and it came in about $100k lower than expected (based on sales of near identical properties) and the other in Moreton Bay came in about $100-$150 higher than expected. Eg I purchased the house 18 months prior for $150k less than what the valuation was ‍♀️ If I could sell it for that then I would have.

 

Not that familiar, but Southside bris is strong

 

It’s a very large area so lots of different markets

 

Unless the lender has a policy to accept COS price (which they still need to run through their val system) they will be doing a valuation of some sort, Desktop/AVM/Kerbside/Full, no lender would risk not doing a valuation, just doesn't work like that.
Likely they just aren't aware of what's happening behind the scene at the bank.