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On the House and Desktop Valuations

Discussion in 'Property Finance' started by Beelzebub, 4th Sep, 2016.

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  1. Beelzebub

    Beelzebub Well-Known Member

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    Just wondering what the formula used by sites such as On the House compared to bank desktop valuations?

    I just typed my properties into On the House and the site gave me a number much higher than reality.

    I know these sites are inaccurate; I'm wondering if the banks use software that is equally inaccurate?

    My theory is that if I go to someone like ANZ who do 90% lends of desktop vals and their software is somewhat similar, maybe I can release equity a little earlier than I was planning.

    Also, while I'm here: are there any other sites such as On the House that I can type my addresses into?
     
  2. Danmicb

    Danmicb Active Member

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    The obvious 'free' sites that come to mind that you can type your address into - realestate.com.au, domain.com.au, CBA property app, investar (sign up for free trial)....I'm sure there are others around.

    I recently had a desktop bank val done by CBA for a property and it was identical down to the dollar amount to the CBA property app....not sure if that is anything to go by though, could be coincidence.
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Range = Avg (Pick 3 low sales in past year) to avg (3 high sales in same time frame)

    Don't worry about condition, land size, related parties, direction of prevailing wind, frontage, walkability, views, etc.
     
  4. Beelzebub

    Beelzebub Well-Known Member

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    Wind direction is very important. Better capital growth with properties in areas with prevailing NW winds.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Wind direction is vital when near offensive industry eg tip, abottoir, crematorium etc
     
  6. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    You have to ask yourself whether you want to build a house of cards based on inaccurate desktop based valuations, or better to build a sustainable portfolio.

    Desktops can go either way so can potentially spite you just as much as provide you with a generous result - it's a lot more practical and sustainable to build a portfolio using structured lending which extends your capacity, than going with lenders just because they give you a desirable inaccurate valuation, but poor long term outcomes. Don't spite future you just to chase short term 'good' results.
     
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  7. Beelzebub

    Beelzebub Well-Known Member

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    Good point. I thought you were being a smart ass.


    Yeh definitely, My general idea is to decrease the LVR as my portfolio grows to mitigate risk: however, this would only be my second IP. The plan is to just get the first two, then be a little more conservative with LVR with every future purchase.
     
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  8. tobe

    tobe Well-Known Member

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    Just get a broker to do a servicing calculator and some upfront vals then decide on future strategy.
     
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  9. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Desktops can be one strategy of a few when determining available equity but as Corey stated not at the expense of your overall strategy to build a portfolio as the wrong lender at the wrong time in the acquisition phase can stop you in your tracks.