Property Valuation (Excluding GST)

Discussion in 'Loans & Mortgage Brokers' started by wrexter, 19th Sep, 2018.

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  1. wrexter

    wrexter Active Member

    Joined:
    22nd Jun, 2015
    Posts:
    29
    Location:
    Perth
    Hi all

    Would really appreciate some feedback from anyone with knowledge in the area of lending.

    We have been pre-approved loan to build & subdivide our property to build a triplex of units.

    We went for final approval last week and after the valuer issued their report my broker noticed that they had excluded GST in their valuation. This 10% shortfall presents a problem and means it is not enough for final approval.

    My broker stated that this is not normal on a valuation and normally GST should be included. Apparently the bank requested this because subdivision is occurring during construction.

    We are waiting on the bank to discuss internally to find a solution (if there is one).

    Has anyone experienced this?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,668
    Location:
    Australia wide
    yes, pretty normal i think on 3 units.
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,599
    Location:
    Gold Coast (Australia Wide)
    Normal haircut. As is the in one line discount

    Do u have enough equity to make it fly ?

    If not,there are lenders that will do 3 on one title with 90 % lend

    Ta

    Rolf