propertyvalue.com.au and other value estimators

Discussion in 'Property Information Resources & Tools' started by Fortune Favors the Bold, 8th Dec, 2016.

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  1. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    Hey gang - I have a question about the accuracy of sites likes propertyvalue.com.au in guesstimating the value of a property. Specifically, I bought a property in Fitzroy North, VIC, in April of 2016. As of today, propertyvalue.com.au is suggesting that the current value is 35% higher than when I bought it. Obviously this seems impossible. Are these sites accurate at all? And what's the best way to estimate value without hiring a valuer, or is that it?

    Thanks!
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    depends on what the purpose of determining the value is

    if its to get a loan, then a CBA avm to 80 % may work a treat :)

    ta
    rolf
     
  3. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    Thanks Rolf. It would be to get a loan. The current loan is with ANZ. We maxed out serviceability at the time of purchase, so we're trying to put together a good strategy moving forward. Any thoughts are most welcome...
     
  4. Jacque

    Jacque Well-Known Member Premium Member

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    These automated "valuations" are rarely worth the paper they're printed on (or in today's digital age the amount of wasted screen text :D) as they're generated only by data and often serve to confuse buyers and sellers even more....

    The key to being able to accurately appraise a property is a little more complicated than simply comparing nearby recent sales and churning out a computer-generated report that relies on these exclusively. Knowing what an individual property is worth means being up to date with the often unique factors that influence price and we know these can vary enormously, depending on location, stock levels, similarities (or dissimilarities) of competing properties, minimum no. of statistics (which can rend results unreliable) improvements, floorspace, zonings etc.

    As useful as the databases are, they are certainly limited in their abilities to “value” a property in the real world. A statistical modelling programme is never going to be entirely accurate and should ideally be used in consultation with a real estate professional such as a sellers/buyers’ agent or valuer, who will be able to provide a much clearer and realistic appraisal of a property.

    Hopefully that helps but in a nutshell do your own "human" on the ground research if you don't want to engage someone with credentials to assist. Good luck :)
     
  5. wombat777

    wombat777 Well-Known Member Premium Member

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    Use the force!

    Jedis can get a more accurate valuation that way :p
     
  6. Ross Forrester

    Ross Forrester Well-Known Member Business Member

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    The automated programs are not completely reliable at this stage.

    However it is fair to say that the data, and depth of information, that these programs are accessing is increasing exponentially. Within 10 years the way we value and understand real estate could well be different.

    However for now they are more of a way to generate a discussion.
     
  7. Terry_w

    Terry_w Mortgage broker licenced 4 tax/legal advice Business Member

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    If you were maxed out 6 months ago then you probably wouldn't even qualify for the amount of lending you have now - unless there was a dramatic up in income. You might be stuck with ANZ.

    If you can still service ANZ can allow modelled estimates in some situations and it is likely to be based on the same data so you might be lucky.
     
  8. Eddie

    Eddie Active Member

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    I've used pricefinder and you can get good info. from it but for valuing it's pretty much garbage.
     
  9. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    Yes, I reckon you're right. And no, unfortunately there hasn't been a dramatic uplift in income.
     
  10. Terry_w

    Terry_w Mortgage broker licenced 4 tax/legal advice Business Member

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    What about a dramatic reduction in debt?
     
  11. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    We've put 9% of the loan value into the offset since settlement in June (purchase was made in April).

    It's an investment loan, IO for 10 years, taken out at 80 LVR on the purchase price (we couldn't borrow 90% due to servicing).

    We're currently renting it out while living overseas. Unfortunately we haven't had the chance to establish it as a PPOR for tax purposes yet because we bought it while overseas and haven't had the chance to live in it.

    The plan at this point is to move in for a brief period when we can, establish it as a PPOR for tax purposes, move back out and continue renting it out, claim the negative gearing within the 6 year rule, and either continue living overseas or rent a less expensive place somewhere in Australia for ourselves, etc.

    The house does have pretty good renovation potential, though I'm unconvinced that's an effective strategy in this case. A property on smaller block a street away, in an inferior location, renovated and with a second story added just sold for 57% above our original purchase price.
     
    Last edited: 8th Dec, 2016