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Valuation during renovations - Advice required

Discussion in 'Property Finance' started by dan_89, 7th Jul, 2015.

  1. dan_89

    dan_89 Well-Known Member

    Joined:
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    Location:
    Melbourne
    Hi All,

    I am in the process of renovating my current PPOR and looking for advice on ideally when I should be ordering a valuation to redraw equity for next purchase.

    Internally I have gutted and redone (kitchen, bathrooms, floors, window coverings, painted throughout etc etc.) so effectively the home in brand new excluding the laundry which is in progress..

    Externally there is plenty of work remaining. Plans externally noted below;

    - Build deck/pergola
    - Fix up carport (currently in a pretty bad way)
    - Paint all timber windows
    - Replace gutters and fascia where needed
    - Build small deck at entry
    - Spend approx. $5k on landscaping.

    Given the list above I am looking to stick to a budget of approx. $20-$25k.

    How will these changes effect the overall valuation?

    Is it worth waiting until the renovation is COMPLETE?

    OR

    Order valuation & complete external works without urgency, freeing additional funds for next purchase?

    One of my loans on the property has recently become P+I so ideally would like to refinance back to IO asap at which point will require valuation.

    Thanks in advance!
     
    MJS1034 likes this.
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    If it's just to go IO, you're probably fine to do it now, however if it's to do with an equity release I'd wait and do the externals first. First impressions count :)
     
    albanga likes this.
  3. Marty McDonald

    Marty McDonald Mortgage broker

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    If you can wait till its finished do that. Those costs sound very cheep to me BTW Id double it.
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I'd wait until all the work is complete.

    I've seen valuers go to town on reports where the property is still under renovation.
     
  5. dan_89

    dan_89 Well-Known Member

    Joined:
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    Location:
    Melbourne
    Thanks for the replies.

    Marty - The figures noted are definitely "approx" but I don't believe it will cost much more than that given 80% of the work will be completed by myself. Gutters have been quoted around the $4k mark. Deck pergola i'm hoping to stick below $10k. Paint call it $1k. Deck at entry $3-4k. $5k landscaping.

    Looks like I will stick it out a little longer and try complete as much as possible. I was under the impression that valuers would be more concerned about the internal aspect of the home rather than external cosmetic items such as window colour, landscaping etc. but I guess as Jess noted, first impressions count!
     
  6. Big Red

    Big Red Well-Known Member

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    Any photos? I think best to wait till all of it is done that way you get the best possible chance.
     
  7. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Definitely get it 100% right before getting any valuations completed - never give them a reason to make you and your brokers life hell.
     
  8. dan_89

    dan_89 Well-Known Member

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    Location:
    Melbourne
    See below link to the renovation thread from Somersoft, I've uploaded a few details/pics along the way.

    http://somersoft.com/forums/showthread.php?t=107928

    I've also attached a couple of images showing the home externally. I think a nice sized deck/pergola out the back would help out with increasing the valuation but would it return more than Id have to spend? (approx $10k)
     

    Attached Files:

    Sharynl likes this.
  9. Mick C

    Mick C Well-Known Member

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    Def order a FULL val after renovs ( not drive by or desk top val)
     
  10. Hwangers

    Hwangers Well-Known Member

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    Sydney

    Hello - most valuers would value the property on an "as is" basis - i.e. the current condition of the property, if you have gutted the whole place in preparations for the reno then the property would not be livable, as a result the valuer may only value the land, you may ask for an "on completion" valuation which is pretty much what it means - may need to provide plans, any DA etc. depending on valuer - best to be prudent and wait for reno to be completed then order val then redraw on equity
     
  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    full val ONLY on completion.

    I have had valuers complain about "incomplete" because door handles werent fully fitted

    ta
    r
     
  12. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Def do it after as all above have stated.

    May not need a val or a full app for P&I to IO depending on your banks policies and procedures. Some its a phone call and others a 2 page tick and flick, and then others will put you through the ringer.
     
    MJS1034 likes this.