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Valuation of PPOR

Discussion in 'Property Finance' started by Leo1234, 29th Sep, 2016.

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  1. Leo1234

    Leo1234 Member

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    Hi guys

    Just wondering what the broker opinions are on kerbside vs full valuations. I have a PPOR with BOM and need to draw equity to create a split and pay for an investment property deposit.

    A kerbside valuation was done and it has come back at $500k. I bought the property in October last year for $472k.

    I ideally want a valuation of $505-$515k to have enough money for deposit and stamps etc. I have spent over $20k on the landscape of our townhouse.

    I do not want to move lenders so need to stick with BOM. Do you think there is a chance that a full valuation will come in lower than a kerbside? Or will the valuation be the kerbside valuation at a minimum and any extra value would be a bonus? I can deal with the $500k value if I have to but can't afford for it to come in any lower than that.

    Cheers
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    You could try for a full val with another lender in their group - WBC, or St George. If it's good you can use it, if it's not good it won't be on their file.

    Is there a specific reason you don't want to move? Sometimes the small hassle of moving is outweighed by the benefits.
     
    Redom likes this.
  3. Redom

    Redom Mortgage Broker Business Member

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    Could also take the equity gain now, go again with a full val post drawdown of funds to replenish your reserves. Takes the risk away of the full val overriding the kerbside. Couple more months in a rising market may not hurt either.

    In general, i find kerbsides produce better results for properties that please on the eye outside than full vals. However if you've done work on it on the inside, than a full val is likely to yield a better result.
     
    Tranquilo likes this.
  4. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Hello you....i mean me..i mean who..:confused:
     
  5. Leo1234

    Leo1234 Member

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    Loan is only 11 months old so don't want to get a claw back charge from the broker and also I need the money quickly to pay for deposit. Won't have time to wait for a Westpac val.
     
  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    You could request a full valuation sighting that the kerbside didn't take into account certain internal aspects of the property. However - as mentioned above, if it comes in lower than the kerbside you'll be in a worse off position.

    Cheers

    Jamie
     
  7. Leo1234

    Leo1234 Member

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    Good idea. Maybe just stick with what we know now and not risk a lower valuation that may stop the deal
     
  8. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Ask your broker to order one - it will take 2 days.
     
  9. Leo1234

    Leo1234 Member

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    Hi twin
     
  10. Watson1

    Watson1 Well-Known Member

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    Are you sure the valuation was not a model valuation?

    I have not seen the option to order a kerbside with BoM only model valuations and full valuations when ordering an upfront valuation.

    I have only ever had a kerbside ordered by the credit.
     
  11. Leo1234

    Leo1234 Member

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    Just got a call from my broker. Looks like the decision has been taken out of my hands. He said the assessor has called him and already ordered the full val because the system said they weren't happy with the kerbside for some reason.

    Let's hope it comes back at the right value with the full val. Thanks everyone for your advice. Appreciate it.
     
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  12. Leo1234

    Leo1234 Member

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    You are correct. The kerbside was ordered by credit when they received my application
     
  13. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Good luck Buddy,
     
  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Suggestion/challenge

    what we want or dont want vs whats best for us is often NOT the same.......................

    ta
    rolf
     
  15. Leo1234

    Leo1234 Member

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    I would usually agree with you Rolf but in this instance I can't see how it would have been better for me to move to another lender. First of all I would have had to pay my broker a claw back fee and secondly I needed cash out asap to pay for the deposit. It would have taken at least 10 days for BOM to accept the discharge after being approved at another lender so this is the only option my broker felt was going to give us the cash quick enough. I am happy for the lending for the investment property can go to another lender.
     
  16. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Understand

    In need there are lenders where there is no discharge :)

    Boom

    Sign your mortgage docs

    cash in bank 2 to 3 days later

    All of which is only relevant if you cant get the val from new lender .

    Clawback may be a cost of business, just like New lmi, or cap gains tax etc

    If you are getting the result you need, then this all isnt needed ;)

    ta
    rolf

    PS and the way the draaagin works at the moment, we can have a loan settled with lender X before STG issue docs................
     
  17. Leo1234

    Leo1234 Member

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    Thanks for opening my eyes a bit. That could have definitely been an option. I guess I just didn't think the cost of doing business by moving was really necessary at this point when the same outcome could be achieved where I am.

    Do you find that BOM isn't a good lender to be with if I want to go further in my investment lending? Or more the dragggin their feet side of things?
     
  18. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Imnot one for churning loans - pointless thing for all concerned.

    if BOM can / did what you need thats great.

    I can only comment on my side of BOM, lets say its variable :)

    ta
    rolf
     
  19. Leo1234

    Leo1234 Member

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    Thanks Rolf. I will take your advice and never go fixed with BOM ;)
     
  20. Bran

    Bran Well-Known Member

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    You need to change your name. Surely. @Simon Hampel