Valuations in current market

Looking at getting a 2nd IP.

Since the media is saying 30% decrease in property value recently, I guess its a bad time to get a valuation of ppor and first IP?

Or would you guys just go ahead and try?

Is getting a valuation a step forward in the right direction for buy ing 2nd IP?

 

Firstly, forget the funny papers.. I haven't seen any property prices in Sydney drop as much as the predicted 30% drop.

Depends on the purpose of the valuation.

Chances are you're intending on leveraging your PPOR then its for mortgage security purposes and the PPOR valuation is dependent on the valuer, available comparable sales evidence that have occurred in the area in the last 3 to 6 months.
For instance your neighbour's property sold for $1m and your property is more or less similar to your PPOR then the valuation will come in at $1m.

In terms of direction i.e. steps, speak to your broker/bank. Afaik it doesn't cost money for your broker to initiate a valuation on your PPOR which will give you a clearer position re LVR and other factors.

 

Did a valuation a few weeks ago and came back much higher than I expected. Both ANZ and Macquarie came back with the same figure.

 

Same here. 3 properties in Melbourne. CBA desktop valuations each came back $100-$200k more than what I think they are really worth. The valuer just went with my highly inflated estimates which was surprising! This was for a refinance.

 

I've done valuations for the same property for 3 different banks, luck of the draw I'd guess.

 

Getting a valuation wouldn't hurt you. Especially when it's an upfront Val and it's for free.

Youd rather do it now then do it in the next 6 to 12 months when it drops.

 

What are Macquarie like for revaluations? IP purchased July 2019, Brisbane inner/middle southeast, approx suburb median price.

 

So what's the recourse then, can you request a site visit or challenge with additional data?

Also, any scope negotiating a bit off their fixed rates. I managed to get 10bps off cba 3year recently for a sub 500k loan, so wondering if about experience with macq in this regard

 

You can't challenge a desktop assessment because its a 'desktop'. If you want accurate valuation report, best to request a site inspection.

When the val amount is below what was expected, the job gets escalated to a shortform (internal inspection).

 

Thanks, that's the clarification I was after.