Ways to add value - refinance to draw equity

Discussion in 'Styling & Decorating' started by Matthew D, 8th Apr, 2020.

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  1. Matthew D

    Matthew D Well-Known Member

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    Hey PC,

    I'm looking to refinance to draw equity on an investment property in the newcastle area.

    Any suggestions on ways to add value thru minor works?
    Would fresh exterior paint and roof paint help ?
    The interior is pretty modern (renovated approx 2012 before i bought the property)

    Thank you
    Matt
     
  2. Morgs

    Morgs Well-Known Member Business Member

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    Think about things from the perspective of your buyer:
    - Who is the target demographic / typical buyer?
    - What are they looking to see?
    - Make sure your spend is "buyer visible" e.g. is the roof an obvious thing? or will most buyers not notice that and the money be better served on other more obvious things?

    When it comes to drawing equity/refinancing though... sometimes none of these things make a difference and it is a matter of the opinion of the valuer or the AVM deployment. Best way is to seek multiple up front valuations through multiple lenders. Just did one in Singleton and one lender came in 10% above all others and without that he'd still be stuck in 90%+ LVR pricing.
     
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  3. Matthew D

    Matthew D Well-Known Member

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    Just on this Morgs, i'm assuming it is the job of the broker to seek the valuations thru multiple lenders?
     
  4. Morgs

    Morgs Well-Known Member Business Member

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    100% - they should have a good range on panel and be able to do so without fees incurred
     
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  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    brick or WB ?

    ta
    rolf
     
  6. Matthew D

    Matthew D Well-Known Member

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    it is cladding. The majority of surrounding houses in the street are brick. Mine just happens to be the only wb in the area.
     
  7. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

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    What's the LVR? If it's under 80%, save your cash - desktops valuations are usually more generous, unless you're doing really major reno's.
     
  8. Matthew D

    Matthew D Well-Known Member

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    It’s at 85%
     
  9. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Definitely look at desktop / AVM automated vals before spending too much money on renovations.

    Did you pay LMI? Given you suggest it's 85% LVR.