Who is Accessing Equity?

@MTR , this one will interest you, I'm sure. Logan, bought 12 months ago, 64% increase as per desktop valuation!!?! A nice deposit for another IP just about to be released by the bank...

 

That is impressive!

 

Well, it is impressive that the bank values this property that much, yes. Can I sell it for that much? No way.

 

Haha..well spend it wisely

 

brilliant, can you share more, was it a Reno ? buying well ?
also, how does a desk top val work?

 

From completing House and Land builds. 80:20 LVR to start. Re leverage 80:20 at end. End up with 95-100% leverage on cost. And therefore 95-100% of my original equity back to recycle.

 

oh I see fudging the valuation, shopping the lender?
never been down this road, I know this is a strategy some use, not sure I would want to do this, but if it works for you great

 

I have easily $300k in equity thanks to recent growth but APRA has ruined my serviceability. I see my equity as a real waste at the moment.

 

?

 

RAMS is the go as you have ABN

 

Have just pulled Melbourne equity to buy in Brisbane. Serviceability was my biggest issue getting across the line.

 

Similar to others really; equity has been hacked out and quarantined in offset accounts, waiting to be put to good use.

Like others; servicing is the hard part but I've worked through challenges with my broker and should be able to get some new loans.

Now it is about finding some good deals!

 

It's just important to understand when doing this that you're not actually @ 80%, but much higher. So if you're looking to sell, you could potentially find you don't have enough cash from the sale to cover the loans. How wise this is depends on overall portfolio LVR, income, cash buffers, risk appetite.

 

Sold one IP and released equity on the others for my next round of managed funds / ETFs / LICs / shares. Diversifying my asset allocation as I am still a bit property-heavy.

 

Valuation without actually inspecting the property.

 

What about the actual mechanics? Does it simply draw on comparable sales? Recent exchanges yet to settle? Full vals?

 

Other settled properties, suburb growth etc

 

Certainly was not my intention to make an example of you . I believe others read these posts so it may help someone have an aha moment.

Apologies for any confusion.

 

Exactly as Jess said, past sales of similar properties.
Its like what is on your rates notice. These are desk valuations done every 2 years (usually January) to base your rates on. Years ago I got a new rates notice and the value went from $450,000 to $650,000. I challenged it with the council (there is a form you need to fill out) and they had to send valuer to inspect it and revalue it. He came and valued it at $550,000. I saved my self few hundred dollars in rates. If it was done for a bank I would have left it.

 

This ^^^^^ illustrates the beauty of having access (via a broker) to multiple valuation types.