All Topics / General Property / Time Needed for Equity Release

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of se7ense7en
    Participant
    @se7en
    Join Date: 2011
    Post Count: 54

    Hi,

    I have a ‘purchase land and build’ investment strategy where I buy in areas which typically have experienced a high level of growth upon completion of the build. My most recent property has a value approx. 30k higher than when I purchased the land (13 week construction) however it seems I am unable to access this capital.  My broker has assured me that the banks valuers will not even look at property that isn’t at least 1 – 2 years old, this seems crazy (along with every other aspect of bank valuations).

    Is my broker correct? and if so does anyone know of any way around this? Also I am assuming that once the 1-2 year time frame has lapsed I am free to access capital through valuations at my discretion?

    Any info on this would be great.

     

     

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Valuers will often value a property at purchase price if the reval is conducted within the first 12 months.

    However, if the property was newly built, you may have some luck.

    What’s the current LVR?

    Cheers

    Jamie

     

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of se7ense7en
    Participant
    @se7en
    Join Date: 2011
    Post Count: 54

    Thanks Jamie .. this could be good news.

    LVR is 90%

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Have to disagree with your Broker.

    No set time although often hard to get valuers to place a higher valuation figure on a property (over and above land + construction) within 3-6 months.

    It is going to depend on who the lender is and the panel of valuers they use amongst other things.

    Cheers

     

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of se7ense7en
    Participant
    @se7en
    Join Date: 2011
    Post Count: 54

    Thanks Jamie and Richard, this info is invaluable – I can now hopefully get cracking with my 3rd.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I have to say the broker is incorrect, Many lenders will allow instant revaluations while others want you to wait 3 to 6 months.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 6 posts - 1 through 6 (of 6 total)

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