All Topics / Help Needed! / Buying a Unit – Bank Valuations

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  • Profile photo of QMQM
    Participant
    @qm
    Join Date: 2009
    Post Count: 76

    Hi,

    I’m looking at a 2 BR unit in Newport Northern Beaches.

    I have bought houses before but not units for an investment property. Comparing to other similar properties within the area, the rental return would be $450/week – and it provides me with a choice for me to live in it myself if I choose to, as it is a good area. I am aiming to purchase it at $450k.

    My questions are:

    How can you estimate what a bank evaluation will be for a unit? Is there a guideline I can follow except for the “market” valuation (i.e. what has been sold within the area?) I am not interested in the property unless the asking price meets bank valuation.

    Secondly, if the unit is an older complex (late 60’s), how is it kept “up to date” with external features? e.g red brick building whereas houses and the other apartments (not many) in the street are very modern. Sinking fund stands at $25k and only 10 units in the block. It is the only “outdated” complex in the street -mainly houses otherwise.

    Obviously I am a little wary with my lack of knowledge of purchasing a unit. I am aware of how it works when purchasing a house as the land speaks for itself. I have looked at many other units for sale within the area and investigated the fees (strata/body corp etc) but this still does not reflect a bank valuation in current times.

    Any feedback will be greatly appreciated.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    QM wrote:
    Is there a guideline I can follow except for the "market" valuation (i.e. what has been sold within the area?) I am not interested in the property unless the asking price meets bank valuation.

    You can opt to use a lender that allows for valuations to be carried out before an application has been submitted. There are a few of them that allow brokers to order the val up front.

    QM wrote:
    Secondly, if the unit is an older complex (late 60's), how is it kept "up to date" with external features? e.g red brick building whereas houses and the other apartments (not many) in the street are very modern. Sinking fund stands at $25k and only 10 units in the block. It is the only "outdated" complex in the street -mainly houses otherwise. Obviously I am a little wary with my lack of knowledge of purchasing a unit. I am aware of how it works when purchasing a house as the land speaks for itself. I have looked at many other units for sale within the area and investigated the fees (strata/body corp etc) but this still does not reflect a bank valuation in current times. Any feedback will be greatly appreciated.

    Because it's older, you'll probably be paying less. Doesn't mean that it's not a good build. Pop down to the strata managers office and go through the minutes/correspondence (you might need authorisation from the selling agent). If there are any issues with the building, they should feature here.

    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 QMQM
    Participant
    @qm
    Join Date: 2009
    Post Count: 76

    Thank you Jamie,

    I have already asked the agent for a copy of the minutes which they are currently organising from the vendor. Good advice – any more you may have is always appeciated!

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

    No worries – if you need a hand with the upfront val just shoot me an email.

    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]

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