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Hi All .
First off thanks for all the help.
I thought i would give a update and also ask a few question you might be able to guide us with .
We let things go as time ran out but we are now the new owners so we have a bit of time on things .
I believe that the personal loan was not aloud simply because we don’t have enough security .
But this is not correct and because of what they got the valuer to do . I do not agree with this valuer and know that in part they did not do there job correct .
We now owner three proprieties .
3 acres on the edge of town . We paid $25k for this about 6 months ago . The lady before us also did . The problem is the valuer valued this at $25k but i do not agree with this .
The reason for this is i believe they used the past sale for the history of it instead of looking at another similar propriety that has sold .
It had never been advertised and been for sale for years as part of a divorce . The lady that bought it before me , bought it to put a house on it but things changed . She is my friends daughter so i bought it from here privately .
So a block of land , 1/4 acre here is currently making approx $50-80k . One that is on the front of this block which had a old house was sold 4 years ago for $42 and the house bulldozed .
There is another one , 1 acre , no power , no water , within 2 klms which was on for $75k and is now sold .
Land this size is very hard to come buy in this town . The only one i can find that has sold , sold two years ago .
It is a bit further from town , little larger about 100 sq meters and no power and water . Sold for $120k
So how is it that with prices like this that have sold ours is valued at $25k .
Propriety 2 and 3 .
We bought this as lot 55-57 but this is not correct as it is lot 55 & 57 . The bank looked at nothing more that the front page of the contract and a few days before the sale went thought i asked why it was not valued as two proprieties and was informed it was because there was not two titles .
This is not correct as there is two titles clearly on the front page and in the contract and this is one of the reason we bought it .
I believe although as they wont release this valuation that it is incorrect and that it was valued as one lot . I gather this from
the questions and answers i have got from the bank . When i asked the land size i was told it was 2023 sq meters . This again is not correct as it is two lots of about 1011 sq meters .This in itself would have a huge effect of the valuation . It means it is seen as simply one large block with a three bedroom house and a old building ( this building would in fact lower the value and is why it has not sold ) , i have been informed that many people wanted to buy the house but not with the old building .
The bank valued this as $108k in total .
My friend owns something we can compare up the road , 6 houses up . Neat 4 bedroom house with attached old shop . He is under contract for $235k . It is also smaller block and on one title.
But in saying this what we really own is .
3 bedroom house on 1010 sq meter block .
1010 sq meter block with power , water and a partly renovated old shop with a DA for approval to turn into residential .
As far as i am concerned this bank has stuffed it up completely . The value is so far off its not funny and this is because it was not valued as what it is but what they thought it was .
I would put a true value on it as $170k . This is as it stands and this is also confirmed by the real estate i bought it from .
The reason we got it cheap was he was going broke and needed it sold and also because the second building is a down turn . I believe he wanted to sell just the house and leave the old builder but did not have the money to separate.
So what am i missing here . I am not happy that this bank now has 3 of our proprieties under hold but more so that all the extra collateral is tide up in there .
Any help or suggestions would be good . We are currently asking the bank to revalue correctly but again some stupid policy saying we don’t do within 12 months but we may wave this . We are awaiting a response to this.
Pushed into by a bank that has no idea what they are doing would be more like it .
This has not been a rushed process i can assure you but the problem has been as i am seeing now is the people that i have been
dealing with to date .I think it is right that i should have split it . As i said it is two separate proprieties .
Which the bank has treated as one , the problem with this is that one down grades the other .
I have just spoke with the real estate on a try value as it stands and they said if they were to list as two separate lots then one would be $120k and the other $50k .
But yet we paid $108k because they wanted out and the bank even valued it at that . But they tell me that they will only lend what we pay anyway .
As for the willy Nilly , there was one a “s” on that and should not have been . We are trying one credit union.
Correct me if i am wrong but at this late stage there is not much i can do . Settlement is next Friday . But i will know better after it settles and we look at other options .
At this stage we just want them up and running . The restructure can happen at a lot later stage . Its really about getting that second building up and moving for now .
The plan at this stage is to get the home up and running , clean the second building up of junk and then take from there .
You are still not being very clear. Is your bank lending you enough so that you can settle the purchase? Is the personal loan so that after settlement you can renovate the second building?
Correct .
It is just a joke .
Two buildings on separate titles but being sold as one .
First being , 3 bedroom , was rented $220 week .
Second building in bad state of disrepair . But ground floor was a flat . I could turn this back into a 2 bedroom flat for about $25k . \
Top floor , is currently just the framing but i could also turn this into a flat and for both should be able to get some where around the $400 a week .But know some credit bean counter is telling me that i cant borrow the extra $50 to put the second building back into use because it is to risky .
My option is that this person is simply looking at the one rented building . I can not follow this as they could be split and sold each .
I am new to the investment side of things and have to say that it is so far a joke .
This is also taking into account that this bank took weeks just to give me pre approval .
I am trying other credit unions . Even with the hope of half and then revaluing after doing the first floor .
It really is doing my head in i tell you .
Thanks for your help guys .
No , we have a home /investment loan and that seems to be where the problem is .
There is two titles , with two buildings . The first which seems to be the only one the bank is looking at is the rental for now .
The personal loan was for the second building which we wanted to turn into a rental . The plan was to have three rentals over the two buildings and therefore making the extra net income .
Because the bank has refused after approving the personal loan we are now stuck with the second building which we cant do anything with .
It is really hard to understand but the bank said it is too risky to lend a extra $50k on top of the home loan .
Even my banker can not understand why but its something to do with the % borrowed even though the personal home is not security to the houses .
