Forum Replies Created
- euro73 wrote:keiko wrote:Bloody valuers, I would Keep it with the same agent, she sounds like she will work hard for you to get this sold, the agent may be able to make the change to the other properties that she sold by logging onto RPData and making the changes, that is as long as they have sold and are not still under contract, (I think this is possible but not 100% sure)
Another option, pay $500 or whatever the cost in your area to do a valuation and then tell that valuer you think it is worth $650,000ish, and provide him with the evidnce of the other sales and why your apartment is better, and hope it comes in somewhere around $620,000 and then have your agent go back to the buyer and say look here is a new valuation,
that other valuer didn't know what he was doing etcThats not going to assist, unfortunately. Neither banks nor mortgage insurers will accept a valuation that has been ordered by the vendor. Thats precisely why lenders have panels of valuers who they assign valuations to randomly, and its precisely why mortgage insurers have check valuation departments. Valuers are liable to lenders and insurers for the information contained in a valuation report, so they arent going to take chances. If they provide a dud report they could be cut from a lenders panel, and that means a huge hit on their income. Valuers are always, always always required to provide 3 comparable sales on a valuation report they prepare for mortgage and mortgage insurance purposes, at a bare minimum, which are officially recorded on an independent dtabase such as Residex or RPData, for example. The 3 comparables usually include one superior, one inferior and one similar sale. They will never never never use data thats not provided by an independent source, so your agent yelling at them and telling them she sold one for 642K wont have one bit of influence, I'm afraid. Until the 642K sale appears on rpdata or residex, the valuer will behave like it doesnt exist. Thats the cold, hard reality.
Besides, who says the valuation that the lender ordered on the 642K sale, was for 642K? It may have been lower. The valuer cant just work on the word of the selling agent. The selling agent has no idea what the valuation came in at. The buyers may have had loads of $$$ and the valuation may have been lower than 642K, but they just wanted that property so they tipped in extra money. No one knows how large their loan was or what LVR it was. You cant expect a valuer to work in theories. They just wont do that.
I have done it before, I have used a bank panel valuer that I have ordered and the bank accepted the valuation, so it can be done.
It may be possible that the valuation for the other property sale was less than $642k but that doesn't mean anything as when the sale price shows on RPData at $642k then the new valuer will take this into account.
ozforex or hifx
Bloody valuers, I would Keep it with the same agent, she sounds like she will work hard for you to get this sold, the agent may be able to make the change to the other properties that she sold by logging onto RPData and making the changes, that is as long as they have sold and are not still under contract, (I think this is possible but not 100% sure)
Another option, pay $500 or whatever the cost in your area to do a valuation and then tell that valuer you think it is worth $650,000ish, and provide him with the evidnce of the other sales and why your apartment is better, and hope it comes in somewhere around $620,000 and then have your agent go back to the buyer and say look here is a new valuation,
that other valuer didn't know what he was doing etcLinar wrote:I have just had a bank valuation done on a subdivision that I am doing and the total value was reduced by the GST that I would be deemed to pay. That is, each block was valued at 10% less than the actual value. Has anyone heard of this before? It seems a bit odd to me because I would only have to pay GST the financial quarter after the blocks have been sold. If the bank has written as a special condition that upon sale of each block the mortgage is reduced by $XXX, what do they care about the amount of GST I will be paying the following quarter.The effect the reduced valuation has had is that the bank will no longer fund the development costs because the valuation came in at much less than I had projected (even though the valuer acknowledged my projected value per block).
Which bank? That bloody bank!
I would appreciate any comments and/or suggestions on how to get the bank to override the valuation.
Cheers
K
I have had a valuer drop 10% on the value before
your next step is to get it valued threw 2 well known valuers and approach a new bank
Okay, so which of the major banks have the lowest LMI?
Which of the odd major would possibly wave the LMI on a 5%-10% deposit?
So if LMI is added to the loan then lets say I buy a house for $500,000 and the LMI is $7,000, then how much will I need to put down on a 5% deposit? $25,000? or $32,000?
Cheers
Hi Robbie
I Know what you are saying, I also come across deals just like what you find,
And the banks would rather loan money on the lower value, which to me makes sense in one way but not in others, Using your figures as an example, I have found a property that I can buy for $300,000 and the bank wants 20% deposit without Lenders mortgage insurance, Which means they will loan $240,000 and I have to come up with $60,000
I have had properties valued a lot higher than the purchase price, and if you said $400,000 less 20% then this comes in at $320,000, which really means if the bank just paid out $300,000 and I put up nothing then they still have 25% safe equity in the deal.
I am still yet to find a bank that will take on my deals, honestly they would have less risk with me and you than some others that are out there paying $400,000 and putting up a deposit of even 20% or even worse 5%
they would have less to loose with our deal.Terry how are the banks at the moment with lending 95%, are they still as strict as what they were 6-12 months ago?
And will they build the LMI on top of the purchase price which would mean you get closer to a 100% loan or do they want the 5% up front plus LMI upfront?Try value the same property you have already valued on RPData & Pricefinder and you will find it is different, one of my properties dropped $50,000 in one week, yea right.
there valuations are a guide only
Some times they work the value out on the price you paid for a property, say your going to buy a house and the old owner paid $500k in 2007 then the valuation may come in at say $650k then you buy the property for $510k then get it valued again and it comes back around your $510k, hows that work, its the same property. i have properties side by side and I checked the value on each and one comes back at $120k higher than the other, I have owned the one that came back higher for a longer time,
some agents will wip out data and put it in front of you when they know it is showing a good value on the report, thats to help the less wise to sign on the dotted lineBanker wrote:My post won’t be popular. I’ve read most his books and seen him speak. Banjo is correct he made no money from his own teachings: – his money has been made from writing books and public speaking :- )
He has lost a lot of credibility in recent years due to 'rich dad' being based on fictional characters and his involvement in network 21 (related entity to Amway). Most qualified people in the finance, accounting or legal sectors will say his teachings are simply flawed and incorrect and he is simply a motivational speaker. Sales people in Real Estate, Amway and other groups targeting the lameman investor use his books to hype up potential investors and make them feel smart parting with their money.Funny thing is that most of his supporters are in the lower social economic classes.
I think his books are great for the teenager / kids learning about money. If your want to be a sophisticated investor you can’t rely on what your learn in year 7 economics,
Banker, would you recommend any books for the more experienced? Or is there just nothing out there? I to have found that most of the books I have read are just to basic and do not teach anything to the more experienced person.
In saying that, sometimes I do pick up 1 or 2 tips from a whole book but weather I ever need to put them into action is another story.I would have paid it,
But I would be looking at my solicitor very closely, espeically seen as you had mentioned you think you should be paying more, solicitor should have had a closer look,If I was the seller, I would fire that lawyer, there is no room for mistakes,
I have had 4 lawyers work for me over time but I have probabaly approached 8, Currently I have 1 lawyer that is really good and one lawyer that I may dump and the rest of them were hopeless costing me money and making stuff ups, 1 lawyer made over 3 stuffups on the 1 job and he didn't want to no about anything when I discovered them.
We pay good money for crap service
tonyf387 wrote:thats sucks sammmee, im in the same situation except i found a unit in the block next door with a fully renovated kitchen and bathroom jsut like the one i was looking at and it was 200k+ the one next door sold for 190k so i put in an offer of183k havent got a response from the real estate agent yet and its being over a week…think hes trying to sweat me out but im massively stubborn
n i aint calling him again until he respondsOver a week, I think hes givin you a miss, a lot of agents are slack and will not follow you up, When they play games like this or are to slack at calling back, I normally call them and put the pressure on, but I stay firm on my price, it just reinsures them that you are keen but your price is what it is and if there any good at what they do then they will get the deal done.
JamesSampson wrote:yes it was possible in the past to find great properties close to our cities that provided a positive cash flow. This all seemed to dry up by 2006. Positive geared properties today are usually found in the morgage belt or in regional areas. Areas where i dont personally invest.Because the majority of quality property is now negativly geared, you can wait 1-5 years before you see a neutral cash flow position. it just is not possible to accumulate 20 properties in a few years in todays enviroment due to stricter lending, higher LVR ratio and most properties will be negatlivly geared.
Thats when you create you own business, until we see positive geared properties coming onto the market again. (that wont be for many years)
It was possible in the past and it is still possible, all my properties are cashflow positive, either by buying them positively geared or turning them positive within the matter of weeks/months.
I have owned businesses which have made me money and I own property that has made me money,
And no I don't live in a regional town, I only buy in cities.Qlds007 wrote:Yes have done 3 or 4 of them in the last couple of months alone.Cool thanks.
when the second mortgage is lodged will the first mortgagee find out about this?My lawyer seemed to think that most banks have it in there contract where it says you must notify them before doing the second mortgage? my lawyer said if i dont make them aware of this then they may ask to be paid back as i broke the contract conditions?
I noticed in your above message you say up until recently the rules were changed?
Qlds007 wrote:Hi JasonIt all depends on the State and the regulation within that State.
For example in Qld up until recently you need 1st mortgagee consent to register a 2nd mortgage but those days have now gone and no consent is required.No other way as 2nd mortgagee is going to want some security.
I assume you cant borrow it from your current lender ?
Hi Richard, Are you sure this is correct? that you don't need first mortgagee consent
I was looking at a similar thing not that long ago, and my lawyer said to me, I would need consent from the first mortgagee if I wanted a second mortgage lodged, unless it did not state it in the contractbest to check with another accountant
yes they want a 2nd mortgage, so if the contract is drawn up showing sale price and then in special conditions it has something like vendor finance $xxx. and obviously with a whole lot more detail
will the banks loan on this even if I do not put any money into the deal and they no the vendor is leaving in the money
or do I need to structure it different and borrow 70% from the bank and then have another contract with the vendor for a loan of 30%yes they want a 2nd mortgage, so if the contract is drawn up showing sale price and then in special conditions it has something like vendor finance $xxx. and obviously with a whole lot more detail
will the banks loan on this even if I do not put any money into the deal and they no the vendor is leaving in the money
or do I need to structure it different and borrow 70% from the bank and then have another contract with the vendor for a loan of 30%what is the best way to draw up the contract?
commercial
hakbm wrote:shab008
We are currently (painfully) building with Dixon homes. My simple answer would be 'run the other way'. However I do understand they have franchise offices so not sure which one you are with. If you have to deal with their head office off Ipswich Motorway then don't bother.
Office staff are great, but really they never tell you anything and are the first to demand something of you.
Management is just not interested in any customer enquiries or complaints.
They still sell on a 14 week build, which normal people will understand might blow out to 25 weeks with weather etc. Well we are at the 8 month stage and still don't have a house despite them not even having to finish for us. We are doing our own painting, rendering, fencing, landscaping, floors.
So just to give you our story. We started with foundations being cut completely incorrectly. Yup they completely cut out a room. As we were onsite at the time at the sales office for our estate we noticed this straight away. Nope didn't have to 'tresspass' onto our property, could see the mistake from the street. Called the office and told them. True enough while we are on the phone with the office the cement truck shows up and the guy starts pouring into the wrong foundations. Clearly neither the cement guy or the foundation guy had the correct information but surely they were using the plan we signed to right… So the first delay start, 3 weeks to rectify this problem which of course then pushes back the slab being poured.
So the slab finally gets poured with the rectification finally done to the foundations. Now we are in the XMAS break and we understood we would already be 3 weeks behind because of this, we planned for it. We were assured we would have a slab before Christmas and nothing more. Lo and behold the trusses and frames show up the week before everything shuts down for XMAS. So they sit there for 3 weeks we figure. No harm done. However they were stacked incorrectly, big trusses on top of small ones, not at all in order, causing the bottom chord of a couple of trusses on the top that were hanging over the side to snap. Great another rectification delay we are going to have to come back to. Supervisor was aware of it and said it would be fixed. We couldn't relaly ask for more could we.
Come back after xmas and still more delay, no rain, just delay getting started. Then because they again notice the trusses are delayed and they have no trades to put it up, again more delay. Then some our supervisor tells the trades to put up the trusses as is. Yup snapped. So up they go. Then the delay for rectification starts again, another 4 weeks down. So by now the trusses and frames have been sitting out in the weather for over 3 months.
Oh lets not forget the broken pipe that was covered up on the outside of the house by one of the machines i guess. Yup supervisor saw this with us. Said don't worry it will be fixed. We are hopefully nearing completion and nobody has fixed it yet.
So thats just the start of the mistakes. Took us 4.5 months to get just frames up.
So yup we were getting near ropeable but figured ok still inside the 30 week mark which we thought was realistic. So just 2 months to finish it off. Again they were not rendering, painting, fencing, landscaping, flooring etc for us. Just brickwork, windows, electrical, plumbing and then handover right.
Yup well we have been sitting at practical completion stage now for 2 months waiting on vanities. Ok so the ones we picked now 5 months later had a delay on them, fine, so any options to pick another one that might be in stock?? Nope. Any option to go pick out one ourselves and get it reimbursed by them to speed things up a bit. Nope. Just have to wait we are told.Anyone picking on us for being precious first home builders can go jump. We were not concerned about letterboxes, paint, taps etc. We were stuffed at foundations, slabs, frames stage. The things that make a house.
By the way we have come to know many many other dixon clients who have had the same structural type problems and delays that could have been better managed which have now blown out their living budget.
This comes down to several things, the people that are being hired to carry out the work are the cheapest people that can be found and these cheap tradesman don't no what there doing as well as the supervisor that is in charge either doesn't no what hes doing or/but I would be thinking he know's what hes doing but he has no control over the main boss wanting cheap trades man so then the supervisor deals with what he has.
This will not be the case in every location as some dixon franchisees will have a lot more knowledge and no what there doing, so the quality will be as you would expect.
I have worked for GJ's in one area and worked for GJ's in another area only 20 minutes apart but run by different owners and the difference between the 2 were miles apart, one had constant balls ups while the other had very few, basicly came down to who ran the jobs and if they had quality people doing the work.
I think if you want a good quality job done then ask people that have had homes built and if they would reccomend that company then at least you will get a decent job, but just remember a building company may have 10 different builders they use to construct there homes so it helps if you can find out the builders name.
A small deposit doesn't mean they havn't any money, A smart operator will put down a small deposit for a few reasons, why give someone else your money to hold onto, because if something happens and you can't get the funds well you may only loose a few thousand or if the agent goes broke then you will struggle to get your cash back and if you do it will take ages. So he/she may still have cash, try negotiate a deal with the purchaser and get as much cash as possible from them, but get your lawyer to do this.
But if they don't have any money and can't pay then there is no point in going to court as it will be expensive and the end result may mean your out of pocket, $5k $10k
n i aint calling him again until he responds
