Hi Steve
This is my first post & I’d just like to say congrats on a successful seminar & this fantastic site.
Have been reading thru the posts (have not gotten through all of them – there’s so much to absorb!!) It’s been pretty amazing learning all this stuff, I’m keen to get started but the more I read the more I realise there’s so much I don’t know! So much to learn, so little time…I’ve got a couple of questions:
1) Is there any difference between a real estate broker and a real estate agent?2) What’s LVR and what does it mean? Perhaps it would be useful to have a glossary of frequently used acronyms – just a thought.
Thanks!
Camillia
1) Is there any difference between a real estate broker and a real estate agent? No
2) What’s LVR and what does it mean? Perhaps it would be useful to have a glossary of frequently used acronyms – just a thought.
LVR = Loan to Value Ratio such as borrowing 70%, 80% or 90% finance, against the value of the property.Camilla
one other aspect is that the lender will base her/his LVR% on the LESSER of the purchase price or the market valuation.
The market valuation must provided by a professional valuer, whom is usually on the lender’s “panel”
cheers Bruce[
]Thanks for the info guys, much appreciated [
]Hey Guys,
One idea I had in regard to getting around the whole LVR thing. Is if you are able to negotiate not only a below MV deal with the vendor but also a long settlement date….
and you wait on getting the loan until later in the settlement period you could possibly approach the bank and say “yes I purchased the property at ‘X’ but that was ‘Y’ months ago and the property is now valued at ‘Z’, so lend me 80% against that value.”
This could mean that 80% of ‘Z’ is greater then ‘X’ and you would have no cash in the deal, besides the deposit you gave the vendor.
Is the feasible?
Also could you possibly find the most lenient valuer in your area, and then approach the banks which he is a member of their ‘panel’. That way the value the valuer gives, will be closer to your desired level.
Is this also a possibility?
Pete
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]Hi Willi
Re extended settlement. This has been done before particularly in a rapid market also the same concept but doing part of the reno prior to settlement to increase the MV. Both same concept. Risky as you have exchange contracts without the money.
I have done variation to ensure the best deal from the lender in that I had alternate source of finance immediately avail if required. Gives you enormous power to get the best deal.
The problem with identifying a lenient valuer is you need to use them first which costs money. I have heard of people getting 2 -3 valuations done for exactly this reason. I guess it really depends on the size of the deal $100,000 compared to $1,000,000.
hth
Andreas
Hi Andrea
Could you please explain the “variation” that u mentioned in your post?
Thanks!@->
C.
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