are there any lenders out there who can lend me money based on the valuation of the property?
Meaning, if a property’s real value is $230,000, but i got it at real bargain for $190,000. Are there any lenders (outside lenders i supose), who will lend me say 90% based on the value (230) (rather than purchase price (180)?
Hi Fullout,
From my experience, lenders take the lower of the contract price or the valuation price. However, this will depend on the length of the settlement, and whether the valuer is recognised by the bank. The property I am presently buying has a September settlement and I have arranged with the vendor to do some renovations before settlement. As such, I am going to attempt to get the property re-valued by the bank closer to settlement so I can borrow based on the true rather than the contract price. My advisers have told me that this is a possibility not a certainty.
Cheers
-NickHi,
My experience is the same as Nicks, which is not to say it can’t be done, just that it might be difficult.
Worst case scenario is to buy, wait six months and then refinance.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Fullout,
don’t know if it will work, nor am I aware of the legal side of things but here we go:
What about a double closure?Keep on doing what you’re doing!
Marco
I have access to a new lender that claims to lend based on value rather than contract price. I haven’t used them yet but beleive the LVR must be less than 80% LVR.
eg.
Val $100,000
PP $90,000 they will lend you 80% of $100,000The trouble is getting it valued at this higher price. The valuer will see what you are paying for it, that would make it harder (but not imppossible) to get the valuation to stack up.
These loans are financed by private lenders and the rates are generally a little bit higher than normal.
If you give me more details I can find out more for you. I would need to know if it is a low doc loan or if you are supplying finacials, and the post code and rough population if it is regional.
My work email is [email protected]
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
from what i gather , it can be done, however not all banks/lenders will do it.
If it is valued by the banks/lenders recognised valuer, then i dont think there could be a problem. Instant equity!!….I like it!!
Tell me where I can get one of these bargains….Im always on the lookout.actually, i stuffed up.
Its probably easier for you to just borrow what you need for the property and refinance after the honeymoonHi Fullout and others,
I have written an article about this very strategy. The article addresses the lending issues associated with this strategy. You can find it on this site at https://www.propertyinvesting.com/freestuff.
It’s the first artice titled “No money down…”
I hope this helps.
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.au
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