All Topics / The Treasure Chest / Valuation Costs

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  • Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225
    August 31, 2003 - 10:57 am

    Hi all, I was just wondering how you go about getting your property portfolio valued when you are purchasing more property. Do you have to get each property revalued each time you purchase one more property? My bank charged $150 for each of my four properties when I refinaced with them. If you had say 30 properties, and you are trying to finance a 31st, do you have to pay the bank $4,500 to value each property you own?
    If you have 130 properties?!!…..
    Jim.

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    August 31, 2003 - 11:07 am

    Jim,

    Consider a Professional Package. See if your bank offers it. This means no reval costs.

    Cheers,

    Simon Macks
    Mortgage Hunter
    [email protected]
    0425 228 985

    Profile photo of stargazerstargazer
    Participant
    @stargazer
    Join Date: 2002
    Post Count: 344
    August 31, 2003 - 11:08 am

    hi jim

    at one stage the bank was great just ring up after 12 months and they would do a valuation for fair market value at no charge.

    Now they will only do a valuation if you are purchasing a property for loan purposes only.
    Still no charge at this stage.

    Im sure some of the mortgage brokers will have some answers.

    regards
    alf

    Profile photo of muppetmuppet
    Member
    @muppet
    Join Date: 2003
    Post Count: 900
    August 31, 2003 - 11:18 am

    Hi Guys

    What a b…… The bank insisted I get one of my properties valued and the valuer charged me $337. Still the property (nowhere in sight of the sea) in an average sized NZ provincial city has increased in value by 20% in 12 months.This has pleased the bank anyway.

    Regards

    Profile photo of calroncalron
    Participant
    @calron
    Join Date: 2003
    Post Count: 78
    August 31, 2003 - 3:16 pm

    I am wondering if revaluation is seen as a capital cost or a deductable cost… Anyone know??

    cheers

    Calron the Alcamist
    Turning things into gold is fun.
    [email protected][;)]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    August 31, 2003 - 10:05 pm

    Hi Calron

    A valuation fee is classified as a borrowing cost and therefore deductible.

    Cheers Richard
    [email protected]

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Australia's leading private lender

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598
    August 31, 2003 - 11:42 pm

    Hi Dogs

    1. Don’t have loans cross collateralised so that you don’t have to revalue all properties.
    2. Most professional packages will not charge for this (e.g. Westpac, ANZ, CBA, NAB). Most allow you to do at least 1 revaluation per year at no cost… CBA & NAB are unlimited.

    The Big 4 are by far the most competitive in this market.

    Cheers

    Stu

    Property & Finance News
    at http://www.prosolution.com.au

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225
    September 1, 2003 - 1:49 am

    Thanks all. The charge I incurred was from Westpac in setting up my professional package. I haven’t tried to buy any more properties since. I guess I’ll find out everything when I do.
    Regards, Jim.
    PS any loan costs have to be depreciated prime cost at 20%, ie over 5 years. I was allowed to write off the written down value of all previous loan costs immediately when I refinanced however.

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