Hi all,
I am a first home buyer, I am buying a brand new property in Kellyville for $520k and the mortgage is with CBA.
CBA have done their evaluation on the property and came back at $480k…
Am not sure how they've come up with that price because there is no property in the area for $480k, considering this is a new property. I understand that in the current market i might be paying $10k-$15k over but this is $40k we're talking about here.
My question is, Considering am going to live in the property for atleast 10yrs, should i still buy it and not worry too much about the $40k??
If i buy it, i'll be paying $3.5k for Mortgage Insurance.
If i dont buy it, i will lose my 0.25 which is $1.2k and legal fees, which work out to be the same as above.Thanks in advance for your advise!
KennyHi Kenny
We are finding more and more that CBA valuations are coming in a lot lower than clients expect especially on purchases and have therefore stopped using them as we havent had the same issues with other lenders.
My suggestion would be to look at an alternative lender and see what they have to say with their valuation.
Richard Taylor | Australia's leading private lender
Kenny, property in Kellyville of outer western of sydney will or have experienced significant drop in property price up to 20% in the next 1-2 years… bank has already taken account into it especially if you have to borrow LVR > 80%.
I think the valuation will probably close to 450k in long term….due to demographic population who lives in the area.
- One of the option we got is to go with other bank but because we want a professional package with offset account etc.. that put cba on top of the list, going with other bank we'll be paying more on monthly interest and yearly fees
- I am putting in a deposit of 20%. god_of_money – is there any reason why western sydney would drop in 20% in 1-2 yrs?
Many Thanks,
KennyMate, you really need to talk to a good Mortage Broker.
Hi, Kenyus
There was a similar thread some weeks back. This might give you some ideas.
https://www.propertyinvesting.com/forums/property-investing/help-needed/4327326
Regards
Daniel LeeThank you Daniel,
I've already looked at that thread, the only different between my situation and his is that he's doing investment and with investment property normally its a short term thing (lessthan 10yrs?). With me, i'll be living in it for minimum 10yrs or more.
Kenny, my philosophy is always BUY below bank valuation and RUN away if above valuation…
Few years ago.. the property in kellyville or kellyville ridge etc… are selling for 700k… now.. it drops to about 500k on market price.. Coupled with poor public transport design and mortgagee sales ( CAME; COME and COMING !!!!), it has been hammered badly. But again.. it is up to you.. it is your money..A$1200 vs 40k in long term…
Cheers
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