Hi all,
I am currently looking at refinancing to unlock equity to buy my first IP.
When i spoke with St George over the phone, they told me to get a real estate agent to give me a market appraisal and call them back with the figure. The figure i give them, they will take $30k off to get to their evaluation. My house was valuated at $435k. So if they take the $30k off, it leaves me at $405k value and sitting at 83% LVR which really frustrates me for obvious reasons….
I need 80% to unlock equity and not have to pay LMI…..
I called the bank back a few days ago with the market appraisal figure and of course, the operator this time gave me completely different information about the figure they needed for me to be able to unlock equity and leaves me feeling like we are no where near unlocking our equity…. which makes me think i am much further from my investing dream…
I wish all staff employed by the St George bank, all told me the same thing. I feel like i am on a rollercoaster of emotions…..
WoW……………. Sorry I dont' really have any advice but if people out there are good mates with real estate agents……. Need I say any more…. Im not talking about out of control valuations but maybe that 3% as needed could be given.
Does St George do all valuations like this for a refinance unlocking equity??
Hi Goldies,
I don't know what age or income you are on but it sounds like you need to do some more reading on things.
If you are looking at needing $20 or $30k to buy another property then you don't have much equity. How would you manage to pay the monthly shortfall ( assuming the new property was negatively geared) if you were to lose your job or suffer a serioius injury. I know the market has been rising but relying on that alone would be asking for problems.
When you get a loan from St George you will not know the valuation until their valuer does a drive by valuation or a site visit.
If you are trying to release equity by applying for a St George Portfolio loan (Line of Credit) they will use one of their panel valuers to determine how much you can have from a line of credit facility but also they look at whether you can service the debt.
If you are renting out this property access may be required by the valuer to the rented site.When I have applied for this with St George I have used and shown the Council Rates Notice as it has a valuation on it to get an idea of property value however until the valuer sees the site will you have a value for the property.
The bank will have to do their own valuation – maybe they just wanted you to get an estimate so you have something to work on. No use in submitting a loan if your valuation will come in way lower than expected.
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
However they usually lend up to 80% LVR on an LOC so to release equity you need a much lower figure than 80%.
Say loan was $300,000 and property value came in as $405,000
then 80% of 405,000 is $324,000
So Loan + loc = 324,000
So LOC would be $24,000 as it pushes LVR up to 80% LOC LVR limit.Thanks Duckster and Terryw.
Trustee – thanks but you dont have enough information on my situation to make such demotivating comments.
Sorry goldie, didn't mean to demotivate you, just alert concerned that you might not have much equity there.
Perhaps you could provide some additional info.
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