Hi just wondering if anyone knows if the amount of rent received affected a valuation?
thanks
Hi there
It won't effect the valuation. However, the valuer will declare what they believe the market rent for the property should be which could come into play if it seems that the rent you're receiving is way over market.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Jamie's right the valuer does their own rental estimate. I've had a valuation come with a much lower rent than i was actually recieveing and the bank just asked for a Property Manager to verifiy that it was the current market rent.
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
Sorry I don't want to highjack this thread but is sort of on the same line…. Say you were planning to sell in the coming 12 months or so and the tenants lease was up for renewal, could you offer the tenants a period rent free in return for a higher amount for the remainder of their lease. When the rent free period is up advertise the property for sale emphasizing on the ROI and targeting investors chasing high yield. A little bit deceiving, but has any body done this or had it happen to them? Is it even possible?
No intention of doing it just curious thats all.
Cheers,
Nathan,
it was done a lot in the mining towns where this difference was huge, buyers can see through it pretty easily by analysing the current rentals on the market and comparing them to what the property is receiving. if theres a difference, they will factor that in to their negotiations.
Often the psychology can work better in the opposite. If the buyer thinks they can increase the rent by a few percent, they will be more likely to feel they are getting a good deal. Thats been my experience
Josh Atherton wrote:Nathan,it was done a lot in the mining towns where this difference was huge, buyers can see through it pretty easily by analysing the current rentals on the market and comparing them to what the property is receiving. if theres a difference, they will factor that in to their negotiations.
Yep – it was. A lot of lenders have put a cap on the rental yields that can be used for IPs in mining towns as well. This probably won't have an impact on the sale of the property but something worth mentioning.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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