Forums / Property Investing / Help Needed! / Have to wait 6 months.

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  • Profile photo of kirbonavichkirbonavich
    Member
    @kirbonavich
    Join Date: 2012
    Post Count: 23

    Long story short, bought my first rental in September, basically costs me nothing while tenanted. 

    Rang the bank to see what the protocol was for purchasing another property in the near future. I was told I would have to wait for a period of 6 months then the bank would revalue (The woman on the phone also stated that the Commonwealth never values a property higher than what the purchase price was, in that circumstance she was wrong).

    Question being: Can I go to another bank? Also, what is with the 6 month rule?

    Profile photo of wilko1wilko1
    Participant
    @wilko1
    Join Date: 2010
    Post Count: 510

    If you have the cash. You could go out and buy a property tomorrow.

    that would mean minimum of 5 percent deposit and 5 % to covert stamp duty and legals. So say 10 % of property's value to be safe. 

    Unless you do work/ renovate or make improvements to the property. They might not revalue it for up to a year- or if booming markets could be as a minimum 6 months. But a valuers statistical evidence would have to show increasing sale prices in the area. 

    Banks can value a property higher then contract price but in the loan documents. They state they will lend as a percentage LVR, loan to value ratio of which ever figure is lower between the contract price and the valuation

    Ie if you bought at 300k and the value came back 330k they will lend you 80 % on 300k but if the value came back in at 270k they will only lend 80 % on 270k..

    Profile photo of wilko1wilko1
    Participant
    @wilko1
    Join Date: 2010
    Post Count: 510

    Couldn't really see going to a bank as another option. Unless you said you did work on the property and ordered a upfront valuation see if they will lend on a higher value. But they will also look at when you purchased it. And the new valuer will see the previous valuers report and 9 times out of 10 will value the same unless they can see significant changes and improvements. They don't want to risk their insurance 

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Kirb

    The prob you face is that you're restricting yourself to the one lender so you're at the mercy of their policies. Speak to a good finance person about your options and you might get a different result.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of jenni_nextplace.com.aujenni_nextplace.com.au
    Member
    @jenni_nextplace.com.au
    Join Date: 2013
    Post Count: 36

    All of the above and some of the banks are really tough or lost the plot at the moment. Partner just purchased a property though the CBA. Had over $400,000 in equity. 1 mortgage fully paid, enough cash to pay off the second mortgage once it went off fixed.  He was purchasing a property for $175,000 yet still had to get everything valued.  This took them nearly a month to approve the mortgage. Date of unconditional had to be extended 4 times. He has been with this bank his entire life. 

    He certainly was NOT HAPPY JAN …..

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404

    So I'm assuming you need to draw money out in order to buy again? Otherwise it's not an issue. Has it really gone up? Did you buy it heaps under market value? Have you done a reno? My question is- why is it worth more than you paid?

    Yep CBA tend to stuff around. I wanted to buy a burnt house. VERY cheap (land value). In the end I told them to stick it as I'd just pay cash and get finance with someone else once it was finished. At the last minute they came up with the money.

    A good broker would probably be in your best interests. You may be able to refinance with another bank?

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    Your original LVR will need to be considered. If above 80% then LMI was payable.

    If you refi elsewhere you may be up for another LMI payment where as you will get a credit if with the same bank. 

    Several ways to determine a valuation but will come back to LVR/LMI to determine the viability of a refi.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of kirbonavichkirbonavich
    Member
    @kirbonavich
    Join Date: 2012
    Post Count: 23

    Well, I have the money to use on another property, but I like a buffer. Brings me piece of mind and helps me sleep at night, financially probably not the best way to go about it but thats my call. 

    The property was purchased for $315k from a family that had to sell then and there basically. The bank valuation came in at over $345+ 

    I will be calling another bank on Monday to see how we go so ill be sure to keep you posted. 

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Hi David, tread carefully.  Be sure that each time you speak to a bank they are not hitting your credit file.  In this regard, it would not take long before you have destroyed your credit file and nobody will deal with you for 5 years.  As Jamie said, talk to a decent finance person that knows which banks would deal with someone with your circumstances.  Jamie is held in very high regard – give him a call.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

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