- LouiParticipant@loui80Join Date: 2016Post Count: 13
Quick one. If the rental on my commercial retail property is higher than what the market indicates, will the bank rest off the valuation figure based on the profit rental made or purely on the raw method of what rental the property should generate on the property? This could be a difference of 150k for me based on my sums.
LouiRichard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Loui will depend on the Terms of the Tenancy and who it is.
Decent tenant will probably reflect in decent valuation.
As commercial servicing is totally different to a resi loan the calculation is not the same.
Yours in FinanceCorey BattParticipant@cjaysaJoin Date: 2012Post Count: 1,010
For valuation purposes valuers will look at how the rental figure compares against the greater market, so they can very well discount the estimate accordingly.