I got the valuation of my home to be 550K. But it looks silly. I can understand that the land value has increased from 225K to 295K. But it is not logical that the improvement value has increased from 185K to 255K. Should I dispute this ? or better leave it ?
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Valuation jump from 40K to 550K !
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I was in shock when I found out my CV went from 970k to 1.57mil on Monday morning, a whopping 600k increase. It's now 22% house value and 78% land value. I was thinking who would pay so much money for this little bungalow?? However, when I searched for the increases on my neighbours' CVs on the same and surrounding streets, I quickly realised that it's all relative i.e. they have all increased more or less with the same percentages, between 50% and 70%. That made me feel more at ease as I am not being singled out.
There have been a lot of discussion on Newstalk ZB of how amazing it is that people psychologically feel richer because they've got something confirming that. Putting it on paper does tend to give them that feeling of wealth. It really makes me think...this may be true to a certain extent. Is this just paper money or is it true that I can actually go to my bank and refinance, say to get another 75k for a trip to France and do a small renovation on the house. After all, 75k is nothing compared to the 600k increase in value. What do you think?
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If you can borrow up to 80 % LVR and the value has gone up then I'd assume the answer is 'yes' you could do just that - go to the bank and borrow more. The catch is DSR (debt servicing) i.e. being able to service the new debt. Banks want to lend money - that's how they make money. They will also be just as keen to call in the loan if times get tough.
I agree people will definitely feel richer! And you're paying for that feeling too in your rates I guess
cheers,
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Originally posted by ammar View PostI got the valuation of my home to be 550K. But it looks silly. I can understand that the land value has increased from 225K to 295K. But it is not logical that the improvement value has increased from 185K to 255K. Should I dispute this ? or better leave it ?www.PropertyMinder.co.nz
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