What are you seeing with the bank financing environment?

[Nick G]

I see this sometimes with non-investor specialists weighing in. We had a sale fall over once because an Auckland based broker talked a buyer in Christchurch out of an area based by what it was like when he was in high school 15 years ago. I guess he thought he was being helpful but it was a case of the butcher weighing in on property as an investment.

[Davo36]

I see this sometimes with non-investor specialists weighing in. We had a sale fall over once because an Auckland based broker talked a buyer in Christchurch out of an area based by what it was like when he was in high school 15 years ago. I guess he thought he was being helpful but it was a case of the butcher weighing in on property as an investment.

When I was an agent, the main people who would kill a deal were the purchaser's accountant or the purchaser's solicitor. Both intent on protecting their client from buying a 'risky' property. And thus protecting them from making millions in capital gain

9/10 times if someone went away to check with their accountant, it was all over.

[Nick G]

This chap bought two weeks later and will do very well, so a happy ending. Last night someone was asking me for an opinion on a site in Auckland with Terraced housing potential, I answered him with "I don't know, but here are the questions I would be asking myself".

[Chris W]

I was aware that banks have their own panel of valuers for property valuations. However I heard that the BNZ recently instituted a policy that the bank must select the valuer in undertaking the property valuation for lending purposes. The BNZ does not allow the borrower to select the valuer from the approved valuer list. (it was allowed to before this policy was instituted). Is this the same for all other banks now?

[Don't believe the Hype]

I'm pretty sure BNZ is instituting the same policy as ANZ - I'm told there had been some people moving between banks at senior levels bringing their processes.

It is is possible for your banker at BNZ to request a valuation and your preferred valuer come up.

I personally find the valuation process majorly flawed.

[Nick G]

BNZ told me this recently. I have a 9 month old valuation by someone on their panel and it's cheaper for the same guy to refresh it than to do a whole new report, but no. Very annoying.

My understanding is it's an art not a science and there are different ways to assess a property... so a crapshoot going forward.

[Davo36]

Haha, I remember Bob Jones in one of his books speaking dismally about valuers. He said his approach was to get them onsite and basically rant at them

[Chris W]

My 2 cents worth
1) are banks reviewing and reassessing the market values of the existing property collateral they hold?
They have made some recent changes to make more things a "credit event" so they can reassess your position. We asked to keep a loan on IO this week and they said that is now a full "credit event".

Bob,

You mentioned that rolling over a loan on IO is now considered a "credit event", whereby the bank can reassess your position. What were other new items which are now reclassified as a "credit event"?

[Bobsyouruncle]

I only know the ones I have had to deal with.
Rolling a loan
converting from IPO to P and I or vice versa.
Any transaction if your servicing included overseas income.

[sidinz]

So if banks are moving to a model whereby they have to order all valuations themselves through their panel. what happens when borrowers want to apply to more than one lender? Do they have to pay for multiple valuations, one per bank?

[eri]

an example of what our oz bank masters are doing in oz

Melbourne-born man loses $71,000 deposit in foreign investor crackdown

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11892187

[JBM]

an example of what our oz bank masters are doing in oz

Melbourne-born man loses $71,000 deposit in foreign investor crackdown

http://www.nzherald.co.nz/business/n...ectid=11892187

I understood they will do the same here now ?

[Beano]

So if banks are moving to a model whereby they have to order all valuations themselves through their panel. what happens when borrowers want to apply to more than one lender? Do they have to pay for multiple valuations, one per bank?

The last valuation the BNZ commissioned the Westpac accepted the valuer and valuation.
The valuation was readdressed to the Westpac at no additional cost.

HSBC said they would also accept the valuation

Panel valuers apply to all commercial properties

Even properties of only $2m

[Wellington Broker]

The last valuation the BNZ commissioned the Westpac accepted the valuer and valuation.
The valuation was readdressed to the Westpac at no additional cost.

HSBC said they would also accept the valuation

Panel valuers apply to all commercial properties

Even properties of only $2m

Westpac is the magic word here.

[flyernzl]

When I was an agent, the main people who would kill a deal were the purchaser's accountant or the purchaser's solicitor. Both intent on protecting their client from buying a 'risky' property. And thus protecting them from making millions in capital gain

9/10 times if someone went away to check with their accountant, it was all over.

A lawyer or accountant will, when consulted, will always tend to advise against the deal.
From their point of view it makes sense to do so.

If they say "Yes, go ahead", you do so, and the deal goes sour you blame them.

Whereas if they say "We don't recommend you do that" and:
you take their advice then there is no deal and no blame
you dont take their advice, do it and it goes sour they can say "We told you so".

Therefore being negative is, for them, the default option.