Get the most out of your equity

It’s quite common for a bank valuation to be carried out when a homeowner or investor wants to leverage equity in their principal place of residence or investment property. There are so many variables that are taken into account when valuing a property but if you are looking to boost the end result – consider this:

How does your property present? Gardens and lawns need to be in shape, de-clutter the house, detail your home with a local cleaner if needed, turn air conditioning on, make fresh coffee :-), open the blinds and present your investment in the best possible light.  Tenanted properties need the right rental mangers in place to give appropriate notice and encourage tenants to present your investment in your favor.

Have information to share? Hand over a copy of the floor plans, building certifications for patios, carports, extensions or the pool.  Short list recent improvements made with realistic costings.

Still renovating? Ensure projects are completed prior to your inspection to avoid embarrassing yourself with a deflated value, as the date of inspection is the effective date of valuation.

Take advantage of your properties key features – waterfront owners should arrange inspections at high tide, properties affording north and eastern aspects promoting the balcony or deck would benefit with mid morning inspections.

Most importantly – NEVER OVER CAPITALISE. Cost does not always equal value.  Where refurbishments are needed, use a guide of 10% of the property purchase price say $40,000 budget for a $400,000 house.  This 10% will be the most effective rate of return on your outlay.  With guidance your budget could pay HUGE dividends improving the value and equity base of your investment.

Information courtesy Tony Coughran Gold Coast Buyers Agent & Valuer

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