Ouch! That’s gunna leave a mark.

Posted on 08/18/10 in General, 2 Comments

From the file marked “You know when your in a recession when”…..

I saw a valuation today for a property that had dropped just over $200,000 in value over the last 2 years!

OUCH….

It had valued at $580,000 as a home and income in late 2007, then last week when it was revalued for sales purposes it valued at just $365,000.

This was largely because when it was originally valued it was pitched to the valuer as an add value with upside in an up market.

This time round it was valued in a very much more realistic manner.

Either way that’s a huge lose of equity, made even worse by the mortgage which is in fact higher than the valuation making the owner “Upside Down” with their lender.

I really must say that it’s a good time at the moment to be rather defensive, by this I mean protect your equity and your cash flow by taking good care of your properties and your tenants.

And above all else don’t trust any valuation that you didn’t commission yourself, as you never know what instruction have been given to the valuer.

Steve

2 Comments

  1. Gavin

    Very good point Steve. Maintenance should always be done early to avoid excessive costs. It also keeps the tennants happy and they tend to look after the property better if they see you value it and them.

    Posted 8-18-2010

  2. Shane

    Ouch is right … good blog Steve.

    Posted 8-18-2010

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