Low Valuation

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Low Valuation. One of the biggest risks with off the plan investing is a low valuation when they are finally ready to settle. This week is another example, whereby fortunately in this case my client can afford to settle on a new property after a valuation came in low yet again. Over the past few years, I’ve seen this time and time again after clients have come to me after being sold off the plan property. In most cases, clients look to get out of the contract after signing but it’s almost impossible for them to get out of the contract because the developers say, hard luck you’re already committed. We then play a waiting game, for sometime years and finally usually months after they say they will be ready to settle, the property is ready for a valuation. We then cross our fingers and toes, but it’s almost certain that the valuation will come in low, it’s just how low. We then scramble to get the lender to approve loan in two weeks and the client loses many nights of sleep having to fund the shortfall from savings. Low valuations are a huge risk and sadly, it’s not going to get any prettier for new apartments. #youcannotwalkaway