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Improvements to your shared ownership home

The valuer will assess any improvements you’ve made to your home and will take them into account in the valuation. Some examples of changes that may add value include air conditioning, deadlocks, security screens, a bathroom or kitchen renovation, a patio, reticulation, or a shed. 

We have a list of improvements that are considered to add value to your home. You can view this list on our Notice of Intent form. You can request this form by emailing customer@keystart.com.au or calling 1300 578 278.

The Allowable Owner Improvements list includes improvements considered to add direct value to your home, based on real estate standards. We won't consider other items not included on the list.

Some of these improvements require evidence that you have shire approval before your valuation can take place, so keep your paperwork somewhere handy. 

Please note: Any improvements made to your property after the valuation takes place won't be included in the valuation report.

Let’s look at a valuation example:

Alex and Taylor have a shared ownership home loan for 90% of their home. The Housing Authority holds a 10% share. Their property has been valued at $420,000 meaning that the Housing Authority’s share is worth $42,000 without taking into consideration any home improvements.

During their time in the home, the couple made some improvements to their home. The independent valuer has indicated that these improvements added $8,000 to the overall value of the property. This means that the value used to calculate the Housing Authority’s share will actually be based on the current value of their home less the value of the improvements Alex and Taylor made to their home ($420,000 - $8,000). 

Based on the improvements the couple have made, the Housing Authority share will be calculated on this reduced amount ($412,000), so the 10% is now lower at $41,200.

If a single improvement has added upwards of $5,000 to the overall value of your home, we’ll require receipts to show the payment amounts. If you cannot locate a receipt that shows this, the maximum value for this item is $5,000.

Let’s look at an example with home improvements:

Nuong installed an air conditioner in her home for $8,000 two years ago.

When the property is valued, the valuer advises that this had added $6,000 to the overall current value of the property. However, Nuong is unable to find the receipt for the purchase of the air conditioner or the instalment cost. The company she used is no longer in business and she is unable to retrieve a copy from their records. In this case, only $5,000 worth of value can be applied. If she had managed to get hold of a receipt showing the works had been paid for, she would have been able to claim the full $6,000 suggested by the valuer.

If your home requires repairs or maintenance

In your co-ownership arrangement, you’re obliged to maintain your property to a marketable standard. The valuer may determine certain maintenance issues actually reduce the value of your property. For example, damaged security screens or missing gutters. 

The valuer decides on a maintenance amount in this case. 

This amount will be added to the Housing Authority’s share of the property only, to reflect the value of your home if those maintenance issues had been fixed. You’ll see this amount noted on your Quote Statement.

While you may choose to fix the issues yourself to help with the sale of the property, doing the repairs after the valuation has been made won’t change the figures provided in the Quote Statement.

How valuers calculate the market value of your property

Valuations are conducted by independent, qualified valuers, not by Keystart. The valuers use their expertise and resources available to determine the value of your home, including comparing your property to properties that have recently sold in nearby areas that are of a similar size and condition. 

If you disagree with the valuation, you can put this in writing to us within 10 days of receiving the Quote Statement. You’ll need to find evidence of recent sales in your area that are of a similar location, size and condition to your property to substantiate your view. The sales evidence can be obtained by a real estate agent or by providing your own research. This information is given to the valuer for consideration and the outcome provided within five to seven working days, depending on the availability of the valuer.

We understand this still may not reach an amicable resolution. If this is the case, to resolve this issue the Housing Authority can obtain a second valuation from a different valuer and take the average of the two valuations. This decision is final. Please note that while some co-owners' deeds do not allow the co-owner to dispute the valuation at all, the Housing Authority has decided to apply this policy of two valuations when there is a dispute, to all co-ownership arrangements.