Hi all, been so busy I haven’t been able to get
onto pi.com for a while. I have a serious ques
and I hope you all maybe able to help me out.
What is the possiblity of someone buying their
1st ever house in the SYD area, if they have
$55k-$60k in credit card and personal loan Debt?
and don’t have much of a savings, and are in
their late 40’s to Mid 50’s? Combined income is
bout $105k before tax. Any lenders you could
recommend who will help them out? if not able
to get a home loan, any hints on how someone
like Liberty financial or similar company may help
to reduce the Debt by taking it on and the couple
paying to Liberty or equivilant? Really appreciate
it. I’m only 22 so it not for me. I really want
to help them as they are close family members.Hi,
This is not going to be an easy one, but will involve some confidential discussion. Contact me on email [email protected].
Cheers!!!
Gary Young
Home Loan Connexion
Mobile 0407 64 66 32
Fax +61 7 4636 4841
email [email protected]HLGuy, thanks for the reply. Yeah i myself had a
feeling this one would be a tougie but not that
impossible to pull it off for the better.Hi Sach,
What about buying under wrap? this way they can buy their first house and another person can also get benefited I think looking at their income they can afford payment but CC and PL is a problem.
Cheers
AmitSorry to be a negative nancy but some tough love
is called for here…Before your friends go into
any more debt (even good debt) they need to
reevaluate their attitudes towards money and saving.I realise that they are paying rent but yields
in Sydney are so low that they will have to fork
out significantly more to get into their own home.I feel a mortgagee in possession auction coming in
the future…I won’t say they can’t do it, just
that there are other steps which should be
accomplished first.andy
ajawns, “mortgagee in possession auction”? I am not
sure what you mean. Thanks a tonne for the advice it is
noted and will be passed on. yeah the debt has been
accumulated over the last 7 to 8 years. You know,
buying on credit and getting lazy with repayments,
buying a car, going on O/S trip with a personal loan
not own savings etc. I guess having a good pen and paper
budget would have been a good idea for them in 1995 or
so. There is a simply saying “Spend less than
what you Earn & if you get Debt make sure it is
a Good Debt that puts money in your pocket”hi sach
I think ajwans means by “I feel a mortgagee in possession auction coming in
the future…”if your friends get into their own home they might default and then the lender will sell it to recoup their debt”….kinda pessimistic….
i would recommend them read ‘money secrets of the rich’ by john Burley.
As far as buying in Sydney goes, I did the numbers on buying the house we live in. Firstly not only would we need over 100K for the deposit. Secondly interest only would be $1200 per week, more if interest rates rise or a fixed rate, but renting the house is only $400 pw……
that’s why I’m still renting here but buying elsewhere.
Thanks, Mini. Yes I will pass on all this golden
info to them. Now I got what he meant, due to their
track record the house may go under (if missed payments).Mx Borrowing with Liberty is $270000, this is assuming they are only a couple with no children and the $60k monthly repayments are only 3%. Still need deposit, generally 10%.
Best to get the debts down
Great to see that there are so many alternative ways
to curb and banish it. I guess you gotta know the right
people who are willing to help you out. Thanks a heaps.Has anyone out there dealt with a specific debt
consolidation agency (for credit card debt only)
that is just being paid off as a minimum payment
as shown on the monthly statement. Appreciate the
feedback.My question is:
If these people are in their late 40’s, earning $105k, why is it they dont own a home, and have such high debt? Seems they cant get by as it is, adding more debt to the mix will only make it worse.
Banks wont touch them because they are high risk, and rightly so. The best way to help these people is to deny them any more debt. If they can stop spending money like they are and start paying off debt, then they deserve help. Everyone pays rent in one form or another. Its NOT dead money. They are not going to miss out on any capital gains, thats for sure, in fact NOT buying a house might well save them 100k.The best way to help these people is to give them a good slap around the ears. Tell em to read a book or 2 on BUDGETING.
Crashy is harsh, but he speaks the truth. [
]yeah Crashy, well made point there. At least now
they have woken up after a couple of verbal wakeup
calls from the people who are close to them.
the reason the debt got so big is that, from what
i understand and know. They always didnt have a
combined salary of $105k but they did want to act
and show as if they did, hence used credit cards
and personal loans to buy things like cars, go
on O/S and Interstate trips (not that many though)
over the 7 to 8 years. Children were going to High
school and uni. and the thing is one of their kids
also has a HECS debt and Centrelink loan debt to
payback – and unfortunatly the person didnt even
finish the degree (was forced into degree by parents
to show off to others I am assuming). Sad to see
but I am sure they will recover if it is meant to be.Be very careful of debt consolidation companies.
What they will do is place the ppeople in a Part 9 Agreement which is a form of bankruptcy. A lot of the companies don’t inform the people of this, they just say it is not bankruptcy, but you get to pay say $100 wk with no interest.
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