Help, I have just completed the book and cant wait to get started. However my situation is…We have a house in Sydney valued at over $700,000 + a large mortagage and 3 expensive children and live week to week with no spare cash. We have approx $250,000 – $300,000 in exquity in our home, but if we were to sell our rent would be approx $250.00p/w less than our mortgage is now. Would we be better to sell and have money to use to start or sweat it out in the situation we are currently in?
Helpmeyou cld sell and downsize. your mortgage is big 400k plus. unless you have a total income in excess of 120k then you are really doing it hard.
why not sell the house and buy something cheaper or sell the house and rent something cheaper.
leaving more than 1000k a month to invest.sound like you are mortgaged to the hilt and the most likely type of people who will suffer when interest rates rise.
Thankyou for your replay aussierogue.
I was wondering also, if any mortgage brokers out there could tell me how we will go if we sell our home and being self employed, if any money lender will look at us. We would have a good deposit.
Thanks again[
]I agree with aussierogue
I’m also in a similar situation, Just build a big house which cost more than expected and now a morgtage of $250,000 and equity of $400,000 tired up, due to servicability. Would have to wait years before able to borrow again.
I’m going to sell and rent, then take an aggressive approach in developing some units, to build up a portfolio of cf+ps. I consider myself lucky as I have a carpentry background and have already build 2 houses for myself in the past.Generally speaking, you’re better off looking at arranging mortgages BEFORE you launch into self-employment.
That said though, a number of lenders now cater much better for the self-employed. Feel free to contact me off-forum if you’d like to explore your options.
Max Hugen [email protected]
Alpha Financial
Residential & Commercial Loans
http://www.alphafinancial.com.au
02 9560 3061H/me.
Mortgage lenders love self employed people who pay themselves as a PAYE employee.
Nice group certificates and tax returns.
Although I have a company and structured differently to a sole trader Banks and superfunds love both my and my wifes very visable earnings.
Something to keep in mind as a history will take 3 yrs to generate,not to mention the tax breaks.
John
Hi Helpme,
I recommend you spend some time with a good broker and a property savvy accountant before you do anything.
Making such drastic moves as those you are considering
is most successfully accomplished when all factors are considered.While you may be hurting financially at the moment – does the rest of the family know (and understand) the depth of hurt, or would they see the sale of the dream home so money could be poured into investments as a cost they do not want to bear.
Derek
Thanks everyone for your advice,
Derek, thankyou I have since got advice from some of the people you mentioned and am feeling a little more positive now.
The only one I havent found yet is a good account familiar with +cf. I am not happy with our previous account. CAN ANYONE RECOMMEND AN ACCOUNTANT IN SYDNEY?Thanks again for everyone input, this forum is so valuable to someone starting out. Its great to run things by others who know what your talking about.
Ta
Rhonda.Hi Helpme,
I sort of agree with a lot of the posts but playing devil’s advocate, why not tough out the current situation for a while. You have your dream home. If you wait a couple of years and reduce your mortgage perhaps you will be able to afford an investment property later. There are significant costs associated with selling and repurchasing. Don’t know exactly what it is in Sydney. But in Perth it will cost $50K plus to buy and sell a $700K property.
Talk to your lender about ways to reduce your mortgage repayments in the short term if they are too hard.Remember that your own home is still probably the best investment – no CGT.
Flame away fellow forum people
Kim
Thanks Melbear,
I will give them a call.
Regards
Rhonda.
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