Hi All,
(sorry for the doubling of post’s but i’m looking for a broad range of creative ideas- i’ve given some)
No not me , but a friend was saying he is now stuck in a bridging finance problem..
yesterday he started paying interest on both loans;
1- his ex-PPOR he has up for sale
2- His new PPORHis ex-PPOR (P1) he has moved out of now and it has been on the market at around $200k for 2 weeks, the house is about 85yrs old, sub-dividable block and he purchased it for around $120k.
His new PPOR (P2) was also around $200k and is about 20mins away.
he is a young married guy with 2 kids (6 & 2 yrs.
He thinks he has about 2 months before he has the loans called in.
Does anyone else have any other ideas ????
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorRedwing,
Only the obvious one: Drop the price on P1 to get the sale. If noone is willing to pay $200K for it then its not worth $200K. The market sets the price, not the vendor. Vendors just put up their opening bid.
Bridging finance is a killer, maybe selling at a lower price will even save him money if it gets him a quicker sale.
Cheers,
Michael.Hi Redwing,
Horrible position to be in. Why has it only been on the market for two weeks? That’s not much time to sell a prop at the moment.
Could he afford to keep the prop if it was tenanted? Perhaps he could advertise for a tenant at the same time, and see which happens first. The prop may be in an area that would sell easier with a tenant.
Maybe talk to a broker and make sure he has the best finance option available to him. (Io loan for instance)
Good luck,
Sue[biggrin]
Sue [biggrin]“Be careful not to step on the flowers when you’re reaching for the stars”
i’d get him to ring around a few real estate agents, and companies. find out if anyone needs short term accomodation.
if so, throw in some bedding, pots, plates etc.
and try and cover the loan that way.
cheers
shaunLead, Follow or get out of the bloody way
Maybe he should rent out the old PPOR to get some money in, and not be in such a rush to sell as this may lead to him dropping the price substantially just to get a quick sale.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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I have an idea or two … however I need to clear up a couple of things first … could I ask a couple of questions?
1. what would the rental be if rented out?
2. When you state the loans will be called in on in a couple of months are you meaning if the payments were not serviced?If the house did not sell…. but your friend did not have to worry about the payments (it is covered) for one loan…. would that ease the pain and allow life to go on?
Cheers
KiwiAt a guess..the rental would be around $140-150p/wk..
I’m guessing again, but i’d think he would have “serviceability” issues with both loans and with only his wage as income..
Unsure as to the structure of his loans, but i’m presuming if he didn’t have to worry about P1 loan he would be happy…
Not knowing “all” details i’m hazarding a guess..
(+ when your down-a “P” plater ran into his car the other day so they are down to 1 car for a while)
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorTwo months bridging loan is not a good option. I have recently arranged bridging loans from banks for some of my clients and these are for one year. Both the loans will be interest only for this one year period. Client has to sell the first property within one year.
<No trawling for clients permitted – by all means provide expert input but leave the ‘contact me’ messages out – Derek>
Sydneysider.
Ph.0425 374 808My post seems to have been deleted from here.
Can you PM regarding this situation if it hasn’t already been rectified.
Oh and Sydneysider, are you permitted to advertise your services here. I have noticed your post in a few threads now.
Byronent
Adelaide SAWith a limited amount of info , i suggest your friend sells the property at a rate which will easily attract buyers. if he leaves something for the next person and still makes a profit that is a win-win . he secures his position , remove the financial pressures and refocus on future deals after all family is the most important thing , he could lose everything or drop $20K? i am hoping he will still make a profit
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