Hello,
I need advice please. I have an investment house that was a house land package built in 2008. Since then, there have been several increases in the interest rate and on my $337k interest only mortgage, the tennant pays $1400 per month and I now have to find $800 per month, to cover mortgage, council reates ins etc and its crippling me as I have rent to pay also. I was married at the time of purchase.
The house has been on the market now for the past 8 months and has been reduced from $350k to $320. The latest bad news is that since the floods in January the flood markers have changed which will affect someone getting a mortgage apparently with the big 4 banks! The house never flooded or had water near it.
I have $180k currently in savings and will be transferring $70k from the UK in the near future. I just dont know what to do, I'm really worried about this, already the house is advertised for less than the build cost. My plans are to buy a PPOR in the next year but I just dont know what to do ad would be so grateful if I could get some advice please on my best course of action.
Thank you in advance
Hi Debbiemc
Would you be better off moving into the house yourself ?
Glad your house didn't get flooded, but then are you saying that the flood markers are placed where they adversely affect your property's sale prospects?
If you decide to continue to sell your property, you may consider using "staging" to sell the property ?
My 2c worth.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
1. get a depreciation report if you havent already got one,
2. see an accountant and get a tax variation done asap, hence paying less tax each week which will improve your cash flow, e.x if you were to get $10,000 back at the end of the year, you might only get $1000 back.The options above are good, however have you considered that maybe you could spend 10,000 or so REALLY investing in renovating it? You dont need to change any of the house’s structure, but repainting the house, maybe change the shower and water basin, or put in new shelving and modernize your kitchen and such, can REALLY add value to your home, and you may not even have to lower the price as much, so in the end you make your money back.
my 2c, cheersCameron Thompson wrote:The options above are good, however have you considered that maybe you could spend 10,000 or so REALLY investing in renovating it? You dont need to change any of the house’s structure, but repainting the house, maybe change the shower and water basin, or put in new shelving and modernize your kitchen and such, can REALLY add value to your home, and you may not even have to lower the price as much, so in the end you make your money back.
my 2c, cheersMight not be any value in this method considering it’s a near new product (built 2008). I’d be doing exactly what Coalstar is proposing (and have done) ie. get a depreciation report done by a QS and then get your accountant to implement a tax variation.
ah, its a new property. well all the best, cheers
Why can't you use some of that $180k – $250k to pay down the mortgage? Does your IO loan not allow it?
Hi Debbie, Have you considered selling the property as a rent to own & taking it off the market? I only ask as this may be a way to get the price you require for the home.
By allowing someone in the home time to get themselves sorted to go to the bank may give you a wider target audience for selling your home. Further to this depending on how long you allow them in the home to purchase as a rent to own you can ask them to pay the council rates, insurance, water rates etc pro rata from the date of occupation.
As you have been affected by the floods (whilst not personally) giving some time to sell from this event may make it easier for someone to purchase in 1-2years & you will still have money going onto the loan by your tenant/buyer.
There are plenty of lawyers who specialise in this form of vendor finance law who can assist you with advice/drawing up contracts or alternatively there are people throughout Australia who can assist you with selling your home in this manner.
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