All Topics / Help Needed! / HELP I have visions of going bankrupt.

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  • Profile photo of andrew westandrew west
    Join Date: 2004
    Post Count: 7

    Some advice please.

    A few years ago I bought  an investment property in the coal mining town of Dysart located central Queensland.  It had grate cash flow. The town was growing with both government infrastructure and private construction.  Talk of a new underground mining was in part backed up by a small amount of due diligence.  

    Three years on and I have hit a major hurdle.  The down turn in the coal industry and a mine closure has resulted in hundreds of workers leaving the town.  According to my property manger the major company  i lease the house to is handing back private leases all over town and moving their workers into company owned houses.  Of the sales agents I have spoken to not one has sold a house since May 2012.  currently major oversupply of houses listed for sale. 

    But it gets worse.  I had the ability to maintain the loan for about another year without rent coming in (there is talk of the closed mine  re opening in some capacity in the future).  However my wife has decided to leave me.  As a result I now have less money to maintain the loan (our finances will be split)  and little to no chance of selling the house.   

    Any ideas to help would be welcome


    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,190

    Start planning ahead. Do you have other assets?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide)

    Profile photo of SAHSAH
    Join Date: 2012
    Post Count: 28


    I am sorry to hear of your troubles. It must be very hard to be dealing with both financial problems and a relationship breakdown at the same time.

    Can you lease the property for a reduced rent to maintain some sort of cashflow whilst you are trying to sell the home?

    Profile photo of Josh AthertonJosh Atherton
    Join Date: 2011
    Post Count: 269

    Hi Andrew, 

    if you bought the house a number of years ago, and assuming you haven't accessed any equity that was there, I would look at renting it for break even point which shouldn't be much over $600 per week or so? That's if you can achieve that really. Its the hard part about a small town like Dysart, when it stops, it just stops!

    Depending on the lot, you may have room for subdividing in half, then you can sell you house for much cheaper and sell the land and probably get out much easier. It is a long shot however i thought i would pose it.

    Best of luck!


    Profile photo of DerekDerek
    Join Date: 2004
    Post Count: 3,544

    If you have plenty of equity – why not a fire sale?

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