Forums / Property Investing / Help Needed! / Starting again at 49

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  • Profile photo of simondemasimondema
    Participant
    @simondema
    Join Date: 2004
    Post Count: 43

    Hi all

     Although I have not yet hit the big 50, it is getting pretty close.

    I am still in the throes of a bitter divorce, after nearly 2 years, I am waiting for my share of what I contributed during the 10 year relationship. Unfortunately a lot of money has been spent on lawyers, and the case will probably end up in Court next year.

    Hopefully, that will be the end of that and I can start my life again. During the marriage, we bought investment properties, some very good and some not so good. So far we have managed to sell 2 houses and there is still a block of land to sell in WA. 

    I am currently renting in Sydney, and of course I would like to buy my first ever property on my own that will be my PPOR. I had my heart set on a house, but as you can imagine in Sydney, most of what I am hoping to get from the settlement will go. Is it better to buy something smaller, like a unit in Sydney and then maybe try to buy a house outside of Sydney where it's more affordable and rent it out? I guess I am also looking at my future and would like to get back into the investment market. The past 2 years have crippled me financially what with lawyers and valuers and accountants. 

    I would value any comments from this excellent forum

    Thanks

    Simon

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    G'Day Simon,

    Without having all the pieces of the puzzle its hard to comment specifically as a lot is dependent on the deposit that will be available after the settlement, your borrowing capacity and the need to be close to the city for work purposes. 

    In short, one option (servicing permitting) could be to continue renting and then purchasing a property out west as your base and something you can look at quickly building equity on. The other option you may want to consider is living in the property but renting out a room or too or help with cashflow and in turn build a bit of equity to then upgrade. 

    A lot of this is dependent on servicing capacity and of course the deposit amount. Also could you live in the property and also rent out some rooms? What do the numbers look if you rented separately to if you lived in the property and rented a few rooms out?

    BTW – a client just 'started over' again and he was 64 but he is very upbeat. Easy said than done but thinking positively will certainly help you.

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
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    Profile photo of simondemasimondema
    Participant
    @simondema
    Join Date: 2004
    Post Count: 43

    Hi Shahin

    Thank you for your reply.

    You are right when you say that it all depends on the amount I will get.

    This is my first time I have ever rented, and frankly I hate the fact I am not putting that money towards my mortgage. Having said that, I understand the premise behind your comment and maybe that is an option I need to look at. As I am a flight attendant, the prospect of having to rent a room out or share is not something I would entertain, as my days and hours are all over the place, and frankly I like my privacy when I get home.

    The idea of buying out west is a very sound one, as I too believe there is more value for money out there. I am currently living on the Northern Beaches in Sydney, and although beautiful, my work is at the airport, and although not a 9 to 5 job, the travelling time is also a factor to consider, especially when you do a 14 hr sector.

    Probably the unit idea in Sydney and the house in another area is what I will probably seriously consider. Talking to my broker, based on a $400k settlement, I could probably borrow another $370k or thereabouts.

    Thanks

    Simon

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    Ok so renting out a unit may seem like a suitable option but that is completely dependent on person circumstances noted above. The amount you can borrow isn't linked to your deposit per se. I think he/she has based the $370 on your income. I wonder how this will change based on whether you rent and rent the property you are purchasing out. You should be able to get some negative gearing added. 

    TheFinanceShop | Elite Property Finance
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    Profile photo of Andrew_AAndrew_A
    Participant
    @andrew_a
    Join Date: 2003
    Post Count: 392

    Perhaps sorting out the settlement mess first of all and then taking a break before choosing on the next direction could be an option, making a decision from a calm state of mind is important. Just a thought. Your situation is unfortunately quite common these days Simon, I'm regularly talking with people who are looking to build again after a separation. Also mixing the lifestyle (northern beaches) with the investment (possibly not northern beaches!) decisions is another area to watch out for, have a different hat for each consideration!

    Profile photo of christianbchristianb
    Participant
    @christianb
    Join Date: 2009
    Post Count: 386

    Simon,

    I hope it all works out – for both of you.

    You may well be starting again, but you have a great advantage.

    • What you have learnt along the way. If you have done it once….
    • Time to think about what happens next, and to do your research and build a plan

    Profile photo of mattstamattsta
    Participant
    @mattsta
    Join Date: 2011
    Post Count: 604

    I think you first need to wait to get your settlement and then depending on how much you get decide where to invest and in what kind of property. About your age, I do not think that it is ever too late to start property investing, especially if you have a good plan:-)

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Totally agree with Andrew here.

    I would focus on one thing at a time.

    Once you've sorted out the settlement – revaluate where you're at, what resources are available and what you want to achieve.

    You can still make a start at 50 – I have plenty of clients purchasing their first IP in the over 50 bracket.

    Cheers

    Jamie 

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

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

    Hi SImon,

    One step at a time. Get the divorce settled – take a breath & then revisit your question.

    While you are 'waiting' re-evaluate your existing portfolio. By your admission some worked and some didn't and it would be to your advantage moving forward from here if you were able to identify why some worked and others didn't.

    At 49/50 you may need to look at slightly different strategies to those you employed before. If this is the case then consider spending some time getting your head around the 'new' stuff.

    All the best.

    Profile photo of simondemasimondema
    Participant
    @simondema
    Join Date: 2004
    Post Count: 43

    Hi all

    Thanks for all your wonderful comments.

    All my life I have tended to make snap decisions without really realising the full consequences of my actions. Sometimes it has worked and sometimes it. Hasn't. This time, I can't afford to be as frivolous with my money again. Therefore, a plan is needed. As the settlement will most probably end up in Court next April, the  road is still still long.

    I just have to  learn now for once in my life to have a plan and a strategy. That will be a first!

    I certainly want to purchase investment properties that will bring in an income, as I will certainly not be relying on a pension when I retire! I guess as the other posts have said, once the money is finalised I will have a better idea of what I can and can't do.

    Simon

    Profile photo of Gazza21Gazza21
    Participant
    @gazza21
    Join Date: 2012
    Post Count: 54

    Can’t you work any harder to reach an agreement out of court? Even if you have to concede a couple of things you are determined to win you might still end up better off than paying all the solicitors and court costs. You could even lose those things in court anyway.

    Will be great negotiation practice for you and will surely be the most financially beneficial thing you can do for yourself today?

    Even if you’re ex is a complete A-hole act nice for the sake of saving money and then move on?

    Profile photo of simondemasimondema
    Participant
    @simondema
    Join Date: 2004
    Post Count: 43

    Hi Gazza

    I agree, although all that has been tried before, including mediation. It's all about revenge and not wanting to even give me my share. Lots of negotiations and possible outcomes, but unfortunately blind hate has has taken over both her and her family. For her it's all about money. Sad but true. 

    Hopefully she will finally listen to her solicitor and come to some agreement with me.

    Simon

    Profile photo of Gazza21Gazza21
    Participant
    @gazza21
    Join Date: 2012
    Post Count: 54

    Have you tried grovelling ;-)

    What a shame, fingers crossed you get all you’re entitled to

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