Hi, as my name suggests I am a novice Property investor and have got myself in an 'uncomfortable' situation.
In Dec 2006 I was convinced into buying an off-the-plan unit by an "agent":
- In Cairns North, 2 Bed appt (has water views) in a large complex (>90 units)
- rental g'tee 2 years @ 5.2%
- Price 429K
Finally settlement time has come and 3 banks have valued it at 400K (best possible val). So to settle I have to fork out 85K from my pocket!
Have managed to scrape this together (borrow 25K from family), and 60K from equity in my home (which is getting dangerously high because I had already taken out some large amounts to put into shares before the GFC occured). I believe the complex has already had some 'fire' sales.
So you get the picture....
Cairns North seems like a $hit place to invest today (was better 3 years ago I guess). Luckily have managed to get a tenant ready for day 1, and monthly Interest minus Rent will be < $300 which I can easily manage.
What would all the experts on this forum (and there are plenty!) suggest I do?
- Nothing (because I can still manage to service the IP loan and my home equity loan and feed myself)
- Try to sell it off in another 6 or 12 or 18 months? (because (a). it's in Cairns and (b). I am uncomfortable with such a large equity access loan drawn against my home)
- Refinance this unit in 6 or 12 months? (as a friend suggested)
Thank you in advance!
In Dec 2006 I was convinced into buying an off-the-plan unit by an "agent":
- In Cairns North, 2 Bed appt (has water views) in a large complex (>90 units)
- rental g'tee 2 years @ 5.2%
- Price 429K
Finally settlement time has come and 3 banks have valued it at 400K (best possible val). So to settle I have to fork out 85K from my pocket!
Have managed to scrape this together (borrow 25K from family), and 60K from equity in my home (which is getting dangerously high because I had already taken out some large amounts to put into shares before the GFC occured). I believe the complex has already had some 'fire' sales.
So you get the picture....
Cairns North seems like a $hit place to invest today (was better 3 years ago I guess). Luckily have managed to get a tenant ready for day 1, and monthly Interest minus Rent will be < $300 which I can easily manage.
What would all the experts on this forum (and there are plenty!) suggest I do?
- Nothing (because I can still manage to service the IP loan and my home equity loan and feed myself)
- Try to sell it off in another 6 or 12 or 18 months? (because (a). it's in Cairns and (b). I am uncomfortable with such a large equity access loan drawn against my home)
- Refinance this unit in 6 or 12 months? (as a friend suggested)
Thank you in advance!