Advice on situation and putting together a financial team

Hi,

Just looking to get some feedback and advice on my current financial situation. I purchased a 2 bedroom apartment in Adelaide, Keswick for $227 500 in 2008. In that time I have spent roughly 15k on a reno. I have a loan for 190k on it at the moment and I rent it out at $275 per week. Its been revalued at $245k .It is 50m2.

My current situation
Im working on the Inpex Ichtys project in Darwin. My partner and I have bought a 2 bedroom apartment at Coconut Grove which is our ppor in 2013 for $457 000 . At the moment we currently have a loan of 449 k on it. Im earning 180 k a year and have 55k in savings in an offset account.

My 1st question is what to do with the Keswick property? It has shown pretty poor growth since I have bought it which has surprised me. It is 2.5 k from the city. 2 min walk to the train station (which is the last stop before Adelaide central). It has a solid yield and I am hearing reports that Adelaide is on the recovery but I am starting to wonder whether my money would be spent better elsewhere due to the poor growth and I am starting to run out of patience with it. We intend on staying in Darwin for the life of the Inpex project which will be complete by late 2016/2017. We are looking at relocating to the Sunshine Coast after this and will decide whether to hold onto the Coconut Grove apartment or sell it in the next 18 months to 2 yrs.

Secondly I'm looking at putting a team together e.g., broker, financial adviser accountant etc. that can monitor and provide a more thorough analysis of my situation and provide ongoing advice. Any suggestions or recommendations would be greatly appreciated!

Thanks
Dangle
 
In regards to the first question - it's a bit of a crystal ball type scenario but it does look like Adelaide is starting to do well. Personally - I'd continue to hold it for a bit longer.

How is your Darwin loan set up? Is it P&I or IO?

Cheers

Jamie
 
It looks like the two properties might be x-coll?

I think you'll struggle to find any kind of professional advisor who will tell you what to do with a property you already own - the best a broker or accountant can do is run some numbers for you to decide if it fits your goals and priorities.

My thought is that if it's paying for itself and is relatively trouble free, you might as well hold it. I reckon people were probably losing patience with Sydney too in the not too distant past. :)
 
The Darwin property is being paid off principle and interest. We didn't use any equity from keswick to fund the deposit for Darwin. Just cash.
 
Hi Dangle,

Based on the numbers you've got on your loans and purchase prices, I'd be amazed if you're not cross collateralised with the 2 props.

You may not have used any equity from SA IP to buy Darwin, but I reckon you've got both properties securing the loan - the Darwin loan is very small, smaller than the maximum CBA loan could be uncrossed.

For eg, CBA have a max loan limit of 97% including LMI, which is $443k. If you have $449 owing it rings bells :)

You can check - if you look at your darwin loan docs under 'Security' it will tell which properties are being used as security.

The only reason I ask is that if you were to sell the SA property, and you are x-coll, the bank will use the proceeds to pay down your Darwin loan and you may not see much (any) cash out of the deal.
 
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