Bought badly & can't get out - Mandurah, WA

[glowkat]

Sorry ...Buying vacant blocks of land with no income and "planning" for them to appreciate is not investment ...it's speculation. There's a difference.

Just to clarify, I didn't say I had no income at all, I said I had no income for the purpose of my personal tax return. My husband has a regular income and I usually make my money from my property transactions, and various other business ventures.

I have also read Jan's books, everyone elses books, had a great mentor, and completed a bunch of successful property transactions. Everyone has their own investing style and I'm certain I'm not the first investor to have made a bad judgment call.

Please let me state that I'm not seeking more negative feedback on the choices I've made. I already get that loud and clear. The point of my post was to see if anyone could offer any suggestions for helping me find a solution.

Sunshine & Feihong - Thank you very much for the words of encouragement, trust me when I say that they are VERY MUCH appreciated right now.

Kat

 

[steveadl]

Kat, not sure if I'm following the story correctly, but a few posts back you mentioned you had another house in the area that has about $200-300k equity in it (depending on sale price). Do I understand correctly that you have 4 properties down there - 2 houses (the one with less quity you're trying to sell), and 2 blocks of land?

Could'nt you sell the house that has more equity instead, which then frees up your monthly commitments somewhat and give you some breathing space to keep the other ones for an extra year or so and hope for a price recovery or at least not be in such a desperate situation?

 

[super_sam]

Or refinance the house with equity to say 90% and use those funds to service the loans that are causing you problems until the market picks up and you can sell the vacant blocks

 

[glowkat]

Yes, the 4th property with the most equity in it is indeed a good emergency back up option, although it is tenanted at the moment, and would still take time to sell, as per the one already on the market.

Fortunately since dropping the price, my agent is giving the house a good run this month as a featured property on realestate.com, so hopefully that attracts some interest. So now the ideal situation would be for that to sell quickly and give us a bit of cash back in our pocket to cover the other two for a while, and one less interest bill per month (which is over $2,000).

Thanks again for the suggestions... they've been great to get us (my husband and I) thinking in solution mode rather than focusing on the problem. Much appreciated.

Fingers crossed now for a quick sale!

 

[lizzie]

Or refinance the house with equity to say 90% and use those funds to service the loans that are causing you problems until the market picks up and you can sell the vacant blocks

or use the equity as a construction deposit and build on one of the sections?