Bought IP but Lost job.............bad news

I

ipinvestor

Last Saturday me and wife attended our first auction. We never been to auctions before. We saw 4-5 RE Agents and an Auctioneer and @ 8-10 interested parties. We found out that it was a bank mortgage sale auction. 3X1 with BIR in two big bedrooms, solar water heater, reticulation bore on a 800m2 block, 100 m from a primary school and 50m from bus stop. The house needs some painting and good cleaning.
We thought, if we can buy below $330K, it can be a good buy. Auction started with $220K, there were 4 bidders and stopped at $296K. We were the highest bidder. Auctioneer declared that if auction does not reach $300K, they will put back in the market as reserve did not meet. Everybody left except us. We accepted bank's offer and signed contract for $300K. paid 10% deposit. We were very happy as we bought our 6th IP.
Yesterday wife rang me at 8am. She starts at 7am and usually call me at 12.15pm. I asked her, what is wrong? She said "Company is closing our department and they made us redundant." Big shock for her........for me too. I went home early to support her. She was so upset that she could not talk for a while. She woke up early as usual this morning, But she does not have job anymore. I told her that she does not need to worry, everything will be fine etc etc But.........
Thanks GOD, we have good savings and I work for mining Construction company FIFO.
Did anybody has this type of situation before? How did you deal with it? Please respond, your experience will help us. Thanks.
 
Sorry to hear.

I hope she got a reasonable payout.

I know people who used to work for Ansett - just getting the first few hundred $ of their owed money now - decade + after the event.... :(

My wife's been in a similar position - I now call her the shutdown expert - because everywhere she works seems to close down (imagine how that looks on your resume at a job interview :D )

The Y-man
 
Hiya

Its not an uncommon position.

The immediate thing is obviously to look to replace the work and number 2 to find funding for the purchase to protect the 30 k deposit.

Sounds like u have a decent cash buffer

ta
rolf
 
Sounds to me like there is a lot of attention on the redundancy at the moment, but this is quite normal (Having worked a decade for an organisation that made redundancies a sport).
Some food for thought ...

I am yet to meet someone who says that there life didn't change for the better following a redundancy. In most cases, it has been the trigger to pursue other goals, interests, career path etc.

6 IP's? Wow. Nice work. I'd rather be the person saying that I'm redundant with 6 IP's that the person who says they would love to invest in property, but worried they might lose their job. If you're going to be made redundant, it's going to happen, regardless of your investment strategy.

Good on both of you for being in the position you are in and best of luck moving forward with this new phase in your life. In years to come, your wife will be telling people all about how the wonderful stuff that has happened in the past few years wouldn't have happened if she hadn't been pushed into looing outside the square.

Just my 2 cents worth ...
 
The Y-man said:
Sorry to hear.

I hope she got a reasonable payout.

I know people who used to work for Ansett - just getting the first few hundred $ of their owed money now - decade + after the event.... :(
Click to expand...


Are you sure it is the first money? I heard an ex-Ansett employee interviewed on the radio a few weeks ago and she said employees had finally received the LAST money for all of their entitlements.
Marg
 
marg4000 said:
Are you sure it is the first money? I heard an ex-Ansett employee interviewed on the radio a few weeks ago and she said employees had finally received the LAST money for all of their entitlements.
Marg
Click to expand...

She worked for 4 years, she received all her entitlements. It is Pacific Brands.
Thanks.
 
marg4000 said:
Are you sure it is the first money? I heard an ex-Ansett employee interviewed on the radio a few weeks ago and she said employees had finally received the LAST money for all of their entitlements.
Marg
Click to expand...

Hmmm... maybe the few hundred bucks was the first and last she is going to see.... :eek:

The Y-man
 
Not an ideal situation but things could be a lot worse.

Is the finance going to be a problem for this new purchase is the main question,can you afford all the repayments for the next 6 months?

This could be a good opportunity for your wife to learn how to renovate and treat this as a job until another one arrives.

When I do a renovation I treat it as a job and pretend I am earning X amount as I add value to the property.,it is money in the bank even if you don't see it immediately.

I would renovate this new property wisely,(Conserving cash) and when finished I would place it on the market for a month or so and see if it sells.

Only you will know what you need to do,you sound like you have your head screwed on right anyway. ;)

.
 
Pa1nter said:
Not an ideal situation but things could be a lot worse.

Is the finance going to be a problem for this new purchase is the main question,can you afford all the repayments for the next 6 months?

This could be a good opportunity for your wife to learn how to renovate and treat this as a job until another one arrives.

When I do a renovation I treat it as a job and pretend I am earning X amount as I add value to the property.,it is money in the bank even if you don't see it immediately.

I would renovate this new property wisely,(Conserving cash) and when finished I would place it on the market for a month or so and see if it sells.

Only you will know what you need to do,you sound like you have your head screwed on right anyway. ;)

.
Click to expand...

Thank you very much for your advice. We never thought that renovation of new purchase can be her job. We have renovated 4-5 houses so she knows what to do with new house.
Repayment for properties is not a problem. I am on good salary and we have found a tenant for new purchase as well.
Yesterday, we received conditional loan approval. We will get full approval after valuation. Fingers are crossed. Wish me Good Luck. We really need it.
Thanks everyone for your response. Regards;
 
Hi, My husband has been retrenched twice, and both times it has been a good thing. He got better jobs and higher salary and ended up finishing his masters degree.

It's not a bad thing and it will probably end up being a good thing. Tell her she deserves a break, go visit someone she hasn't been able to see for a long time or do something just for herself.

Something I thought of doing if I was made redundant is to study as a property manager and manage our own properties. That way it will save us money in the long term by not having to pay a REA. With 6 properties she could end up being quite busy!

Good luck, but I know you will be ok.
 
jclegg said:
Good luck, but I know you will be ok.
Click to expand...

I dont want to be a downer but..

My uncle lost his job, retrenched 15 years ago or so as some sort of specialised reinsurer. He hasn't worked since. It is clear to see now he did a couple of things very wrong here, 1. he refused to accept a lower position on the interim, 2. did not re-train.

It doesn't take long for a year or two to go past then employers want to know why you haven't worked for so long.

I know this is a bit different to your situation.
 
ipinvestor said:
1. Positively geared resi property in Perth? Very hard to find.
2. 500K-1 mil a year? I am dreaming.

But thanks.
You did not wish me "Good Luck"
Click to expand...

i thought everyone in perth was doing it pretty good like chefs earning 500K on a oil rig.

but yeah good luck and i think you will be fine mate.
 
Being there before...

Hi,

Back in May 2009, on the day before we were going to sign the contract for IP1, I got the axe with 3 months notice. We discussed our options, considered that we took 7 months to find IP1, and went ahead anyway. I started applying for other work within a few days, with my then manager being my reference.

Two weeks after leaving that employment, I found a casual contract role and after a few weeks, got extended to a 14 months role with a slight pay increase from my last job.

Overall, it worked out well because I kept on building my career, enjoying it along the way. Have moved on to bigger and better roles since.

As long as the cash buffer is there and you and the wife got a plan to move forward with, things should be fine.

Regards,

Daniel Lee
 
You can think of it as an opportunity.

With every crisis on life, comes an opportunity to change the way you do things, reassess your financial situation, adjust buffers, try new ventures etc.
 
daniellee said:
Hi,

Back in May 2009, on the day before we were going to sign the contract for IP1, I got the axe with 3 months notice. We discussed our options, considered that we took 7 months to find IP1, and went ahead anyway. I started applying for other work within a few days, with my then manager being my reference.

Two weeks after leaving that employment, I found a casual contract role and after a few weeks, got extended to a 14 months role with a slight pay increase from my last job.

Overall, it worked out well because I kept on building my career, enjoying it along the way. Have moved on to bigger and better roles since.

As long as the cash buffer is there and you and the wife got a plan to move forward with, things should be fine.

Regards,

Daniel Lee
Click to expand...

Thanks Daniel and all of you. We both are reading your responses and feel like we are with a big invisible family. Since we started IP journey, you guys have provided support, guidance and motivation on each step of our journey.
My wife is motivated now, and she is stating her SOLO reno project for our new purchase. (I will be away........... FIFO)
Regards;
 
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