Desperate situation..please help
- Thread starter Andrew2708
- Start date
He wasn't in trouble at the time of purchasing, and nobody has a crystal ball.
Oh and what freerange said.
I tend to believe most here on this forum, would take ownership and full responsibility for their actions, no? Rather than sue someone for being misinformed or that is was someone else fault?
If I was in this situation I would cut my losses and above threads have provided some great avenues.
For such reasons I have stayed away from places which are reliant on one industry only?
If you too no longer wish to rely on such places liquidate and move on...
Good Luck!
My broker is paid a commission from a bank for getting me a loan. He is not an expert on property. He is not a financial planner, not a registered valuer, doesn't take my pulse either. I can seek out different people if I need advice about what I am buying but it is NOT the job nor responsibility of my loan broker to do more than what I engage him for.
His business is to find me the loan that suits my situation.
I think you are trolling.
Hey Northener,
Sorry I think you misunderstood what I meant. A good broker understandings "strategic lending". This combines a lot of experience and expertise and involves understanding which lenders to use at certain stages of the acquisition phase, when to utilise LMI, When and how to refinance to release equity, best products and features.etc.
And yes a brokers role is to assess risk, but this is lending risk! I believe what you are referring to is risk this should be assessed by a BA.
Sorry I think you misunderstood what I meant. A good broker understandings "strategic lending". This combines a lot of experience and expertise and involves understanding which lenders to use at certain stages of the acquisition phase, when to utilise LMI, When and how to refinance to release equity, best products and features.etc.
And yes a brokers role is to assess risk, but this is lending risk! I believe what you are referring to is risk this should be assessed by a BA.
OK, back to my original to Andrew. I would get copies of all the relevant documents, read and understand them as best he can, formulate any questions he has, Then see a lawyer, he may have some protections under NCCP law or a lawyer may uncover fraud that Andrew isn't aware of. I don't see that as unreasonable advice. If I have come across as attacking Mortgage brokers then I apologize, I believe most would act with honesty and integrity, but as with all industries, a minority may not, and some may be used as "firewalls" by banks to cloud the bank's own complicity. Also in this case there may be no broker involved at all
Hi, all this talk of lawyers etc doesn't help.
Breaking down the bare bones, the Blackwater investment returns about 13K p.a. that's 2.5% yield. That's 2 steps down from fixed deposit. It's not the end of the world. It's a mistake, that's all.
The Mackay investment, ditto.
You might find that Mackay may sell easier than Blackwater. So in asking if selling Mackay is a viable option, OP already has an inkling of what to do.
So, using 70-80K of PPOR equity, he gets out of 12K -ve gearing p.a. This if put back into the PPOR loan, + increased repayment means that he can cancel one of the mistakes in 3-5 years.
Andrew, this is a certainty. Would the Mackay property go back to the giddy heights? No one has the answer.
We all understand your pain but only you can make a decision.
I've had 3 properties on the market for more than a year. Just last week, an offer was received and accepted.
Fortunately, I had other freehold property but I had to take a very expensive private loan - again!!
I wish you well and hope that your investment journey takes a better turn soon.
KY
Breaking down the bare bones, the Blackwater investment returns about 13K p.a. that's 2.5% yield. That's 2 steps down from fixed deposit. It's not the end of the world. It's a mistake, that's all.
The Mackay investment, ditto.
You might find that Mackay may sell easier than Blackwater. So in asking if selling Mackay is a viable option, OP already has an inkling of what to do.
So, using 70-80K of PPOR equity, he gets out of 12K -ve gearing p.a. This if put back into the PPOR loan, + increased repayment means that he can cancel one of the mistakes in 3-5 years.
Andrew, this is a certainty. Would the Mackay property go back to the giddy heights? No one has the answer.
We all understand your pain but only you can make a decision.
I've had 3 properties on the market for more than a year. Just last week, an offer was received and accepted.
Fortunately, I had other freehold property but I had to take a very expensive private loan - again!!
I wish you well and hope that your investment journey takes a better turn soon.
KY
Same. I select the property I am going to buy and then instruct my broker to get a good deal on finance. My broker is the finance expert, not the property expert. That said, in my latest re-fi he had a look at my additional borrowing capacity and suggested I consider building a townhouse on one of my sites. Again, I ran the feso and then instructed him to find a deal for me. It up to me to decide if I wanted to build or not, not him. He just gave me an idea to consider and make my own decision.
The take or pay contracts the rail operators have mean some marginal mines are operating because they lose less money operating than they do if they closed, because if they closed they still have to pay for freight they are not using.
As these contracts expire over the next several years unless coal prices increase more mine jobs may be at risk.
Maybe it might be lower risk to sell Blackwater and hope that Mackay increases in value over the next several years.
As these contracts expire over the next several years unless coal prices increase more mine jobs may be at risk.
Maybe it might be lower risk to sell Blackwater and hope that Mackay increases in value over the next several years.
Blackwater does not look good when for $100K, you can get yourself a 3 bedder with 700sqm freehold land:
http://www.realestate.com.au/property-house-qld-blackwater-113009011
Unless Andrew bought those properties on some kind of seminars which also include mortgage brokers/lawyers etc (ie conflict of interest), it would be hard to sue them given those documents signed would have all those disclaimers etc.
http://www.realestate.com.au/property-house-qld-blackwater-113009011
Unless Andrew bought those properties on some kind of seminars which also include mortgage brokers/lawyers etc (ie conflict of interest), it would be hard to sue them given those documents signed would have all those disclaimers etc.
Hey Northener,
I do not think you meant to attack mortgage brokers, I was just answering to help you get clarity on what it is they actually do and there responsibility in a property transaction.
If a mortgage broker had put the client into an unsuitable loan that they were unable to afford then absolutely under NCCP there would be grounds to pursue this. The fact is though that the client could and still does have capacity to service this loan.
I do not think you meant to attack mortgage brokers, I was just answering to help you get clarity on what it is they actually do and there responsibility in a property transaction.
If a mortgage broker had put the client into an unsuitable loan that they were unable to afford then absolutely under NCCP there would be grounds to pursue this. The fact is though that the client could and still does have capacity to service this loan.
Sounds like my hometown called Shunde, which like Aussie mining times was a one trick pony that relied on manufacturing (which is now too expensive in Guangdong) and building ghost towns. That's what I kept explaining to people in China, money flows back to my second home Hongkers when the party stops.
If you can walk away and get capital back, do it even at a loss. Because the missed opportunities from not having capital far outweighs hanging onto these properties for 10 years hoping for another mining boom.
If you can walk away and get capital back, do it even at a loss. Because the missed opportunities from not having capital far outweighs hanging onto these properties for 10 years hoping for another mining boom.
I would have thought this would be OUTSIDE of the broker's area of expertise... they are giving advise on the LOAN. Not on the risks of investing in real estate and especially not in analysis of deals.
I think you mean 'Land Tax', as Stamp duty will apply in almost all purchases.
And perhaps the properties were purchased in another entity away from personal names, where the threshold is $350,000, so quite plausible for the OP to be paying Land Tax.
pinkboy
My broker is also a fairly active property investor so I've had the best of both worlds. I think that it's the same with all those who are in your support structure. Your accountant ideally should have some experience in property investing, same goes for your solicitor and financial planner.
Have you considered a granny flat, Ok the returns are not that attractive. A $60,000 - $80,000 granny flat may be able to add $200 per week or more. Yes the rental yields have dropped though how long does it take to tenant these houses.
Keep Baulkham Hills as the growth opportunity is still very much a reality in Baulkham Hills, I personally have bought a second property in Baulkham Hills in the last 3 months and have already seen some growth in property value. As for locating a tenant that was a harder task with the property being on the market for 6 weeks before an acceptable tenant was found, I have had more luck up the coast with the average time on the marketing being less than a week.
As for extending interest only, most banks will allow a loan to run 10 years without the need for rewriting the loan. That should ease some fears.
I hope my two cents have helped
M
Keep Baulkham Hills as the growth opportunity is still very much a reality in Baulkham Hills, I personally have bought a second property in Baulkham Hills in the last 3 months and have already seen some growth in property value. As for locating a tenant that was a harder task with the property being on the market for 6 weeks before an acceptable tenant was found, I have had more luck up the coast with the average time on the marketing being less than a week.
As for extending interest only, most banks will allow a loan to run 10 years without the need for rewriting the loan. That should ease some fears.
I hope my two cents have helped
M
