Hello
I suppose its not nice to have to do this however if anyone can help me they are likely to be on this forum.
I lost my job in August last year, and thought it was a great time to start renovating a house that I had been renting out.
I feel I did a pretty good job on the renovation and have just recently finished.
To cut a long story short I have run out of money, and when you have 600k of loans it stops being a laughing matter.
I have managed to keep my head above water for the last couple of months, and am frantically looking for employment now the renovation has finished, and have several strong possibilities on that front, however anyone whos been a job seeker knows it can be a waiting game.
Once I have a job my problems will be sorted, however this is the state of affairs:
Assets
House 1 valued at 185k
house 2 valued at 280k
house 3 valued at 460k Total assets = 925K
rents total $2250 per month
Liabilities
mortgage 520k (over all 3 properties) $2700 per month
credit card 1 10K $@300 per month
credit card 2 8k $@260 per month
realestate agent 8k ingnoring the letters
tradesman 4k has been very understanding
miscilaneous loan 26k from my DAD
Total liabilities = 576K
total min repayments @3,000 per month
of course council rates etc don't stop arriving either so that rental income is more like $1500 per month (varying of course)
The dumb thing about this is that I cant think of anyway to avoid the approaching crunch, yet if I can postpone it, in 3 months time it wont be a problem.
I tried selling house 3 and the highest offer I got was 360k which is almost 100K less than the bank valuation (done before the renovation), and only 100K more than I paid for it 4 years ago, this house is 2.5 acres(steep) 15 mins to Adelaide. I am currently trying to sell house 1, yet the highest offer Ive had is 160k, which I think is just someone fishing for bargains. The problem I have is that house is tenanted, and the house which has alot of potential is a mess and the tenants leave the place filthy and intimidate potential buyers even after I gave them 2 weeks rent free. They will leave only if I give them 3K (they have 6 months to run on the lease).
I never actually wanted to sell any of my houses, because the strategy has been buy and hold.
I can see the last 10 years of work that I have put into these houses dissolving, as well as the next 7 years being put on hold because of a poor credit history, so I hope someone will be able to say "well as a matter of fact I have an answer to all your problems" almost makes me wish I spent all my money on alchohol, good times and women of low moral fibre instead of worrying about tenants, rent and maintenance, because it looks like its going to have the same results.
Regards Adam
I suppose its not nice to have to do this however if anyone can help me they are likely to be on this forum.
I lost my job in August last year, and thought it was a great time to start renovating a house that I had been renting out.
I feel I did a pretty good job on the renovation and have just recently finished.
To cut a long story short I have run out of money, and when you have 600k of loans it stops being a laughing matter.
I have managed to keep my head above water for the last couple of months, and am frantically looking for employment now the renovation has finished, and have several strong possibilities on that front, however anyone whos been a job seeker knows it can be a waiting game.
Once I have a job my problems will be sorted, however this is the state of affairs:
Assets
House 1 valued at 185k
house 2 valued at 280k
house 3 valued at 460k Total assets = 925K
rents total $2250 per month
Liabilities
mortgage 520k (over all 3 properties) $2700 per month
credit card 1 10K $@300 per month
credit card 2 8k $@260 per month
realestate agent 8k ingnoring the letters
tradesman 4k has been very understanding
miscilaneous loan 26k from my DAD
Total liabilities = 576K
total min repayments @3,000 per month
of course council rates etc don't stop arriving either so that rental income is more like $1500 per month (varying of course)
The dumb thing about this is that I cant think of anyway to avoid the approaching crunch, yet if I can postpone it, in 3 months time it wont be a problem.
I tried selling house 3 and the highest offer I got was 360k which is almost 100K less than the bank valuation (done before the renovation), and only 100K more than I paid for it 4 years ago, this house is 2.5 acres(steep) 15 mins to Adelaide. I am currently trying to sell house 1, yet the highest offer Ive had is 160k, which I think is just someone fishing for bargains. The problem I have is that house is tenanted, and the house which has alot of potential is a mess and the tenants leave the place filthy and intimidate potential buyers even after I gave them 2 weeks rent free. They will leave only if I give them 3K (they have 6 months to run on the lease).
I never actually wanted to sell any of my houses, because the strategy has been buy and hold.
I can see the last 10 years of work that I have put into these houses dissolving, as well as the next 7 years being put on hold because of a poor credit history, so I hope someone will be able to say "well as a matter of fact I have an answer to all your problems" almost makes me wish I spent all my money on alchohol, good times and women of low moral fibre instead of worrying about tenants, rent and maintenance, because it looks like its going to have the same results.
Regards Adam