HELP: Advice and opinions URGENTLY needed.

josko said:
My PPOR payments are $6500/month! My total rental return/month would be $3040/month. Regards JO
Click to expand...
Wow thats some ballsy stuff you're doing there Jo.:eek:

I have been worried about paying 1/2 that amount on my PPOR gross and renting space to my business and renting the g/flat on the property makes it even less than that....but I still reckon its too much (might have to re-think)

Overall, when you see you can rent a place exactly like your own PPOR now for less than 1/2 the mortgage you now pay .....what you plan to do makes sense.

All the best with it all.
 
Aimjoy said:
Wow thats some ballsy stuff you're doing there Jo.:eek:

I have been worried about paying 1/2 that amount on my PPOR gross and renting space to my business and renting the g/flat on the property makes it even less than that....but I still reckon its too much (might have to re-think)

Overall, when you see you can rent a place exactly like your own PPOR now for less than 1/2 the mortgage you now pay .....what you plan to do makes sense.

All the best with it all.
Click to expand...

Yes, I probably should ahve put those numbers into my first post, but it was hard enough admitting what I had to do in the first place.

I have never worried about the debt or mortgage, as long as I can service it. With the interest rates on my non-bank loans, and me not working full-time, it just caught up on me that fast, I was spinning.

I have had two loans go up over 5%.:eek:

I've always been creative, and as some have mentioned, this is a real test to see HOW creative I can be.

I am SO SO very excited about the next cycle. I will be alot more prepared and alot wiser. I am also glad that my mistakes are helping others not do the same....or even helping other investors as geared up as me to rethink and consolidate.

I still think using your PPOR as a gearing vehicle is the way to go.........but maybe not as far as I have!;):D

Only a fool doesn't learn from his mistakes.

Regards JO
 
If you consider best case scenario to worse case scenario, you still have some options left.
I know you said you would not consider selling the commercial property, but worse case, if you had to sell, then surely that is another option that has to be considered?

Its not like you don't have a number of options to choose from, as tough and unpleasant as some of them are.

Everything has a price, and is for sale at a price as far as I am concerned.

What you have are the tools and knowledge to rebuild when times are better.
You can't put a value on that.

kp
 
Update:


Thanks to GoAnna's idea, it seems I can exchange three IP's for my PPOR and get my worst loans onto my fixed rate of 8.69%. I found out my ERF was $22500 to break!:eek:

My Solicitor had a heart attack at the thought of trying a settlement with four banks!:eek:

But this way I can transfer my mobius property over. In a warped, weird sort of way I am actually enjoying solving this. These are interesting times!

Regards JO
 
Great stuff! :D

I've also locked that info away for future reference GoAnna. My guess is that suggestion will save money for others too, not just Josko.

Jodie
 
The risk of course is the new valuations which may come in lower than expected but if the plan is to pay down loans anyway this is less of an issue.

If you can retain the cheapest loans, and avoid break fees it helps with costs now as well as ongoing each month. And $22,500 is money is anyone's language......well maybe not the USA govt with their recent bills :eek:

I have reached new levels of creative finance due to my own situation these past few months...
 
Anna / Josko

I take it the solution (in part anyway) was a equity swap. Could you please provide further details of how this worked?

Thank you
 
boomtown said:
Anna / Josko

I take it the solution (in part anyway) was a equity swap. Could you please provide further details of how this worked?

Thank you
Click to expand...


Yes, we are on our way to a solution! I must say I am feeling lighter every day!

What GoAnna suggested was that I exchange the securities (properties) attached to my PPOR loan with Bank West.

I have rung Bank West today and they have said this is fine.

SO:

Firstly, I need to sell my PPOR.
At settlement of my PPOR I will have the representing banks for 2 or 3 IP's also there. The purchaser of my PPOR will hand the cheque to my solicitor, who will then disburse the funds accordingly to the IP banks. Therefore settling the mortgages on these IP's. Bank West will then exchange properties and take on the titles for the IP's (still at 80% value of the IP's).

The buyer walks away with the title to my PPOR and I end up with the same loan representing my 2or 3 IP's (got to work that one out yet), but at a much cheaper interest rate.

I do not have to provide financials! OMG!:eek:

I DO need to pay for valuations on the properties I am exchanging. As GoAnna mentions, some have dropped in val but I will cover the shortfall with the left over money from my PPOR sale. My Beenleigh property has held up, as have I think, Scarborough. This is to say, I did not refinance them when my LVR was 70%. They would now be back to 80%, if that.


The problems I forsee are;

1. Having 3 or 4 Solicitors line up the exchange. I will also have to pay a small fee @$100 for each Solicitor of the settling banks to attend the same office of my Solicitor. The other problem is that we organise all of this and the Buyer's can't meet settlement with only a day or two's notice.

2. My valuations come in unrealistically low. I'm only a little concerned about this as I have a few properties to choose from. My Mobius Loan property, would you believe has had the biggest fall and this is the one I really need to get rid of.

Any other problems? Other than the bank saying it's changed it's mind???:confused:

Regards JO


PS: I have had a couple of replies to my JV offer.......

and 100 Kudo's to you Go Anna:):):)
 
Book settlement a long time in advance and phone them every day to make sure the banks have everything they need and don't forget until they are absolutely sick of you and looking forward to settlement more than you :p

Thank you for the write up Josko - Ill store that away.
 
Hi Jo

Its great you are finding a solution. It all hinges on selling your PPOR tho and this is where you might have a problem. As you know the central coast market has just about stalled (i'm guessing you are somewhere between Avoca, & Forresters) with prices and volume down. Tho your specific area might be ok, i'm not sure exactly where you are.

I wouldn't put too much faith in the agents selling price and your property might sit on the market for quite a while if he's priced it too high just to get the listing. That's the last thing you want. Did he give you reasons why its going to auction? Did you get a couple of appraisals? A valuation?

On the other hand it might sell quickly if you get low offers. In that case it will not help your financial situation as much as you wanted.

Good luck with it and as the saying goes "hope for the best but prepare for the worse" or something like that.





josko said:
Any other problems? Other than the bank saying it's changed it's mind???:confused:
Click to expand...
 
I've just caught up with this thread, and there's some great posts. One question is about selling your PPOR? Is your cashed up neighbour not interested in buying the lot, and renting back to you? Or would the rent be out of your price range? Sorry if this has been covered.
 
update:

Well, I have had 3 Agents through and am learning quite a bit about sellling property. What also helps is my tenant downstairs is a realestate agent but not in my area.

He has come up with a great idea which would be interesting for all to know.

In response to Evan's post, I am convinced that auction is the way to go with my
ppoR. If you've read my posts you'll know my house has an x factor. It is the sort of property people could pay an extra 100k for to be in the street and have the views, AND double income. The street has held it's own and I am optimistic.:). Agents have differed in price by 200k. The most negative agent owns an absolute mansion and told me it was a knock down....The most positive agent was jumping out of his pants at the thought of selling it.

I'll start a new thread as I hope some agents on the forum will see it and give some feedback.


Meanwhile, I have had an offer on an IP - low, but it's a start. :)

Regards Jo
 
Hi,
Someone in the Blue Mtns has been advertising a private house sale on Vega radio station, complete with birdsong in the background.... so perhaps that's another option for getting interest in the house!
Pen
 
Before you have an inspection smear cinnamon on the stove rings and turn the stove rings on for a couple minutes.

Makes the house smell amazing - like freshly baked apple pie.
 
Thanks for your suggestion Boomtown,

Hubby has been burning the incense!:p

Well we had 21 agents track through yesterday. I've signed up.

On top of that we have accepted an offer on our Beenleigh property.:( very sad to see it go, but you do what you have to do. Have a damn bad agent though. Not happy there. She wants to write up another contract as the Buyers have changed their minds about who's name is on the contract. Tell me if I am wrong but I have told the agent I want it back dated to the original date of the signed contract. I don't want to wait any longer than I have to if they are going to back out because of some ridiculous building report or finance.


I am in some strange way hoping that it falls through. It will however ease our cashflow.......

The kids are starting to get excited about moving, we have really been amping it up......a backyard, somewhere to play with friends, a family room, an office for Dad, maybe a pool. The funny thing is, we have really outgrown this house anyway! The new baby is now in our office and the office is spread between the kitchen and lounge room, and my bedroom. We have computers everywhere! Call me optimistic but I am beginning to see the light!:D

Thanks all, for your lovely words and helpful suggestions.

Regards JO
 
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