I HATE MONEY!!! All It Does Is Cause Strain & Stress!!!

[Watermelon Man]

I NOW HAVE A PLAN! Thanks to Everyone For Their Comments To My Dilemma

I hate money!!! I struggled in my old job earning $33,000 paying off my own place. Now I earn double that ($65,000) in my new job; bought 2 more properties this year & still struggle...what has happened...bloody nothing!

And now when my parents are struggling to live with an outstanding rates bill of $6,500 & mounting bills I can't bloody help them! I'm useless! They could lose their house! I've tried & tried to help them refinance their loan - went to the bank - said no because of serviceability & outstanding rates. Went to a broker & still no luck even at 9% interest rate on a small $55k refinance loan - house in the country where no banks will even look at; equity release is too small when their home is worth $120,000.

I hate money! I hate it! I feel like selling all 3 properties & just renting - get rid of all this strain!! I'm balling my eyes out thinking about it all! What sort of person am I when I can't even help my own parents!

 

[chrispy]

WM Man

Calm down, take a big deep breath and lets see if we can't find a resolution. I am sure the SS logical thinkers will come up with something.

Have your parents contacted the Council to ask for time to pay the Rates bills? My Council allows quarterly payments, or you can make an agreement to pay them off.

Are they able to borrow against super or some other equity?

Chris

 

[aaarghhh]

And now when my parents are struggling to live with an outstanding rates bill of $6,500 & mounting bills I can't bloody help them!

Six thousand five hundred dollars!!! That's a big rates bill! Is this for 1 year? Is this a RES property?

Chris is right, check if the local council allow quarterly or monthly payments. Also try speaking to the supervisor/manager of the section responsible for rates collection / allocation and asking for an extension of time to pay or something along that line. They might be able to have some agreement that is not known to the general public.

Explain the situation. You never know if you don't ask. It's a good opportunity to practice negotiation skills.

Cya
Aaron

PS... Is there anything you can flog on ebay. I'm trying to get my wife to lose the kids extra toys and crap..... How many Barbie Dolls does a child need.....

 

[ermen]

Dude,

The casue of your problems is arguably not money but the lack of it. Would you still be able to help them when you were earning $33k and paying off your own place at the same time?

Anyway to help your situation, what's the nature of their debt? is it one-off? will they struggle even after paying of their outstanding rates?

 

[GoAnna!]

Hi Watermelonman

Sounds like a tough time.

Have your parents gone to seek any kind of financial help? I assume that if they are struggling with a property worth $120K that they are real battlers and that the rates bill has been accumulating over a number of years.

Have they spoken to the council to make an arrangement to pay it off over time. They could perhaps have a financial counsellor (ironically usually employed by the council) advocate on their behalf.

Do you know how they got to this position? Are they on very low incomes? Have they been living beyong their means? Is there any way they could increase their income?

It must be tough not being abe to help them but it sounds like they may have on ongoing situation rather than a one off?

 

[arungounder]

Why dont you use the equity from both your property's to pay off the $6500 and may be your parents can pay you back later. As a few people have mentioned here has the Rates accumulated over the years to get to this size?

 

[The Y-man]

And now when my parents are struggling to live with an outstanding rates bill of $6,500 & mounting bills I can't bloody help them! I'm useless! They could lose their house! I've tried & tried to help them refinance their loan ...

I applaud your noble efforts - however, I can not help but feel the focus of your efforts may be misplaced? Refinancing and getting them further in debt to pay debt may only make the situation worse...... you may need to dig further and find the true cause of the debt(s).... which could be very painful for you and your parents.

Cheers,

The Y-man

 

[Watermelon Man]

Rates bill has been over a number of years & every year the council charges them 15% on top of their outstanding rates, so they pay $1,400 a year in rates plus $1,000 interest bill on top of that just for the rates. Usually councils force owners to sell their home when rates pass the 3-year point; which is about now, so my Dad is getting quite anxious about it all.

I cannot access equity from my own properties as I only settled on the 2nd IP in mid July & my broker said I'd have to wait at least 6 months before a bank would look at refinancing for me. Me thinking I earn $65k a year I would easily be able to get a $5,000 credit card - 2 banks declined because of my 54% DSR or whatever it is. Only managed to get a $1,000 credit card via NAB to which my loans are through Homeside.

They are Pensioners: Mum is 62; Dad; 69 so age is a factor as well. Basically they have 3 debts with around $900/month in repayments ($13.5k home loan; $6.5k rates bill & $29k business car loan) - they wanted to refinance & consolidate all these bills - borrow around $55k to pay out all loans & have $6k left over for savings; therefore lowering their monthly repayments from $900/month to around $370/month. Then in 2-3 years time sell their home & pay out the $55k consolidation loan.

I live in Cairns. My parents moved out of their home in Greenvale near Charters Towers, & came back to Cairns. They cannot rent the home because there is no rental market in Greenvale. Very small ex-mining town. They pay rent here in Cairns & besides some money from my Mum's ironing business, they have been struggling for a while. I have helped my father out in his business to the tune of around $35k over the past 2 years; but the business has struggled massively & he's made no money over those years. I feel too upset to talk anymore I'm going to bed wishing this all to go away.

 

[BayView]

Rates bill has been over a number of years & every year the council charges them 15% on top of their outstanding rates, so they pay $1,400 a year in rates plus $1,000 interest bill on top of that just for the rates.

I cannot access equity from my own properties as I only settled on the 2nd IP in mid July & my broker said I'd have to wait at least 6 months before a bank would look at refinancing for me. Me thinking I earn $65k a year I would easily be able to get a $5,000 credit card - 2 banks declined because of my 54% DSR or whatever it is. Only managed to get a $1,000 credit card via NAB to which my loans are through Homeside.

They are Pensioners: Mum is 62; Dad; 69 so age is a factor as well. Basically they have 3 debts with around $900/month in repayments ($13.5k home loan; $6.5k rates bill & $29k business car loan) - they wanted to refinance & consolidate all these bills - borrow around $55k to pay out all loans & have $6k left over for savings; therefore lowering their monthly repayments from $900/month to around $370/month. Then in 2-3 years time sell their home & pay out the $55k consolidation loan.

It looks as though they may be better off to bring forward the inevitable; selling their own home and down-size.
As you say; they are going to sell in 2-3 years time anyway.
I can't understand how they have a 'business car' loan for nearly $30k and they are both pensioners?
If they are paying interest on their rates bill because it is overdue then clearly they cannot afford their house, or the car, or both.

Also, if you are earning nearly double what you used to, and the money is still tight, then it would seem that your I.P's are quite neg geared?
It may be a good idea for your health (mental condition from stress can be devastating) to sell whichever property has the most equity and use the excess funds to pay down the debt on the other 2. You''ll still have 2 properties that you can handle hopefully.
It's not your preferred option, but you need to get some control back over the cashflow.

 

[Bandita]

Rates bill has been over a number of years & every year the council charges them 15% on top of their outstanding rates, so they pay $1,400 a year in rates plus $1,000 interest bill on top of that just for the rates. Usually councils force owners to sell their home when rates pass the 3-year point; which is about now, so my Dad is getting quite anxious about it all.

I cannot access equity from my own properties as I only settled on the 2nd IP in mid July & my broker said I'd have to wait at least 6 months before a bank would look at refinancing for me. Me thinking I earn $65k a year I would easily be able to get a $5,000 credit card - 2 banks declined because of my 54% DSR or whatever it is. Only managed to get a $1,000 credit card via NAB to which my loans are through Homeside.

They are Pensioners: Mum is 62; Dad; 69 so age is a factor as well. Basically they have 3 debts with around $900/month in repayments ($13.5k home loan; $6.5k rates bill & $29k business car loan) - they wanted to refinance & consolidate all these bills - borrow around $55k to pay out all loans & have $6k left over for savings; therefore lowering their monthly repayments from $900/month to around $370/month. Then in 2-3 years time sell their home & pay out the $55k consolidation loan.

I live in Cairns. My parents moved out of their home in Greenvale near Charters Towers, & came back to Cairns. They cannot rent the home because there is no rental market in Greenvale. Very small ex-mining town. They pay rent here in Cairns & besides some money from my Mum's ironing business, they have been struggling for a while. I have helped my father out in his business to the tune of around $35k over the past 2 years; but the business has struggled massively & he's made no money over those years. I feel too upset to talk anymore I'm going to bed wishing this all to go away.

Sounds very frustrating and upsetting. However, have you spoken to any other brokers? Do you have equity in either of your properties, or are you leveraged to the max? While you may or may not be able to finance, if you have a bit of equity in your home, you may be able to take a LOC against your property, us that to lend to your parents. I'm presuming it's the business car loan which is causing that massive monthly repayment? You could help them pay that off with equity from your property (if you wanted to of course) - and they could pay you back rather than the financers - much lower interest rate for a home loan than a car loan.

I'm sure there's lots of options - speaking to a few clever mortgage brokers on this forum might be the answer to some of your worries!

Best of luck!

Cheers,
Jen

 

[aaarghhh]

Rates bill has been over a number of years & every year the council charges them 15% on top of their outstanding rates, so they pay $1,400 a year in rates plus $1,000 interest bill on top of that just for the rates.

Why was this left so late? There must've been signs (late notices) about this. That's not good.

Your are gonna need a lot of barbie dolls to flog on ebay......

Call the council and have a chat with them. Speak to a supervisor and ask them where they stand and what can be negotiated. I'm a big believer in everything is negotiable. I would have thought the council would have engaged a debt recovery firm (that'll be fun!) instead of a forced sale? My opinion would be a budget and stick to it.

They cannot rent the home because there is no rental market in Greenvale.

Don't discount other rental possibilities. Perhaps not like a 'normal' IP rental. Is there a shed or lockable storage onsite? Can this be utilised / rented out. Possible storage space in the shed or something?

 

[GoAnna!]

Rates bill has been over a number of years & every year the council charges them 15% on top of their outstanding rates, so they pay $1,400 a year in rates plus $1,000 interest bill on top of that just for the rates. Usually councils force owners to sell their home when rates pass the 3-year point; which is about now, so my Dad is getting quite anxious about it all.

I live in Cairns. My parents moved out of their home in Greenvale near Charters Towers, & came back to Cairns. They cannot rent the home because there is no rental market in Greenvale. Very small ex-mining town. They pay rent here in Cairns & besides some money from my Mum's ironing business, they have been struggling for a while. I have helped my father out in his business to the tune of around $35k over the past 2 years; but the business has struggled massively & he's made no money over those years. I feel too upset to talk anymore I'm going to bed wishing this all to go away.

In a previous life I worked with those that were struggling finally - and they came from many walks of life. My impression is that your parents have not sat down and talked to the council and nor have they sought the advice of a financial counsellor. If they do so they should be able to bring a halt to the rising bill. They may even get the bill reduced. The penalties are in place to force people to pay, not to make it impossible to pay. The way you mentioned your father was getting anxious made me think that he was not talking to anyone.

I am unclear what is happening in 2 - 3 yeasr time - why are they selling at that particular time? Do they plan to go back to the house to live at any time? I am worried that by consolidating their debt they will have even less from the sale of their house when they do sell.

You sound like you have been an extremely kind and generous son but I think the situation is not one that you can fix on your own. There is no shame in that. They need help not to increase their debt but to decrease it. You don't get out of a hole by digging deeper

Take care, be kind to yourself and to your ips becuase they have not created this situation. Ips will mean that your own children will not be in this situation down the track.

 

[ani]

Looking online there are only 3 houses for sale in Greenvale and they are all under contract.

http://www.realestate.com.au/cgi-bin/rsearch?o=def&t=res&a=s&u=GREENVALE&s=qld

If they want to stay in Cairns why not sell the house now?

I agree that they do need to sit down with someone and sort out their finances. That business car debt must be killing, is it necessary to keep the car?

 

[Watermelon Man]

Many thanks to everyone for their support & advice.

The reason for them waiting 2-3 years to sell their home is that the real estate market is ready to boom in Greenvale & over the next 2-3 years the house could double in value quite easily as other surrounding towns like Mount Garnet & Charters Towers are priced at at least $160k (MG) & $220k (CT) for a similar house at the present time. They've waited 12 years for the market to turnaround from paying $68k in 1995 & now it's worth around $120-$130k. They'd hate to sell now having waited all this time; only to see the town's prices double in 2 years; & think we could've made another $100k on our money by just sitting & waiting. All the positive signs are there as the prices have risen from $80k to $120k in 1 year! Run-down homes are selling for $100k. But I think they may have to sell in order to achieve getting rid of their existing loans.

I guess my parent's see that I've done quite well for myself - all in the space of 1 year - bought 2 IPs & my income doubled! And they want to be able to see some success in their life at their retiring age now.

Just all this talk & more talk about having to supply this & that to the banks is really driving my Mum crazy - she's sick & tired of hearing about it! They would rather plod on, than go & pursue trying to get another loan through another lender as it means having to supply another "novel" of information to the lender, etc.

They had a house for 2-3 years when they were around 25; & for the past 12 years they've had another house; the rest of the time in between they've rented.

I see my Folks having worked their entire life; & struggled for the most part of it; & they hear & see their other family/friends/relatives not working, travelling on overseas/nationwide holidays, buying new cars, renovating their homes, etc & they think why can't we do that? Why are we still working? Why are we still struggling? To get to that point in life (my Dad's almost 70) & think "we're only worth around $100k" after selling everything; & to still rent - IT JUST BREAKS MY HEART!! I so dearly wish I could help them however I am leveraged to the max with my properties.

 

[ani]

But Watermelon Man, this is obviously causing them much stress.What is the point of waiting another year or so?

Sometimes we have to do the tough thing right now and then start afresh.

You haven't explained why they have the business car loan; can they get rid of that car?

PS: I'd go up there for a couple of weekends, tidy the place up to present it in its best light and put it on the market.

 

[GoAnna!]

Hi WM

You are helping them ! The information provided above may be more invaluable than any loan if they apply it. It would certainly lessen the stress.

Excellent news on thei property increasing in value. I can see why holding on would seem tempting.

Best of luck to you all. Let us know how they go with the council.

 

[Watermelon Man]

But Watermelon Man, this is obviously causing them much stress.What is the point of waiting another year or so?

Sometimes we have to do the tough thing right now and then start afresh.

You haven't explained why they have the business car loan; can they get rid of that car?

PS: I'd go up there for a couple of weekends, tidy the place up to present it in its best light and put it on the market.

The business car loan is for a tourism business that my Dad started 3 years ago. I came on board & have financed around 75% of the costs for the past 2.5 years. The loan is for a 14-seat passenger bus/Hiace van that we use to transport tourists from their accommodation to our tourist destination. It has been a very hard slog; but I came onboard as it has given my Dad a fresh new sense of self-worth in the world knowing that he has a business again; after not working for around 10 years in the past (but that's another story which I am not going to talk about). Seeing him in happy & working is why I continue to help him financially in the business. Sometimes you have to do things "for love"; & even though it has cost me around $35,000+ which I may not ever see that money again; I still have no regrets giving it to him & my Mum to help them both out.

 

[ani]

The business car loan is for a tourism business that my Dad started 3 years ago. I came on board & have financed around 75% of the costs for the past 2.5 years. The loan is for a 14-seat passenger bus/Hiace van that we use to transport tourists from their accommodation to our tourist destination. It has been a very hard slog; but I came onboard as it has given my Dad a fresh new sense of self-worth in the world knowing that he has a business again; after not working for around 10 years in the past (but that's another story which I am not going to talk about). Seeing him in happy & working is why I continue to help him financially in the business. Sometimes you have to do things "for love"; & even though it has cost me around $35,000+ which I may not ever see that money again; I still have no regrets giving it to him & my Mum to help them both out.

Think about what else that van could do - Airport shuttle service, courier etc etc. Does anyone else provide a cheap service from the airport to backpacker accommodation?

 

[Watermelon Man]

Think about what else that van could do - Airport shuttle service, courier etc etc. Does anyone else provide a cheap service from the airport to backpacker accommodation?

Many thanks for your advice - it is much appreciated!

My Dad's tried to run a courier service but to no avail. The way the bus is setup (licensing-wise) - it is a free courtesy bus so we cannot transport people to & from others destinations; only from others places to our specific destination.

 

[Sunfish]

Would it be the end of the world if they sold their house?

I ask because in this thread: Home ownership versus leasing it is clear that "hidden expenses" of home ownership are significant. Toss it around. See if they would be better off renting and investing the cash-out from their house in an annuity.

When you are in a bind all alternatives must be considered. BTW Good of you to try so hard on their behalf.