Insurance

W

WebBoard

Guest
From: Mike .


LOSS OF EMPLOYMENT
From: RAY
Date: 6/9/00
Time: 11:10:53 AM

Hi, every one. Great forum. I have 2 ip, both going well. Had them 18 months, loan $300,000 i/o @ 7.30%. Both rent for $215 per week. Have postive cash flow and have had properties revalued which show capital growth of 12%. Would like to buy another ip.

If worst case loss of employment, would i have to sell or could i keep them even if had to go on new start allowance? Might never happen but interested if any one has had this happen to them thanks.
 
Last edited by a moderator:
Simon R

Reply: 1
From: Mike .


Re: LOSS OF EMPLOYMENT
From: Simon R
Date: 6/9/00
Time: 11:48:50 AM

Would the income & property value exclude you from Newstart?
 
Last edited by a moderator:
Ray

Reply: 1.1
From: Mike .


Re: LOSS OF EMPLOYMENT
From: ray
Date: 6/9/00
Time: 3:00:25 PM

Hello simon i dont know but as i have a loan on the properties not own them outright i believe i would be able to claim unemployment benifits.

regards ray
 
Last edited by a moderator:
Simon R

Reply: 1.1.1
From: Mike .


Re: LOSS OF EMPLOYMENT
From: Simon R
Date: 6/9/00
Time: 3:12:25 PM

Ray, does the DSS (or whatever name they operate under these days) count the loan and interest as a negative? I would have thought that the income coming in from the rentals may disqualify (or reduce) the amount of newstart you would be eligible for. The other issue is the value of the properties, I know that an owner occupier is OK, but owning 2-3 IP's ..not sure what they'd say. I was almost going to tell you to call them and ask, but only if you have a spare week to hang on the phone. Good luck :)
 
Last edited by a moderator:
Geoff1

Reply: 1.1.1.1
From: Mike .


Re: LOSS OF EMPLOYMENT-insure the risk
From: Geoff1
Date: 6/9/00
Time: 7:17:55 PM

Ray, If loss of a job through redundacy or ill health is a concern then take out insurance for those risks. It would be peanuts to the cost of selling and the lost opportunity cost. Why take the risk of going back to square one when you are doing so well. The other concern is if you lose the job at the time of a re-finance the bank may refuse to roll-over the loan due to your changed circumstances. ie You fail their serviceability criteria. It may be possible that they would force you to sell up the lot!

Are there any senior bank loan people out there to comment on this? An acquaintance just this week said this is what happened to him and he got wind of it before it hit the fan and was able to buy time. Get a quote on the insurance! It might be the smartest thing you do all year.

Give the forum some feedback as Im sure your question and my comment are going to cause some restless nights. Are there any insurer /investors on the forum who would like some business?

Geoff
 
Last edited by a moderator:
Ray

Reply: 1.1.1.1.1
From: Mike .


Re: LOSS OF EMPLOYMENT-insure the risk
From: Ray
Date: 6/9/00
Time: 8:30:42 PM

geoff great advice. I didn't know you could insure for unemployment. Can you recommend an insurance company?
 
Last edited by a moderator:
Back
Top