Hello,
I have been pointed to this forum as a resource for some help and advise on my intermittent property-related cash flow problem which I need to solve quickly. Here are the bare facts:
Situation:
-Own 1st Property PPOR worth 1.65M, mortgaged to $1.05M
- Own 2nd Property IP worth 850K outright, rent 875pW, tenanted
- Not much other assets except for a valid court judgement against a major Australian insurer who has to pay me approx. $340K. However, and that's the core of my issue, that will not come through until roughly 07/2014. The judgement is not appealed against and the time to appeal against is has lapsed. My lawyer initially told me that I will get that money within 3 months of judgement so I made no special cash flow provisions. Suddenly it is all different and I have to wait much longer.
- No income at the moment except dividends 200K p.a. from own company from past profits (banks told me they cant consider that as income towards any type of loan). These are franked dividends.
- Rent income 875pW gross from IP goes to a trust so cannot count it as personal income. Had to use trust structure to purchase IP.
-My PPOR and the IP are in the same building, in fact it's a 2-unit strata scheme which is fully owned by myself.
- The entire property is a 7 BDR, 7 Bath duplex with 540 sqm living space, 5 car garage and massive ocean views
- I am not able to register a mortgage against IP until the claim against the insurer has settled because of some legal provisions so I have been told. I don't understand it fully either but I have to operate under this assumption. I can only mortgage it once the claim detailed above has been settled. Legal jargon.
- In order to have enough to live on until the insurance pays, I need some kind of a loan. The amount I need is $60,000. I am happy to register a second mortgage to the PPOR property, but I cannot against the IP, unfortunately.
- Exit strategy is that I wish to sell the entire strata in one hit in April next year.
- I need funds of $60,000 to bridge between now and say May 2014 to finance my daily living expenses.
I have previously tried all the regular financing and so on. My situation is so complicated that I have been turned down by two banks so far. I do not have much confidence that a lender operating under the same criteria as the banks will be able to assist me.
I welcome your suggestions. Thank you
I have been pointed to this forum as a resource for some help and advise on my intermittent property-related cash flow problem which I need to solve quickly. Here are the bare facts:
Situation:
-Own 1st Property PPOR worth 1.65M, mortgaged to $1.05M
- Own 2nd Property IP worth 850K outright, rent 875pW, tenanted
- Not much other assets except for a valid court judgement against a major Australian insurer who has to pay me approx. $340K. However, and that's the core of my issue, that will not come through until roughly 07/2014. The judgement is not appealed against and the time to appeal against is has lapsed. My lawyer initially told me that I will get that money within 3 months of judgement so I made no special cash flow provisions. Suddenly it is all different and I have to wait much longer.
- No income at the moment except dividends 200K p.a. from own company from past profits (banks told me they cant consider that as income towards any type of loan). These are franked dividends.
- Rent income 875pW gross from IP goes to a trust so cannot count it as personal income. Had to use trust structure to purchase IP.
-My PPOR and the IP are in the same building, in fact it's a 2-unit strata scheme which is fully owned by myself.
- The entire property is a 7 BDR, 7 Bath duplex with 540 sqm living space, 5 car garage and massive ocean views
- I am not able to register a mortgage against IP until the claim against the insurer has settled because of some legal provisions so I have been told. I don't understand it fully either but I have to operate under this assumption. I can only mortgage it once the claim detailed above has been settled. Legal jargon.
- In order to have enough to live on until the insurance pays, I need some kind of a loan. The amount I need is $60,000. I am happy to register a second mortgage to the PPOR property, but I cannot against the IP, unfortunately.
- Exit strategy is that I wish to sell the entire strata in one hit in April next year.
- I need funds of $60,000 to bridge between now and say May 2014 to finance my daily living expenses.
I have previously tried all the regular financing and so on. My situation is so complicated that I have been turned down by two banks so far. I do not have much confidence that a lender operating under the same criteria as the banks will be able to assist me.
I welcome your suggestions. Thank you
