Please Can Anyone Help Us??

Who knows? 5-10 years and we have insurance for any breakables in the meantime.
Anyway, that is not what I am concerned about now.
I just want to know if anyone knows a way for us to refinance, restructure or just borrow money using the equity in our houses to access $30000 (or more) of the equity.
We are at 78% LVR at the moment. We have 22% equity in our houses to use, how do we get at it?
How much can we get on a low doc?


The reason why no one has been able to answer this question is simple - its not possible.

I don't think any lending agency (bank or other) would give you money in your situation.

First of all you are going to be $16,000k behind before you get a tenant in the 2nd property (currently 8k - Oct another 8k)

What is the selling market like in your area?

Is the $650k achievable?

I would be looking at selling the one you currently reside (they are on separate titles - yes?)

Otherwise you will likely loose both to a forced sale.
 
If you are so set on getting another loan and furnishing the place, why not go for one of those places that offers no deposit, no repayments for 12-24 months.

..or getting everything on a credit card. Way too risky for my tastes but, horses for courses I guess.

Cheers,

The Y-man
 
Well thanks for the criticism evand. I thought this site was supposed to be helpful.

You're getting help and advice - its just you're not liking what you're hearing.

Referring back to the richest man in babylon - where do you think you'd fit into the gold lenders client base?
 
I'll rent you my old house for $100pw :D (you'd even get rent assistance with that I'm sure)

No chances of renting the current house out with *your* furniture in and getting some second hand furniture for yourself? Desperate times call for desperate measures ...
 
Instead of aiming for high quality furniture or outfit go with the 12-24 months and slightly cheaper stuff. Then rent the place out for slightly less according to the quality of furniture.

This at least saves you borrowing 30K. Just make sure you put any excess money from the rental aside so that when your free payment term finishes pay it out if the contract allows.

Also you can try the rent to buy options. May cost a little more in the long run but allows you to do what you need to do now and that is rent the place out.

What furniture are you actually needing for 30K as a holiday rental?
 
every time i stayed in a $$ 280 a night place , its only had cheap end furniture , in it??? i would think a cheap package deal, intrest free would be your answer, gives you 12 mths to pay it , using the income from the rent, ???

or sell one and keep one, ? before "they" take them both!

sell your boat, sell and down grade the car/cars???
 
I apologise if you take it as criticism. Most of the time what people want to hear is not what they need to hear.

And if you don't want to hear it, it can be interpreted as criticism.

I'd sell both, get the weight off my shoulders and move forward when appropriate.

Well thanks for the criticism evand. I thought this site was supposed to be helpful.

Beside that, most people ask for opinions and help only to confirm what they have already decided to do anyway.

That's why all the back and forth happens on this thread. Its not what you have half decided to do so you question the advice.

Very rarely does someone accept advice that is not even close to what they were planning to do anyway. Regardless, good luck with it.
 
well if you're so desperately wanting to keep the house:
1) get another credit card, say, for 15k
2) go to one of those places where you can get loans approved in 15 minutes, and get another 15k. If can't get 1), get a loan for, say, 20k and bargain enough so you can get your house furnished with quality stuff with that money.

I think 1) are 2) are insane. I'd personally sell 1 house.

good luck.
 
Well thanks for the criticism evand. I thought this site was supposed to be helpful.

I think his questions are kind of appropriate? And perhaps might save you and others some angst next time they might think about similar ventures. Knowing that area, I wouldnt have thought that employment was going to be great unless you are going into the bed and breakfast 'sea change' kind of venture.
 
Y-Man
When you are paying $250 to $280 per night, don't you think you deserve furnishings of quality? Maybe that is why we are making so much money and rental no. 1 is in such high demand....AND we know No.2 would be as successful.


Maybe - But YOU cann't afford that. Have you thought about renting it out with much cheaper funiture UNTIL you can afford more expensive stuff? Hell, maybe you could leave your funiture there and get some cheap crappy stuff from St Vinnies for yourself until you can AFFORD more - save your moving costs that way too.

To be honest with you - It doesn't matter how much financial sense it might make to you, The banks are not going to lend you any more money. You don't meet their employment requirements or their income requirements. You are just whipping a dead dog trying to go this way - and messing your credit record to boot.

But hey if you are really determined to get yourself into MORE debt, then have your considered using a store card or store finance at harvey norman or somewhere. They tend to be much more lax on their lending. Or perhaps look at something like a funiture rental company - again just until you can afford what you want.
 
Harvey Norman are doing the package where no interest is required until 2012. The risk is that you still wont have the money to pay it back then, and then the interest rate is horrendous. The trick is to pay more than what they say to pay because they calculate it so that you will always end up owing something at the end of the period, and then whammy. We recently furnished (with leather lounges, flat screen TV) a two bedroom apartment for around $15,000. Included all kitchen facilities, washing machine and fridge. Better quality than what I have at home too.
 
We are at 78% LVR at the moment. We have 22% equity in our houses to use, how do we get at it?
How much can we get on a low doc?

You can access 2% if you are clean on a lo doc (which you are, unfortunately, not)
You can access 22% if you sell

You will probably be able to access 0% if it's sold for you

You mentioned in your first post something about private funds... I work for one of those private, lender of last resort types, and I'm sorry but if we cant look at it then chances are.....
 
Immediate solution:

1. Move to the cheapest place in the city you can find.
2. Make sure House #2 has at least two double bedrooms! If there's two bathrooms, even better.
3. Forget the $30k gear, put in nice second-hand stuff. Should be under $5k easy.
4. Tap your friends and co-workers - many of them would jump at the chance for a weekend getaway at mates rates especially if they can halve it again by taking another couple! This will get you immediate bookings without worrying about two identical houses competing with each other.

Should help until cashflow eases and House #2 can be upgraded to House #1 standard.
 
So, you're in a pretty deep hole and trying as hard as you can to dig it deeper?

I'm in the 'flog one property and take some stress off' camp.

What's the point of going deeper into debt on a punt?

So you only end up with one waterfront property? At least you live to fight another day.

Scott
 
3. Forget the $30k gear, put in nice second-hand stuff. Should be under $5k easy.
I'm not sure why you didn't think of this - check out second hand places, eBay, local shops. You can get some very nice stuff cheap, the catch is you can't get it all at once from the same boutique furniture shop. For heaven's sake, there's even Ikea! Maybe not under $5k for your entire house (depends what kind of washing machine, fridge etc you can find I guess) but it wouldn't be a great deal more, especially if you have a trailer and can collect your own.

My house is out of contract next week and I might end up looking at renting it out semi-furnished. My first port of call will be some people I know who are always complaining that they have too much furniture in their shed :cool:
 
Y-Man
When you are paying $250 to $280 per night, don't you think you deserve furnishings of quality? Maybe that is why we are making so much money and rental no. 1 is in such high demand....AND we know No.2 would be as successful.


It's still quite a lot for furnishings. Hunt around for some quality 2nd hand office furnishings and it may save you a bit.

For $280 per night I'd like someone on hand to get a cold one out of the fridge also as the wife sure as well won't. ;)
 
Just as an aside on the furniture thing, Elf.
A mate of mine rents a holiday house down the coast. It was unfurnished. When he signed the lease, he sent an email to everyone he knew asking if there was furniture they didn't want. The offers came flooding back - including whole houses of stuff (deceased estates).
He arranged a day, hired a truck, and went around collecting stuff. Furnished an entire 4 bedroom house - including white goods - free. And there was some great stuff. When he gets rid of the house, everything will go to a local charity.

NB. I do understand this is not suitable for a higher end holiday rental.
 
Personally, I would be paranoid about the one bad client that damages the stuff, and you're suddenly up for another $30k.... :(

Cheers,

The Y-man
 
Agreed. As a risk averse investor, I'd probably want to sell 1 house while I can - on my own terms - rather than have things go from bad to worse and have the bank sell the place.

Hopeful1, I do feel for you, it is a terrible predicament to be in. I'm just wary of throwing more money into a deeper hole. Personally I would get out while I still can. You probably don't want to agree though as you seem pretty optimistic that the situation will turn around. If it does, good luck to you :)
 
Going to have to agree - sell at least the one you are living in. Rent a small affordable place. Regroup, replan.



According to your figures, there is very little equity to access in any case - you are at 80% already of a valuation done 2 weeks ago. How much were you hoping to access (and still managed an INCREASED mortgage)?

It must be a very stressfull time for you - been there done that. We sold half our IP portfolio at (what turned out to be) the bottom of the Melbourne market - but we feel much better having done that, than tried to have survive through it. Not worth it.

The Y-man

yes agree,

I see the standout problem in your scenario is your own admission that you BOTH have not been able to find adequate jobs. You have large mortgages and you both had no income.

I read your husband now has work..is this permanent?

I'm with Y-Man. I see your options as:

1. Sell one, get rid of the debt that is crippling you and move forward rather than backwards. Forward even to a city with work?

2. Buy a Furniture package with HN as suggested by Pushka (great idea Pushka:)), or credit card and start cleaning houses, packing shelves etc and get rid of your bad debt.

Low Doc is not an option if you are not self-employed. In any case you have less than 30k to access at 80% LVR (Lo Doc LVR).

I know you want option 2, as any advice given to the contrary doesn't sit well with you. I can understand why though, when one considers they EACH would potentially return $54k/pa according to your post. More than covering your debt.

I understand your Risk Profile is high: Do you have credit cards? Can you buy a Furniture Package?

Regards JO
 
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