澳洲Australia property Need some advice in my current situation


在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m


We bought our first home as first home buyers in around 2002 an Altona Meadows 4 bedroom home, living and rumpus, double garage, 2 toilets, kitchen, front yard, back yard, for $230,000, I think we were with a credit union Circle Credit.

We used to rent out an appartment in Toorak when we came to Melbourne in year 1999 and my dad was doing tiling to pay for all the bills.
We came from Auckland New Zealand where we rented out and lived in quite a lot of different homes.

Before that we lived in Russia we moved to New Zealand around 1995. In Russia my dad did business like for instance we were goingto buy 2 shipping factory vessels which were going to produce all kinds of seafood products. it was kind of dangerous at the time the army was consription at that time so we moved out my brother to New Zealand and later my family and I moved to New Zealand all together. Its thought to be that we owned millions if not billions of some kind of money to the Government if what not.

Going back to my current situation where we are currently living in the Altona Meadows home so at the begining we has a mortgage of $230,000 but since we refinanced a lot now we have a morgage of $330,000 and repayments of $2000.00 per month interest only.

Around the year 2010 we bought an investement property for around $190,000 we paid a deposit from the refinanced money and have a mortgage of $160,000 for this Werribee home that we fully renovated with a 700 sq meter block. For this homw we are with RAMS and currently pay around $950.00 per month.

My dad is self employed and earns around $100,000 I am guessing we spend what ever we earn very hard to keep any money what so ever. We have 2 brand new cars one is for my dads tiling self employment toyota hiace and rav 4.
I my self started a wide format digital printing business where we got another loan of $600 for the equipment all of this is out of Altona Meadows home.
It is currently not generating any income as I am still starting out its been operating for about a year.

Going back to my question. We are currently in the process of renting out the Werribee home but we rarely get an inquiry as we are bit steep on the rent of $280.00 but any way. Should we sell the Werribee home or buy something else it would be good to hear something.  

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Is your asking rent too high for the property? Sometimes it is better to drop the rent and get someone in asap  

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Drop the rent on the Werribee IP to get a tenant in.

Next, do a budget and work out where the spending is going. You can't continue to live beyond your means. Make some tough choices. You might have to go back into the workforce, you might have to sell one or both properties or you might be OK as is. Until you know what your current position is, you really don't know what to do, and to ask us, who know nothing of your financial situation, for advice will not really produce anything tangible unless we know the right questions to ask.

Now, to be blunt, we only really need relevant information too. We don't need the family history, although it might be interesting, it is not going to be of help in this situation. So, what we need is:

Income
Expenditure
Value of properties (both)
Market rent of both properties
Do you have any savings?
Do you have any other debts other than the mortgages?
Are you willing to sell the cars, if need be?
Are you willing to go back into the workforce and how much are you able to earn?

If you give us all relevant information someone may be able to give you some ideas on how to get out of the mess you seem to be in.  

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Income
$160,000

Expenditure
$160,000

Value of properties (both)
Werribee property- $240,000
Altona Meadows property- $450,000

Market rent of both properties
Werribee property- $250.00 per week
Altona Meadows $340.00 per week


Do you have any savings?
No

Do you have any other debts other than the mortgages?
Yes
Cars
Rav4 $779.00 per month
Toyota Hiace $470.00 per month
Equipment $675.00 per month
Credit Cards $400.00 per month


Are you willing to sell the cars, if need be?
No

Are you willing to go back into the workforce and how much are you able to earn?
Not willing to go back to workforce currently a student.
Able to earn around $20,000 to $35,000  

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with your situation.

Sell everything start fresh...

without a tenant and moving into negative gearing will not do any favours since you're a student  

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From your figures it looks like you have to pay down your debts before any bank will even consider lending you any money...  

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Just my opinion.

Drop the rent to market. Every week its empty your losing 2-3 months what you would get from the slightly higher rent.

Hit that credit card and then lock it away in the safe. Don't use it unless you can afford to pay it off that month.
Use a tax return perhaps to get it zeroed as a start.

Make do with your new cars, keep them, don't upgrade in the next couple years.
Target your car loans if you don't have a early repayment clause after the credit card. I'm guessing they will have a high interest rate. See if you roll them into a house loan perhaps to reduce the interest rate.

Make sure your claiming all you can on the business tax wise. I hope you saw an accountant and have it separated properly from your parents assets.
Might be a bit harsh but it almost sounds like an expensive hobby than a viable business.  

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Rodion3028 said: ↑
Going back to my current situation where we are currently living in the Altona Meadows home so at the begining we has a mortgage of $230,000 but since we refinanced a lot now we have a morgage of $330,000 and repayments of $2000.00 per month interest only.

Around the year 2010 we bought an investement property and have a mortgage of $160,000 and currently pay around $950.00 per month.Click to expand...
Rodion3028 said: ↑
Income
$160,000

Expenditure
$160,000

Value of properties (both)
Werribee property- $240,000
Altona Meadows property- $450,000

Market rent of both properties
Werribee property- $250.00 per week
Altona Meadows $340.00 per week


Do you have any savings?
No

Do you have any other debts other than the mortgages?
Yes
Cars
Rav4 $779.00 per month
Toyota Hiace $470.00 per month
Equipment $675.00 per month
Credit Cards $400.00 per month


Are you willing to sell the cars, if need be?
No

Are you willing to go back into the workforce and how much are you able to earn?
Not willing to go back to workforce currently a student.
Able to earn around $20,000 to $35,000Click to expand...
OK, it's a little disjointed, and I was hoping for a little more detail, but I'll see what I can do.

You say that your income is $160k, but you neglect to say if this is earnt by one or more people in the household. This will effect the take home pay substantially. Also, with the Hiace, I'm presuming that this is a Business expense and is taken care of by the business, in which case this is not a personal expense at all, so really does not come into the equation. I'm also presuming there are three of you contributing towards the family. Your father, yourself and your spouse. Is the income shared? Do you all have an equal say in where it goes?

So far expenses are:

Rav4 $779.00 per month
Toyota Hiace $470.00 per month
Equipment $675.00 per month
Credit Cards $400.00 per month
Mortgage PPOR $2000
IP $950

This totals $5274 in repayments per month before you even look at living expenses. A total of a massive $63288 per annum. Wow!

Using a worst case scenario here. Income earnt by one person only. Totally discounting income & expenses from the IP as well, so your overall position is going to be substantially better than my prediction when you account for the IP in the correct way AND if the income is shared at all.

So, using a tax calculator with an income of $160K I get a tax payable of $48700 leaving $111300 as the net figure. Take away your expenses and you are left with $48012. This equates to $4k per month to live on AFTER tax AND your mortgage. Get a tenant in and you have even more.

I'm sorry, either there is a LOT you are not telling OR you have some real issues with spending. I'd suggest doing a budget. An honest budget, that is, listing where ALL the money goes and making some hard decisions about cutting back, because I really can't see a problem with living on $4k per month.

Oh, and while we're at it......listen to Doovalacky. Get rid of that CCard. Pay back more than the minimum (substantially more), pay it off and cut it up.

Make sure that you are claiming everthing that can be claimed for both the IP and the Business(s). Paying too much tax is something that should be avoided. Make sure you are using a good accountant.  

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Re:

Personally i would get rid of the rav 4 and buy a cheap second hand car.
Go find a job if your printing business is not working out.
As the above posters have said,drop the rent on the IP,it's a no brainer.
PPOR get a renter in or rent the PPOR out for somewhere cheaper.
Credit card,get rid of it,if you can't afford to pay back monthly.
Look at your spending habits and see what you can cut back on.
You have to make sacrifices,it's up to you.
Sink or swim,Good luck!  

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sell everything

take the train.

If you're going to struggle to make repayments.. the asset isn't actually worth it.  

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You seem to have all your personal and business finances muddled together, and you don't even know exactly what your dad earns. You all need to see an accountant ASAP. If your household income includes undeclared "cash jobs" then you're pretty much on your own but it wouldn't hurt you to take some basic accounting and small business courses. You also need to focus on getting rid of those RAV4 and CC expenses, that is an easy $14k a year.  

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