澳洲Australia property Hubby has lost job | Sydney


在澳大利亚 is this a dumb strategy? Buy 20+ or as many properties in average+ areas which are cashflow neutral or just positive with low to average vacancy rates, or as many as i can afford Save as much $$$ for a buffer Wait 10 years, then on the assum I am interested to find other peoples ideas on my present situation regarding a renewal of a lease for our PPOR in Cairns. The house has been continually leased, through a PM, to the same tenants while we have been living overseas. The lease


Hubby lost job 6 months ago (hence haven't visited this site for that long because lost hope of more investing). Anyway he is receing workers compensation of $470 b/t per week while studying this year to hopefully begin full time work again next year. I earn 260 p/w before tax. Also recieve approx $140 pw for family benefits but i NEVER take this into account.
I am hoping someone can offer a glimmer of hope that we may be able to keep on investing.

Current situation
PPOR
Current Value $295000
Loan $100000
IO Loan

IP
Current Value $ $200000
Loan $196000
Rental Income $195 ( will be increasing to $205 soon)
IO LOan

We had been planning on building 2 units at back of IP at total cost of $300K with rental income of $220 per unit

Financially we would be no "worse" off after completing the units and our equity would increase 100K .

All the calculators i use on the net tell me I can borrow about $150K at most but they don't take equity etc into the equation.

Can I continue investing or do I have to find another income stream?

Cheers Liz  

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In this situation , better to be safe than sorry.

If money is short.

Perhaps get a DA on the IP for the units and sell the lot for some CG? Got to get CG when income is low.

If you develope then you are at greater risk.

What if:

  • rates go up again and again?
  • you cannot rent one?
  • tenant trashes one and/or refuses to pay rent?
  • costs to build are greater?

The highest prioirty should be securing your family and PPOR at thistiem.

If that is a given , then consider my points above and see your Bank.

Lastly, is WC set at that rate or will go down after 6 months like NSW?

Some thoughts, Peter 14.7  

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do you have any savings? I think you should speak to your banker. You would need to borrow 120% to cover the cost of repayments. I think you can reduce the building cost to <$250 also.

Goodluck  

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You may be able to state the family benefit A child benefits as some lenders take this as income as long as the child is younger than 11 years.
Make enquiries into a loc doc loan as the income proof is less stringent.  

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Hi Jusnliz,

Sorry to hear about your Hubby! I'm glad to hear that he's turning a difficult time in to an opportunity to re-skill.

I've done some calculations around your situation. Using a low doc loan you could achieve your aim of construction.

However, I'd suggest that you talk to a mortgage broker to get the full story on the commitment you'd be making. I work it out to be very tight for your family if you decide to take on a construction loan of this size, especially during the construction phase before you have income from the properties.

I say never give up on investing! If you decide that you're not able to go in to another property investment maybe you can look at other opportunities to invest whilst you're waiting for your income situation to improve?

Good Luck, Medine  

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The Future is bright.

Lots of great advice.

Try to work out a 3 to 5 year plan. Consider the DA approach, reduce your non-deductable loan.

When Husband is in work again, his salary and yours can be used with your PPOR equity to fund 4 or 5 neutraly geared properties.

The property market, in general, has been treading water for awhile with a consideral upturn (expected) around the corner (2009).

My story (a snap shot). When a previous business venture went south (lost $2.5m) the good bank came knocking on the door with the default notice and said "this is in your best interest".

The first plan was to save the house (HIA Custom Built award) I had built for the family. Next was to get an income/salary job, then borrrow money against PPOR and start buying IP's.

We now own 7 Ip's and have a considerable amount of equity - this has taken 7 years.

The get rich slow plan works better than the get rich quick one, although it certainly has its up's ....... and down's.

cheers  

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jusnliz said: ↑
I am hoping someone can offer a glimmer of hope that we may be able to keep on investing.

Cheers LizClick to expand...
Maybe the glimmer of hope is staring you straight in the face! Not depending on a pay cheque forces people to get creative in their thinking and that is the first step on the road to financial independence!

Congratulations to your hubby for loosing his j.o.b :D

Now, the next step is to put your TV (idiot box) out with the hard rubbish collection so that there are no external influences from people that want to keep you employed and poor, then start to make some serious money!

Remember working in a job means that there is a ceiling to what salary you can earn and the government takes half of that. Being an investor is unlimited and income is sheltered from tax!  

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Firstly i am sorry to hear about your husbands work and i hope all works out in the future.

One consideration woul dbe to refinance the PPOR to a Shared Equity EFM and release some capital without having to pay for it in monthly repayments.

You could use the released equity to invest and increase your income or to put towards the construction of the new units.

Either way it may be a financial burden off your back which is probably what you need at the moment.  

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