Hi all!
Stumbled across this fabulous site and am hoping someone can help with my dilemma.I’m a single mum on a Centrelink benefit. Moved from central coast NSW to Northern NSW where I purchased a villa 6 mths ago. My mother lent me the money (interest free). It is my first home and I received the $7,000 grant & repay her weekly.
Due to personal reasons I now have to move back to the central coast immediately & permanently. Do I sell, transfer/gift into my mums name, or rent out?
I will be forced to rent a property on the central coast, am on a minimal wage (casual employment) & feel I may need to retain Centrelink benefit for time being.
Property here has also slumped, I paid 247k and there is now a neighbouring villa for sale 250k. Rental returns approx $240 pw (all of which would be used to repay my mum & body corp fees)
I have an appointment with an accountant in 2wks but at this stage any thoughts are appreciated.
Am prepared to work hard/sacrifice to make a better future for myself/kids.Many thanks [thumbsupanim]
Hi everyone,
I am also new to this forum and the whole investing game, but from what I have researched so far, I feel you (betterlife) would be best to try and hang onto the property you already have. Estatblish yourself again on the central coast (great place to live, by the way) in a rental property, before you make any decissions on your villa, if in doubt wait, and formulate a plan once you have settled, and have clearer picture of your finances.All the best with the move
ATHENA.[angel]Hi betterlife, welcome to the forum
I agree with Athena that you probably shouldn’t make any decisions quickly. If you sell for $250K you are looking at a big loss when taking into account purchase/selling costs etc.
If you can rent it out for enough to keep paying your ‘loan’ off, then do that for a bit. If you pay the same amount of rent where you are going to live, then you are probably in the same position as if you were staying in your place. If you pay less for rent – you are in front[biggrin].
But either way, it’ll probably give you breathing space to make a decision. Who knows, you might decide that having an IP is great.
Regarding Centrelink, Marc1 has made some good posts about benefits and limits and stuff – I think he works there and knows who to talk to. Maybe contact him or have a look for some of his old posts before making final decision.
Cheers
MelMany thanks Athena & Melbear. Thought the same pretty much myself.
Love the site and will keep learning from it I’m sure!!It is my first home and I received the $7,000 grant & repay her weekly.
Betterlife, what will happen to the first homeowners grant?
I’m not sure about the timeframe, but don’t you have to live in your PPOR for a certain amount of time, say 6 or 12 months, for you to be able to benefit from this grant?
Do others know about the exact timeframe?6 months starting within the first 12 months.
Is a little different in each state. Check yours by following the links at:
http://www.mortgagehunter.com.au/first-home-owner-grant.html
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I would rent out the property, but would also convert the loan to Interest Only to minimize any extra $ that may need to come out of your own pocket to meet the loan payments. Good luck.
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