Hi everyone
This is my my first time on the forum. This week has been a shocker in one respect, and an eye opener in another.
Firstly I find myself redundant!! With 30 mins notice I find myself leaving my office of 7 years with a cheque for 9 months pay in my pocket. What do I do now? I picked up Steve McKnight’s new book $1m Property in One Year – and thought what better time to get serious about my investments, why not replace my income with income from property investments?
My next thought sent me back down the other side of the roller coaster of this week’s emotions. Who will provide me with finance now that I am unemployed? My husband works but is blissfully uninterested in my property pursuits, but will go along with whatever I decide.
Steve would say find the deal and the money would follow, but I am concerned about my unemployed status. Two weeks ago I could have walked out and bought two properties with no problem with finance.
Does anyone have any thoughts on how this abrupt change in my employment status is going to affect my ability to secure finance?
Cheers
DiannecThe first thing that comes to mind is at least get a free initial consultation with a financial planner to see what they can do for you.
Second thing: Finance can be gotten if your husband works full time and you can show you have spare income and enough equity (your redundancy package for example).
Work isn’t hard to find if you don’t mind finding any sort of work. I think that stands regardless of age or background. So if you need extra income to get rolling I’m sure you can find something to do.
I’d also recommend you pay off any high interest debt you have (credit cards, car loans etc…) $1 off a 12% loan is like investing at 12% return [biggrin] to an extent anyway.
firstly good luck with your future job prospects.
we are a single income earning family and just this week buy our 3rd property. [biggrin][biggrin] i certainly dont consider myself to be on top dollar either.
you make no mention as to your current property arrangements; do you currently own? renting? etc. if your husband works full time then surely serviceability of the loan shouldnt be an issue, providing he is on a decent wage?
personally though i would have thought that your decision to go full-time into pi would need the support (read interest) of your partner?
i hope it all works out for you. i certainly don’t doubt that if you do have some equity in your home and if hubby has a ft job then you should at least look into a property investment.
Dependant on equity why not become a Full Time Investor and enjoy the cash flow as income.
Obtaining finance will not be a problem.
I decided 10 years ago to do just that and now with 172 properties all wrapped or under Vendor Finance find myself comfortable.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Take your time – don’t be in a huge rush to spend that money!
Do lots of research and planning.
All the best,
Simon Macks
Finance Broker
[email protected]
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.
Dianne,
Look on the upside, just think of how much time you now have to investigate property investing techniques. I beleive that you are streaks ahead of a comparable situation when you would have had all of your valuable diminishing time on this earth consumed with earning a wage. With enough knowledge (start reading) under your belt to be able to persuade your husband to support investing (find and explain all of the upsides and potential freedom that could come from successful investing ) and you may well become a powerful investing duo of wage-earner and full time investor turning that simple wage into many many more dollars.[biggrin]What a huge opportunity….good luck
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Live, Learn and GrowLifexperience
To all of those who replied to my email… thank you. Your positive messages were just what I needed. Even those who were born an eternal optimist, sometimes still need to hear a positive voice instead of the 95% negative’s or fence sitters.
To the questions asked, yes, I have purchased one property, I have equity in both IP and home, and a working partner. I have decided to take this “setback” and turn it into an opportunity to become a full time investor.
Thank you and good luck to all!
Cheers
DiannecD E Cervetto
Dear Diannec
No one can possibly know how you feel when you become redundant. I know as I was in the same situation, I worked for Ansett and woke to find out that I had no job after also 7 years of employment.
It was a terrible for me as at the same time my marriage broke down and I didn’t have anywhere to live. I had the support of friends and family as I tried to get my life back on course.
I was knocked back from a few banks (after gaining temp employment)but that just made me more determined. I finally found a mortgage broker who helped me get into my own townhouse (deposit from redundancy and settlement).
Now I have a better paying job I have since bought another 2 properties (on my own) and met a great guy (now my husband)and together we have purchased a property together.
I found that at the start when the redundancy was first known you look for comfort with other work mates re hashing the whole thing over again and again. This is the same as grieving process. But don’t get pulled down by it all, dust yourself off (you sound like a + person) don’t dwell and move on. There is a big world out there with lots and lots of opportunity.
Good luck
Jenny1
Diannec,
I can simpat with your on redundancy. I was with the Commonwealth bacnk for close to 15 years. They had just put me thru training to support the new stuff coming out and then out of the blue my position was made redundant. Emoitions come and go while dealing with this event in your life. Support from Family and friends is good.
I went on to get a better job and a lot more $$$ and now onto my 2nd property. This is 5 years later and I have found that making me redundat in that job was a turning point to a better life for myself.
You finanial future is totaly up to you as you are at a turning point in your life where you can make a decision on what to do. You need to make an informed choice.
AS you husband is working and you have a payout you should be able to secure finiance with the amount of different loans and brokers out there doing deals.
because you have good deposits then even Low Doc loans are a possible option.
ChrisAll post are IMHO.
Hi Dianne,
If you have enough equity you would be able to borrow against that and also use the rental income from your existing property. Also if your under 65% LVR you will be able to obtain finance without declaring any income. Good luck with your investing career.
Mortgageman
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