Hi everyone,
Fantastic website! Just joined today. My mother and I have inherited a one million dollar property in Hunters Hill, Syd (under Mother’s name). Huge land, small house needs reno. Currently renting $490/wk which pays for the place we’re renting in Melbourne (sharing with my partner and daughter). When we return to Syd (in 12 months), we’ll need seperate places to live so we can either sell the property and buy 2 outright to live in (downgrade big time) or my partner and I can stay in the property we own and I’d then have to borrow equity to buy my mother a small unit. Obviously if I sell, then no one has to pay rent or repayments and we can start searching for positive cashflows. If we stay in our place, I’ll have to make payments on a 300k unit for my mother, essentially without a tennant to help with payments. BTW, we already have a 50k line of credit on the property for personal debt and have no savings. Just read Steve’s first book (0-130 props) so still learning. What would you do?
Thanks
I suggest that you sell the property and buy 1 outright to live in for your mom. You look for a rental and invest the leftover money into an IP.
This gives you more money to work with, because you can only draw against 80% of your property. And as you do not have a huge emotional attachment to it, you are a lot better off. Read Steve’s book 2 ($1,000,00 in property in one year) where he describes a couple that did a similar thing.
However before you sell make sure to learn what improvements would make you an additional profit.[blink][strum]
so let me get this straight.
your mother inherits a $1m property. you wont share, and wont split the $$$ cos that would be a “downgrade big time”. yet, you are quite happy to move your mother into a “small unit”. are you really that greedy and selfish? seems like you are ripping off your own mother!!! and you want our help to fleece her? oh by the way, its CHRISTMAS……..the time for giving!!! (not taking)
you are renting, yet not only do you have no money to your name, but have 50k debt to boot. reality check!!! beggars cant be choosers! downgrading from $1m house to $700k, oh you poor thing, lets cry you a river.
what would I do?
well I would ask my mother if she would allow me to live with her in HER $1m house. If no, then tough biccies.
http://www.posigear.8k.com
Positive Geared Share InvestingI think it is unfair to hack into somebody that is just trying to understand the basic principle’s involved in property investing.
It would certainly help to understand more about your situation, and I would suggest that you get some expert advise. It would probably be good to set up a family trust that owns all properties.
Check out how much does your mom want to be involved in all this? After all it looks like her money/equity is on the line.[wink2]Hi as the property has cost nothing and you say there is plenty of land have you considered building another home on the block and everyone can live happily ever after just a thought
Wayne Skewes
Mortgage Broker
Email [email protected]
http://www.eaussie.com.au/Mortgages/Aussie_Mortgage_Adviser.asp?ContentID=852280
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service I come to you!Thanks for your advice. Appreciate it.
Except for the person that has no idea and reckons I’m trying to rip my mother off. You really should ask about our situation first. You see, she wants a studio and she wants us to have a house. There is so much more to it (which is none of your business) but you are showing your ignorance by making those comments. How dare you insult someone like that. You are a disgrace!
Anyway, back to the nice people offering advice….Actually, I am attached to the house since I grew up there. That’s the only reason I don’t want to leave if possible.
Good point Wanelad,
We are allowed to make the house bigger as long as the original structure is joined to the renovation. It would have been nice to add another place seperate at the back but the council won’t allow that. And anyway, my Mother doesn’t want to live there. She wants something tiny and easy to maintain.
Worst house in the best street? I’m curious about the rest of the neighbourhood.
Hunter’s Hill ……………. starting price for a fibro shack …… $1m. Very nice area!!! Not a bad place to inherit a property.
Yes, it’s not a fibro shack but it’s only slightly better.
At this stage we’re thinking about not selling it and accessing the available 275k equity which can be used simply as deposits on maybe 3-4 IP’s up to the value of 1.1 million.
I could rent a small/cheap unit, my Mother (who’s name it is under with me) could live in one of the nice new IP’s which the rent of Hunters Hill ($490/wk )would cover.
That would mean I cover my rent plus the interest only repayments on the other IP’s (combination of +ve CF and buy and hold’s).
We’d love to live in the Hunters Hill property but it’s not really financially smart at the moment.
Well that’s what one financial adviser suggested anyway.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
