Hi everyone, this is my first post and need some guidance. We bought a property in Bendigo with the idea of renting out . it needed some work. Its taken 3 years yeek and its still not finished to my standard but is certainly rentable. We got a loan that is against our own home thats what the bank offered at the time. We have been paying both homes off . We pay $1900 fortnightly for both loans. I feel like we are going no where should we sell it or or rent it out what????
Would love some advice / thoughts .
Im happy to add any more info to give a clearer financial picture . I would like to be able to get more properties but actully see a return.
Regards Tiggar
Hi Tiggar,
Welcome! Hope you find us a friendly bunch and that we help you out with your issue.
I'm not sure I've understood correctly – could you clarify? Are you saying you bought rental, and that it's been without tenants for 3 years because you have been renovating it the whole time?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi Tiggar
I've read it the same as Jac M – you've been renovating for three years????
If so, it's time to forget what your standards are and get the place into a rentable condition and onto the market.
If you've got an owner occupied loan – focus on getting rid of that debt before you pay off your investment property debt.
To do that, you need to have the investment loan set up as interest only.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You should also consider talking to your accountant about apportioning loans and costs against your own place and the rented property to correctly claim tax deductions. But really, get it rented! If you then decide to sell 6 months down the track you can always sell it with tenants.
Thanks for your replies. Yes unrented for 3 years. To be rentable needs a paint inside where renos done.What does it mean to apportion costs. We borrowed 250 thousand against our own home so not an investment loan. they call it the wealth package but charge us 350 dollars a month to have it . I know we have done this all wrong and its cost us but really I dont know where to start to change things and move forward. Should we refinace our loan so its an investment loan and therefore could negative gear.
Could some suggestions be made on where to go for good advice. Basicaly I would like to sort Bendigo out and then look at other investment opportunities.
regards Tiggar
You should speak to Jacm this is what she does you will not get better advice
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
tiggar wrote:Thanks for your replies. Yes unrented for 3 years. To be rentable needs a paint inside where renos done.What does it mean to apportion costs. We borrowed 250 thousand against our own home so not an investment loan. they call it the wealth package but charge us 350 dollars a month to have it . I know we have done this all wrong and its cost us but really I dont know where to start to change things and move forward. Should we refinace our loan so its an investment loan and therefore could negative gear.Could some suggestions be made on where to go for good advice. Basicaly I would like to sort Bendigo out and then look at other investment opportunities.
regards Tiggar
Hi Tiggar
You need to get that property on the market for rent.
As for the finance structure, best to consult a professional that deals with this on a daily basis. Can be a broker/banker providing they know their stuff.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Tiggar
Feel free to drop me a Private Message by clicking on the "Send PM" link on the left inside this post box. Happy to have a quick chat to you on the phone to understand the issue and point you in the right direction. Remember to include a contact phone number in the PM if you would like to do that.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Why did it take you 3 years to renovate? What problem did you encounter?
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi Tiggar
It sounds like this property needs to start 'earning its keep'
We have a process we call negative2positive that involves selling the property with vendor finance. This normally has the effect of locking in your capital gain and generating positive cash flow. An outline of what's involved is available at http://www.negative2positive.com.au
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
JacM wrote:Hi TiggarFeel free to drop me a Private Message by clicking on the "Send PM" link on the left inside this post box. Happy to have a quick chat to you on the phone to understand the issue and point you in the right direction. Remember to include a contact phone number in the PM if you would like to do that.
I'd be taking Jac up on her offer.
She's a fantastic contributor to the forum and clearly knows her stuff.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Shahin,
It took this long as we at first decided to do it ourselves. The house is an 1860s miners cottage it was i bad condition . Needed re stumping, floors done, 2 bedrooms gutted receilinged ,new walls new windows new front verandah. Plus it was under a potential Heritage title listing not told this by solicitor who did all checks before buying . We were told we had to be careful by the council what we did. It is now a listed property.
We also looked at extending and had plans drawn up but the cost was too much. Time also ran away with us . We would visit for a weekend do a few things and time passed. Have to say ended up my job as I work part time to husbands full time job. It was and still is stressful so cannt wait to learn what to do to get out of this mess lol.
regards Tiggar
Yes I presumed there was a bit more too it than met the eye. Heritage listing hurdles. Tiggar I have responded to your PM – I'll give you a call tomorrow and give you a hand with how to navigate your way through to the light at the end of the tunnel
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi Tiggar
Firstly welcome to the forum and i hope you enjoy your time with us.
Sorry to come in late in the post but i think the snow here in the UK has slowed down my internet connection.
Thankfully i am leaving today so will be back in the warm shortly.
I had to read your post a couple of times as i couldn't believe what I was reading.
3 Years is ridiculous to even if it 19th Century and i would definitely listen to any suggestions JacM offers as she is a Queen when it comes to renovation.
On the finance side i am not totally convinced that your loan has been set up correctly (maybe suitable for the Bank but not for you the investor) and this might need tweeking to ensure you are maximising your deductions.
Also be interested to see what your Tax Returns look like as i am not sure you are fully claiming what you should.
I think i would be getting some Professional advice allround so that you can start going forward and not backward anymore.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
