Very good ideas LifeX.

Cazza I don’t know if you have settled on the unit that you have just sold in Homebush Bay but if not and there is some cash left after discharging the loan etc. then put it into an offset account tied to the loan on your home in Lake Macquarie.

At the moment this is non tax deductable debt. I suggest putting it into an offset account rather than paying it down because at one stage you might consider renting out your home for a couple of years rather than selling it. You could then move the money out of the offset account to maximise your deductible debt for that period.

You can rent out your home for up to 6 years without attracting CGT.

Cheers
Elka

You are posting just fine Cazza.

Heres a few ideas:

Advertise the 2br unit in Homebush for
“$530,000 WITH SPECIAL 4% FINANCE (for first year).” Just get agent to whack a 4% financing bit in the ad. Make sure it stands out.

The buyer will still get his normal financing from bank which would be about 7.5% at the moment.
He may borrow 80% LVR which would be a loan of $424,000.
Interest Repayments of $611 approx per week.BUT>>>> because you are offering that the buyer will only be paying 4% in the first year, his repayments will drop to $326 approx per week.!!!! You will sell this QUICK!!

All it will cost you is 3.5% of $424000 = $14840. So you are effectively getting $515,160 for unit..
Simply pay this money into an account at settlement and instruct the buyer to have his loan draw partly out of this for each repayment for 1 year. You just write one cheque which comes from the money you were paid anyway.

ALTERNATIVELY,–

Advertise some of your properties with “No deposit needed”.. And then when a buyer comes to you, that is short on deposit. Simply get a property lawyer to write up a contract whereby the buyer pays you the deposit over a period of time (whatever you are comfortable with and can negotiate).

So one way will get you buyers who want to save $300 bucks a week.

The other way will get you buyers who haven’t quite got a deposit.

Whack these into your advertising. Make sure they REALLY stand out.

GO GO GO

Lifexperience

hi all
couple of things.
first gmh454.
once it winds up in the chase section the guy who is chasing wants it off his desk and closed before it gets any worse and he can be blamed for a bad situation getting worse under his stewardship.
this maybe the case that you have dealt with but is not with the ones that I have dealt with most lender inc the big four want to get out of these problems and if that includes helping to do it they will.
for a bnk its not cheap to chase a loan defaulter and someone has to sign his name to a doc so they will go out if there way to help if you give them a proper formulated business plan of how you are going to get out of your debt.
I am talking with a couple at this moment an=bout a couple of commercials that are abit larger then this amount and they do wish to cap interest etc to get out of the problem.
there is a couple of thing that need to be understood a problem like this first goes to adminisration and then liquidation and if this is in liquidation then yes it is very hard to get it back from there.
you need tyo talk to the lender before liquidation and then you can get a deal together.
the other issue is how do lenders get into this state for me is simple.
greed
the margins have been squeezed with lenders as there loan books are squashed by the rams and aussie’s of this world so they lend on products that they shouldn’t and to people the shouldn’t.
and just like the casino if you play the higher risk games your profit goes up but so does your exposure to risk and thats what this is.
this is not an attack at this poster but is a general attack just because a person has 5 or ten posi properties all over the country doesn’t automatically mean they know what they are doing it means they have found posi properties.
when every you are investing you must know
your risk
your profit or potential profit
your cash flow
and most important if this goes pear shaped your exit structure.
I have spoken to people that have 30 and 40 houses and they tell me they don’t know what they are doing except just keep buying posi property
thats great but if a problem occurs that may well unravell to a heap of problems.
and all that good work comes tumbling down.
its not hard to buy property you could buy some in your dogs name, what is hard is keeping it
holding and profitting from it.

here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wish

Instead of dropping the prices. You need to make it EASIER for someone to buy.

Try offering a deal with some finance (ie: you vendor finance part of the sale to make it easier for them if they have no deposit. You offer a 2nd Mortgage)

Or you could offer to discount their bank loan to 4 or 5 % for the first year. (just put some of the sale money in a bank account to pay the difference between their bank loan and the rate you offer) This would drop their initial weekly payments by a few hundred bucks a week.

Try wrapping them.

Or you could do a rent to buy deal.

You could even try HIRING a wrapper or savvy investor (many on this site) to set up these deals for you.

Can you describe your situation in more detail?

gotta go,,,,, good luck!

[bulb][biggrin][bulb]

Lifexperience