Hi Derek

Yes I have been lurking around the forums for awhile now, doing heaps of reading, there is so much to be learnt here!

I did have a think about the PAYG form but I still have my heart set on selling my IP in the next couple of months so didn't think I would worry about it, seeing as I have nothing else to claim other than my house.

I really appreciated the offer to take the time out of your day and help me on the phone to fill it out though, thank you

Kirsty

Hi all,

Just thought I would give you a bit of an update on my situation.

Thanks to everyone in here who gave me advice in particular The Freckle, Shahin and Derek as it has helped me alot. I have managed to reduce my weekly expenditure by around $110 a week doing a few of the things suggested to me..

– Changing my loan to IO (save approx $40 a week)

– Getting another housemate to share rent with me (save approx $50 a week)

– Gave up the gym (save approx $20 a week)

Somehow I have even actually managed to save around a grand since I was last on here, for any unexpected costs which may occur!

So thanks guys, your help was much appreciated.

Kirsty

Hi Derek,

Yes some huge mistakes have been made on my part. I jumped in way too quickly with little thought and guidance unfortunately. But that's the way things are I guess and I have to live with it. 

Yes in the meantime I will change my loan to IO, as well as try to save to make up some of the difference when I sell. 

Like I said to Shahin earlier I really appreciate the time you have taken to review my situation and write to me on this forum. 

Cheers,

Kirsty

Nah no credit cards, luckily this is something I have never allowed myself. 

Unfortunately the $133,000 is fixed at 6.1% for another 18 months. The $44,000 part is variable though and sits about 5.8% I think.

Do you also think going IO is the way to go?

If I was to sell, how do I possibly make up the difference between what I would get for the place and the loan payout figure (probably $15,000)? Other than saving the money is there a way?

thanks

kirsty 

Actually sorry Shahin I forgot that the $7,000 FHOG was used to pay out my personal loan, so then I was left with $175,000 for the mortgage and all other fees like  stamp duty, conveyancing, broker fees etc. 

Hi Shahin, 

i would think somewhere between $165,000 and $170,000 and yes I still owe $175,000

cheers

kirsty

Hi Derek,

1. OK thanks, I will look into that straight away.

2. I bought the property with my father going guarantor, which was why I was able to purchase so much with no deposit. I have no idea why the person on the other end of the phone at Suncorp said my LVR was 80%, he was just looking very quickly though and I just think he has made a mistake when he said this. He wasn't any sort of broker, just someone who answered my call on the other end.

3. I thought I was, but probably looking at some aspects I am not really as much as someone in my financial position should be. I don't spend alot of money on things like clothes, social life etc but just things like buying lunch and going out for tea. 

4. Thanks, I will take a look into those options. 

Thanks about my dog, is a big wake up call for myself when I know if I could have come up with the money he may have been able to be saved.

Hi Shahin,

The reasoning behind the car loan was just that mine probably won't last any longer than another 6 months, I realise that it isn't ideal to add more debt, I just don't know how else I will be able to afford a car once the time comes that mine gives up. I don't have 10 cents to rub together really, even had to borrow $700 from a friend to have my dog put down 2 days ago, that's how tight things really are

I am a little unsure of what you mean by cross securitised but property 1 is solely owned by me and nothing to do with my partner who owns property 2. They are completely separate. We were just thinking of selling one and going in on the other one together, which is what my original post was about.

Thank you

Kirsty

Hi Shahin,

thanks for your reply. One option the bank discussed with me was taking out a car loan (I do need a new one) of say $25,000, buying a car worth $10,000 and using the rest to pay out the home loan.  They said this would then be a secured loan and at the lower rate of 8%. Have you ever heard of this?

cheers,

kirsty

Hi Derek,

Thanks for all the advice. I will get in contact with my broker and see what they say regarding going interest only on my loan. I believe my interest rate is 6.3% so not far off the 6 you budgeted on. 

But like you said, whether or not it is all actually worthwhile is another question. Sometimes I think I would rather just cut my losses and sell and pay back the bank on a personal loan and start fresh in another couple of years. My boyfriend is in a fair bit of a better situation than myself with his place but being a uni student does make it tight also. He seems to be against interest only loans. 

I see you are in Perth but you wouldn't know any financial advisors in adelaide would you? Do you think it would help us to see one?

Thanks again for taking the time to help me. 

Kirsty