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Hi Richard, thanks for the reply!!
Yeah our position at the moment is very tight. Your right it is a lo doc deal and unfortunately we dont have the financials on paper to do anything else at the moment. Our combined income is around $90,000-100,000 net. we are new to the area so my husband is subcontracting to another builder on a monday to friday basis and getting his own jobs usually on weekends at the moment while he builds a name for himself up here. We dont have any savings at the moment and are struggling to pay off credit cards of combined $15,000 and we also have a personal loan of $25,000. The property is jointly owned and we have 3 kids also. When we first started all this our weekly repayments were around 620 per week and now we are struggling to come up with $800 per week!!!
Not really sure where to go from here to make this all work for us!!!It is a ppor . We didnt really overcapitalised but we overspent by borrowing against the house to pay the mortgage and pay for living expenses while we built which we now know was a big mistake (clock it up to inexperience). The house did of course cost more to build than we initially expected but the house in itself is worth more than the construction and land costs.
Our goal was to buy cheaper properties and renovate and sell and make money that way. But we are at a bit of a crossroads at the moment as whether to sell and start fresh or take the gamble that hopefully the property will be worth significantly more in 5 yrs. We have had advice from local realestate agents and valuers that the market up here will stay pretty much the same for the next 3-4 yrs and hopefully start going back up again after that. But given that we will owe another 20k in 5 yrs time instead of actually reducing the amount we owe, i am worried about doing this.
Renting it out is an option i guess as long as the father in law agrees to this, still not too sure off the benefits though can you explain a little more?
For example the mortgage is 700per week we can rent it out for about 400-450 per week and we can rent somewhere for around 350per week.
Were pretty new at this so bear with me!!! Thanks!!!
