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Thanks Paul, I appreciate your help!
I found a lot of people were very cagey about it when I talked to them about how they normally went about it .
Vanessa
Its located in Victoria
Does anyone know of an insurance broker that can help me? How does everyone else arrange their insurance or am I asking too much of a sticky question seeing no one else has replied so far.
Thanks for your reply Mark. I'm glad that you have had a positive experience and it seems we might have a good one here too.
I talked to my solicitor who suggested that I put the partner with the part 9 as a guarantor to circumvent any problems refinancing down the track. I use the 35% rule as well and they are definately well below including paying off the Part 9. They will be able to pay still if the interest rates go up to 9%.
They declared it straight up when I met them and they were very worried about it as it has caused them to be rejected in the past.
They have now on our advice, started up a special account where they are putting aside $30 a week and any bonuses so that not only are they are comfortable with paying their payments to us and at the same time are ready for any rate rise to 10%. they cannot withdraw from that account without going through a lot of paperwork. so that will set them up.
We will probably be signing off sometime this week as they are seeing their solicitor this week and we hope it will be a win win for everyone.
Vanessa
Thanks for the advice people. Particularly Derek. Yes its been very problematic with the agent in particular. I think that is the biggest problem. We will definately agree to put the tenant in and re-evaluate the situation. We are doing wrapping in Victoria as well as the buy and hold strategy. We currently need to free up some money and selling this would be an option to start another wrap which would be more profitable in the short term as a way to increase our available capital. So I’m very close to putting it on the market and see how it goes. I think it will sell well with a tenant already in place.
potential rent on the house is around $165-170/month more if we update the house a little. if the bungalow is serviceable, we plan to do it up put a fence between the house and the bungalow (which is attached to the garage) and rent it out for $110 per month. Our house is worth $370K (conservative estimate) and our mortgage is $250K with no other liabilities. I’ve been doing the sums and am not sure if its ok or not. We hope to subdevide the land before we sell it when the market is right.
