Hi (again) Neil, 

you have been very broad-minded in  your reaction to the various responses…mine included. (Good on you). I didn't really think it likely that you'd seriously consider down-sizing your home: it was just a consideration possibly worth running by you.

All the best

Wilrose 

Hi Sharif,

I would be intrigued to confirm that you could buy anything at these prices that would interest FEA to lease at the rates mentioned, without substantial adjustments for the offsets required via management plans for gullies and watercourses etc.  In addition, Tassie is quite expensive by mainland standards today, so any land at $2000 per acre is highly likely to be entirely unsuitable in so far as the plantation company's needs are: eg too rocky, low rainfall location, too much waste/offset areas etc. The land they now hold freehold from the past few years of activity (many thanks to the gullible city taxpayers (who've funded all this)  who only hold the title to the "crop" (which has a very dubious future value) is of a quality that it would fetch $5 to $6k per acre today. Point being: $2k per acre land is very inferior stuff, and probably not suited to them in any meaningful way. Be very Careful!!

Wilrose

Wayne…you write, "interesting comments"…………in what way?

Wilrose

To further this discussion, I would be interested in forumites comments etc on a scenario we are working through:

Commercial property advertised for sale by normal method…..price excessive at $1.65m. Realistic Price range probably $1.0 to $1.2m. Elderly Vendor is persuaded to switch to rival agency after only four weeks (even though interest being shown by a number of parties). New agent sweet talked Vendor with promise of much better outcome…….via the auction method. The cunning Sod books auction date in 4 weeks. I wonder how many potential purchasers are knocked out because of there being insufficient time to get all one’s ducks in a row as regards (for example) valuations and refinancing of other properties to tap into equity in order to flush out deposit funds in preparation for the deal.

Agent fairly loose in presenting rental details accurately…..and arrogant when discrepancies brought to his attention. Couldn’t care a toss.

Agent’s suggested solution to resolve logistics issues that we face as to timing……..put an offer in writing, if the auction comes up short, our offer could be brought into play. My instincts tell me this would just be a weapon to be used by the Agent at the point of the highest bid falling short of our offer….not to benefit us, but to get the bidder over the line for a clean deal.

Am I too cynical?

Are there any clever suggestions as to other strategies that might be considered here?

warm regards

Wilrose[thumbsupanim]

The views expressed thus far seem to cover the spectrum, except to add that perhaps some new cars are really a very good option in certain circumstances: eg, In the range of $17500 to $28000 (which will cover 1.6 litre Hyundai to 4 litre Falcon/Commodore, all ex gst) , should you have self employment status and significant taxation bracket, you can benefit from the tax angle, while also driving in a highly reliable, fully warranted, (including full roadside assist), up-to-the-minute safety specced vehicle, complete with new everything including tyres and rego…..all adding up to very low operating costs save for the depreciation aspect. Often the costs of owing a much older car are severly underestimated (including the safety issues in relation to airbags, ABS etc.) My experience is that a used vehicle ex govt auctions at about 40km, three years old, ex health department is the soundest strategy. The first driver is usually a person of mature attitude (read “careful operator” ), servicing will usually have been done religiously as required, the “on-road” costs and the GST have to a large extent been forfeited by the first owner and the purchase will be keenly priced to wholesale market values. What could be better? At the end of the day, do you want a vehicle to be reliable, safe, economical and able to blend in……….leading to a good long period of trouble free ownership, thereby saving alot of time (money) messing about with repairs, more frequent hassles with changeovers, late and missed appointments, embarrassing breakdowns etc, etc.

Each one must do their own assessment for their own respective situation…one size certainly wont fit all.

warm regards

wilrose[thumbsupanim]

If you are doing heaps of kids sports stuff or carting about reno tools/materials, then certainly a “knockabout” is the go.

Hi Chaps……just for clarity, is a HDT a Hybrid Discretionary Trust? If so, how does this fit into the scheme of things, and are the benefits available thru any other avenue?

warm regards

wilorse[thumbsupanim]

aha Nobleone…..(interesting nom de plume!!) Fair comment ( up to a point)…………….but isn’t the forum going to function best where whilst you seek help and ideas, you offer it in return to those less (or differently) experienced/educated than yourself? For those who read your post, it is necessary that they clearly understand your issues if they are going to understand the replies and responses. Of course, you are free to do as you see fit.

With greater understanding of your situation, for what it’s worth, it would seem to me that you have far too much debt, way too little equity, and too little income at the present point in time. Just because the bank has provided this facility doesn’t mean that you have to apply it……..you could simply consider it principle paid down on your home. (PPOR). Alternatively, perhaps you could seek ways to enhance your income. Failing that you may just need to allow time to have an effect on your equity, though admittedly this could be slowish in the present market.

with respect and kindest regards,

wilrose[thumbsupanim]

ps……as you may deduce, all is now crystal clear for me re the acronyms…………though possibly some out there may remain uncertain.

so sorry Cherry Pro……..i did not read your post properly: I see now that you have negative equity. This would swing me back to the earlier advice posted by others in some ways. On the one hand, you could sell and then set about paying off the outstanding debt….say $9k per year in interest, and principal payments as extra….how long this would take you might calculate, and what relief/distress effects would you experience: or carry on with the current strategy…….perhaps 7 years ( at say 6% average growth per annum ) to recover the capital value ( to $470k) plus another 2 years to recover your additional investment in negativegearing interest costs over this period. Not the best situation, but one that you will overcome I’m sure. (will the average growth be 6%? perhaps less?)

all the best (again)

wilrose[thumbsupanim]

I see no responses thus far Nobleone……perhaps if you were to breakdown the acronyms….Certainly I’m unsure what you’re on about with respect to a few?

wilrose[thumbsupanim]

Hi Folks,

this is my first post….and largley prompted by response suggesting producing a bogus reference. Tut Tut!

Credibility is critical and should the agent or property owner follow thru with a check then you just might find yourself very quickly despatched to the blacklisted file.

I would endorse the other recommendations such as recruiting the assistance of an older family member or friend to visit the interview with you, (once again neat appearance, conservative would be best), a reference from your Employer and the offer of additional bond and rental in advance would be quite persuasive.

Best luck, honesty is the go..

W [thumbsupanim]