The problems you have encountered are the reasons it is cheap. But you will be glad you moved on in the long run.

Sare, don’t give up or give in. You sound so down about things. Ok, yes, get legal advice, but maybe you need to sit on this a while and see how things go. You sound like you need a pick me up or something. The market might be poor but all is not in vain. Did you buy off the plan? Albion is close to the city, my first purchase was Ascot. Why are you paying mortgage AND rent? Why isn’t he renting your share off you since he is “using” your half? Give yourself some time. Brisbane might be down- but you still have $24K of equity and this does not include any improvements in the market. Don’t be so hard on yourself. Go out, have a good time, forget him- THEN lets think about the mortgage situation! What do you mean compound interest? Are you saying the mortgage is not being paid?
Call my friend Jodie- Broker on 0431229929 and get some feedback on the loan side of things.
Well this is NOT a dear “Dorothy Dicks” web site- but look on the bright side- wait for dust to settle – just don’t be so hard on yourself- he;s only a boy. There are plenty more of those and plenty more property opportunities out there.
But why IS he So keen to get this settled? And what of the end of the FHOG 12months? What has that got to do with it?
Well, YES one thing IS for sure- the market WILL improve- history shows us it always does.
Take your legal advice, Jodie’s advice and weigh everything up.
For my way of thinking – you need to get something out of this- not just walk away from it all.

Xdrew- fast cars and loose women- we should be allowed to enjoy life too!
Maybe just “women” and fast cars though.

Bluegrass and Jamie M- I see a lot of different strategies for investing in property- some people do it for negative gear and some for returns. It is best that someone do what is right for them- not because you have a bias due to the product you sell. IN this case, the young man has a a lot of income and a lot of tax probably as a result. Negative gearing should be a serious option for this young man- but it ALL should be viewed in light of WHAT IS RIGHT FOR HIM.
Xdrew, I see nothing wrong with loose women and fast cars!!

Scott and Anthony et al- cooling off in Victoria is 3 days. You can cool off in 3 days- that is you can end the contract in 3 days using the cooling off period and pay 1% or it might be 2% of the price for no reason other than you just decided not to go ahead. HOWEVER, Anthony IS right – as per Victoria. You can end a contract within the “subject to ..” clauses up until the conditional period ends WITH NO PAYMENT. That is standard contract law- you have an agreement “subject to” certain conditions. If those conditions are not met- ie building and finance, then you can effectively end the contract. It is different in NSW because as I understand it, you have to get a building and pest inspection completed BEFORE you make an offer.
I’d suggest that yes, this property is causing too much concern from the outset. As a first home buyer, look for something that is simpler, less issues. The cost of ending the contract now, is far less than the stress and headaches this property has caused you. You could go ahead and use it as a learning experience but this one is possibly a “non-cost effective” learning experience, one that once in, you cant walk away from for a loooong time. Do you want to be tied into this? And what if you want to sell? You will have the same issues this owner is having in selling this time. Do you want that?
As far as the agent is concerned- an agent is liable to tell you if they know anything. The don’t just “tell you anything to sell”. The agent has a duty of care to tell you what they know. The agent is an agent for the vendor- he will only disclose what the vendor tells him. An agent is qualified to sell- not to advise you on building aspects and whether it is sound or not. Dont listen to the agent – not because they “tell you anything” but because you need to listen to someone who is qualified to give you the advice on the building structure. That is not the agent.

Yes, that is what I was trying to say as Sonya Luke and catalyst are saying- dont just give it to him. Yes, as Luke says, tell him you want to sell and do the calcs as to how much will be left. Might be nothing as I understand it, you have not held this place long? So after agents fees etc might not be much but he gets same. Stand firm. Hang tough. Better to sell to him in the end but AT FAIR AND REASONABLE PRICE.

Hi Sare,
I am not sure why this should affect your credit rating. If you have paid up every time and there is no defaults.
My question is: Why would you walk away with nothing? If you paid 50-50? You should at least get back the $20K. He gets to get the value of your input PLUS your share of the FHOG PLUS ability to capitalise on future gains.
Yes, I was a real estate agent- Scott is probably right- if you go to an agent- they will smell gloom and doom. It is a good way to get a free appraisal value though. A relationship split is the best type of sale you can have- they usually sell easily and well below market value.
You could tell him to want to sell it and realise the value.
Best place for you to start is not with a planner or broker or real estate agent- contact Legal Aid and get some advice. Dont settle for too little.
You are giving up future gains to start again. Although dont hang on too long- best get going and move on.
Good luck.

Brilliant! Thanks to both of you. i will send an email.
Cheers

Yes, poor choice of words perhaps.
I still recommend Tony Melvins Red to Black- makes all these suggestions.
Yes, the cosmos delivers……………

Well this all seems like good advice from Terry and Michael. I think Justin you are referring to the Likes of “My Budget” and there are others out there who deal with banks for you. I looked into this as a way of having someone else do my budgeting – and book work for me. There are others – Debt Assist. I could not justify the cost – something like $1000 a month to do this for me. While Richard says “Hate to say Justin you wont find anyone who pays the card off for you and you then pay you a fee”- this is what these 2 do. For me, I read Tony Melvin’s “From Red to Black” this can also be helpful. Worth the investment. Tony suggests the strategies that Terry and Richard do. I like the $0 balance transfer. It does help and it it works- why not. And Richards further comment: “but you might find someone who charges a lower interest rate on balance transfers and that could help you” if it works- do it.