All Topics / The Treasure Chest / What should I do with a home of $400K

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  • Profile photo of poochipoochi
    Member
    @poochi
    Join Date: 2003
    Post Count: 11

    I do not owe a cent on the house and am currently unemployed. I am thinking of doing some PI in some +ve CF property outside Sydney. However am having difficulty getting loan due to my current status. I have considered selling and used the proceed to do some PI. Rent and keep buying +ve CF IP. What other options can any of you suggest based on the above. Are there other more flexible mortgage by other providers. Actually quite suprise that the eqity on my home means nothing to the big 4 banks. Any suggestion welcome!! Thanks!

    Profile photo of NathanNathan
    Member
    @nathan
    Join Date: 2002
    Post Count: 77

    Hi,

    Lenders look at two main things when it comes to approving a loan. 1. Equity/ Deposit. 2. Capacity.

    You may have money/ assets /equity in abundence, but if you cannot show that you are capable of repaying the loan, you will struggle.

    Do you have any other sources of income other than unemployment benefits?

    There are more flexibile loans out there/ and more flexible lenders, but be wary of the position that you may be in if you run into a long vacancy periods, a rise in interest rates etc.

    cheers,

    Nathan.[:)]

    Profile photo of hilaryhilary
    Member
    @hilary
    Join Date: 2002
    Post Count: 146

    Have another go at your own bank first, but put togather a professional presentation showing how you intend to make an income. Show them what research you’ve done – find some property first then get info off the net from the Australian Bureau of Stat’s showing the growth for that area, check with real estates getiing written rental info about vacancy rates, anything about development in the area.
    BUT………don’t wait for them to say yes or no – go to a mortgage broker and get them working for you at the same time.
    Good luck…..and don’t give up. Keep us posted as to how it turns out for you.

    Profile photo of fulloutfullout
    Member
    @fullout
    Join Date: 2003
    Post Count: 233

    One thing you could do is, turn your house into a Quick Cash deal. Do some reno on your existing house (if it needs it) and sell it off at good price.
    Make a good profit out of it.
    And then, maybe you can have the cashflow to buy positive income properties or some wraps.
    What do u think?

    Profile photo of MathewMathew
    Participant
    @matymathew
    Join Date: 2003
    Post Count: 41

    Hi Poochi,

    Have you tried to refinance your home or have you tried to get a new loan using your home as equity?

    An option for you might be to refinance your home and use the money to become a money partner for an investor.

    There would be lots of investors out there (like me) who would be happy to pay you interest on your money or share profits with you for future projects.

    Cash rich investors often use this method to gain some cashflow or part ownership of properties.

    This is just an idea for you and you need to consider your own personal situation before making any decisions. However I would be happy to discuss possibilities with you should you want to look at this option.

    Cheers,

    Matt.

    Profile photo of poochipoochi
    Member
    @poochi
    Join Date: 2003
    Post Count: 11

    I think I will be selling and rent….since it is cheaper to rent at the moment. At the same time keep a look out on some good property or wait until this market drops. I think I wiil be creating a company to run my show cos I am sick of paying taxes….more room to expense off everything under the sun……I worked all these years and seemed to have paid almost 500K in taxes for nothing….. Time to think outside the square and I am ready now to take it easy and retire slowly. I wonder how many are still working for someone else in this forum. I think time to take the courage and go it alone with all the knowledge of life. Any more suggestion would be welcome…yo can say I have Cash but not the flow yet!!

    Profile photo of OPMOPM
    Member
    @opm
    Join Date: 2003
    Post Count: 110

    Go to:
    http://www.somersoft.com/forums/

    and do a search for “Steve Navra” and/or “cashbonds”.

    They are ideal for someone in your situation who is asset rich but cash poor.

    If you leave in Melbourne and are quick enough, you may be able to book into Steve’s weekend workshop which is highly recommended and all will be revealed to you. It will be the most eye opening revelation, that you’ll seek me out to give me a huge thank you! [:D]

    Don’t sell the house until you see uncle Steve otherwise you will be regretting it soooo much.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Poochi

    Don’t sell.Think about all those fees, and then you have to pay rent with after tax dollars. This is you only tax free asset.

    You could get a LOW DOC loan easily. This is where you tell the bank what your income is and don’t need to provide proof.

    There are also pure asset lends where the lender does not care about income. They will lend a percentage of the value of a property. You can get up to 85% of the value. (You can contact me below for furhter info.)

    [email protected]

    Terryw
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of fulloutfullout
    Member
    @fullout
    Join Date: 2003
    Post Count: 233

    yup poochi
    when i suggest the option of selling, i forgot to mention, a quick cash property also has another strategy other than selling it after u do improvements on it. You can reno and refinance and the euqity would become your ‘quick cash”.

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