Hi,
I’m not exactly an investor, so if my inquiry is inappropriate, I do apologise. You all seem very well mannered and sympathetic.
I’ve noticed in this forum how all your different minds come up with lateral solutions to questions, so I’m hoping that some of you might have some novel insights into my situation.
Briefly,
• I live in Newcastle in a house (fully paid for) which I inherited from my parents.
• I want to move back to Sydney, preferably to the Inner West.
• My house is worth around $240,000.
• I have five cats and one dog (small).
• I earn around $400 per week in a casual, though pretty secure, position, which I have had for the past six months. (Various illnesses and parental caring during the roughly five years prior to this.)From advice I’ve received so far, it would be inadvisable for me to buy in Sydney as the prices are so inflated, and have just hit a plateau.
Plan A: The simplest solution would seem to be to rent out my Newcastle property and rent in Sydney.
Apparently Sydney rents have not kept up with buying prices.
Newcastle real estate is rising in price at a greater percentage at present, so it would seem sensible to keep this property, which is in very good condition, just needing some cosmetic renovations, which I am in the process of doing.
Challenge: I have never encountered a landlord who would accept so many animals.
Plan B: I could look into obtaining a loan and buying in Sydney, perhaps using the equity in my Newcastle house.
Challenges:
As mentioned before, Sydney prices are absurdly inflated.I probably don’t have enough of an income to qualify for a loan.
While I’m sure I could get more work in Sydney when I didn’t have to come home each week to care for my animals, I can’t afford much in repayments.
I would hate to risk losing the Newcastle house, which my parents worked so hard to provide for me.
So, thankyou in advance if you have any observations or advice to offer
I’ve just started seriously looking into this, and it’s very complicated.
I’d also appreciate any information on formulas to calculate the numerical outcomes of various options.
Also, where do I get an avatar?
Cheers, Leigh
Hi Necropolis,
firstly, welcome to the forum!!
I would love to be able to answer your tricky questions but the only one I can answer is where to find an avatar:
Members > My Profile > Edit My Profile
Good luck with your decision. I am sure you will find that with a little help from the many seasoned investors on this site your dilemma will soon become simpler than you think. [8D]
Cheers,
Ali G
Hi Ali G,
Thanks for replying to my post. I was beginning to wonder if anyone would
I’ve chosen DangerMouse as my avatar, as he’s very brave and solves problems by taking decisive action! I hope that rubs off on me
This is the first time I’ve ever posted on a forum. I’ve alreday learned lots by reading the other threads.
Regards, Leigh
ChurchMouse Manufacturing – Industrious and Frugal
Hi Leigh, I see your problem with your pets. What if you got someone to mind you animals whilst you went to Sydney and found a job?
Once a job is secured, you could apply for somewhere to rent, putting a small dog and a cat on the application form.
Then move into the Sydney house with your pets, (the cat had 4 kittens)and rent out the Newcastle house on a periodic rent term of 3mths.
If everything goes pear shaped in Sydney, at least you and you tribe can always move back home.
If you want to get out of a hole, first stop digging.
Having no job is not a barrier to getting a loan.
You could get a ‘no doc’ loan on your Newcastle property to 65% of the LVR = $156,000 approx.
Use this as deposit on a new property in Sydney based on a 65% LVR loan. You could buy something around the $380,000 mark.
But you must be sure you can service these loans. Renting the newcastle one will help.
So you could get a loan if needed. You just have to decide which strategy.
1) Sell Newcastle and purchase in Sydney
2) Keep Newcastle and purchase in Sydney
3) Keep Newcastle and Rent in Sydney
etcI Think Sydney prices are absurd, but I can’t see them comming down (except maybe units). Sydney has show great growth long term in the past and may/probably continue to do so.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Brenda,
Thanks for your advice. Hmmm. This scenario has possibilities… I’ve yet to find anyone reliable to look after my cats though…
I do certainly want to keep this house if possible, being the family home and all, and with what I think will be rising prices here in Newy. And yes, it does feel like a safety net, since I’ve been linked to it for so long.
I could probably do the renting thing with both houses fairly simultaneously. I’d just rather not fib about them – my very large kitens
I’m looking for something like “tiny dilapidated terrace in horrible street, close to burglars, noise and factories – must let/sell immediately”. Just joking of course, but that’s about all I’ll be able to afford.
It’ just the location. This house is lovely – bright, airy, solid, just in the wrong city
Thanks again Brenda,
Regards, Leigh__________________________________________________
ChurchMouse Manufacturing – Industrious and Frugal
Hi Leigh
Usually the aim is to build your portfolio.
Hold onto what you’ve got and make it work for you to accumulate more.
Renting is a loss.
Is 5 cats really a good idea ?
Move to Sydney ?
Why not another property in Newcastle ?
good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
what do you do Leigh, with a solid career path you’ll be able to lots and lots of stuff – with a stable residential base i’d be sorting this out first in order to establish a ‘bankable’ income stream, then go and then run onto the playing field.
might not be too popular in the i want it now world, but hey, it might work for you.
cheers
Brendan Heagney
Mortgage Broker
0438 436383If you don’t ask, the answer is no!!
The Crest,
What kind of a question is
“is 5 cats really a good idea?It appears that Leigh’s animals are a consideration in her decision making process.
I find the question judgmental and unwarranted.
It’s not for any-one to question whether having pets that we love are a “good idea” or not.
The same could be said for a lot of other things,but i will refrain from going there.ANITA
My mother in law went to a financial advisor. The first thing he said was get rid of your 5 pets. I agreed.
Now the place looks and smells much better. She has more time and now her income is better too.
Necropolis,
There’s still cheaper propertties to be found in Sydney. This one (you want dumpy- I’ll show ya dumpy!) was advertised in yesterday’s House liftout in the SMH. Annandale is a decent suburb (inner west), and the suggestion in the article is that this house would go for about 350k. Bidding starts from 300k in the ad below. It’s a renovator’s dream:
I reckon if you have serveral animals, and you want to move… your own PPOR is the way to go.
kay henry
Hi Yack,
Point taken,maybe it’s just a personal thing then.
Personally,i can’t see myself lying on my death bed wondering “if only i’d got rid of my beloved pet’s years ago then i would now own one half of an investment property,or,i would of had a later model car,or what about that pretty dress in the window.”
It’s all a matter of perspective and what we are prepared to do to chase the all-mighty dollar.Each case has it’s own merit and i understand that it may not be practical to keep so many animals.
Does any know where i could farm out the kids?
they’re costing me a bl**dy fortune!
[biggrin]
ANITAI just had a look at that site Kay,
is that for real???
Now i know what you guys mean about Sydney prices being inflated!!!
How do you guys afford to eat over there?
I am truly in shock.
You should see what palatial property you could find in Perth for that price.Yep, I love this city!
ANITA
I guess the main thing here is to work out exactly what your goals are. Why do you want to move to Sydney? Could you live there without getting a job first? Newie seems like a much nicer place to live I reckon!
Getting rid of your pets? I agree with Anita, it would be just like getting rid of your kids!
If you inherited the animals as well as the house, I can tell you from experience, that it’s not an easy decision to make to give the animals away!!!!! How well do you handle guilt?
But, as the others suggest, you could easily use the equity in your PPOR to borrow money to buy in Sydney, but without getting a more permanent job first, I imagine this would be very difficult?????
I repeat my comments above – work out what your goals are. Why would you leave Newie and live in Sydney?
[juggle]
Feefifofum
Anita,
Annandale is really a nice suburb. Location location still works for me (worst house in the best street kind of thing). A reno (if you are the reno type) would see value maintenance.
Some like perth, some like sydney. It depends on what you’re looking for.
kay henry
thecrest
Established Forum Contributor [86 posts]
Posted 25/08/2004, 20:29:49
Hi Leigh
Usually the aim is to build your portfolio.
Hold onto what you’ve got and make it work for you to accumulate more.
Renting is a loss.
Is 5 cats really a good idea ?
Move to Sydney ?
Why not another property in Newcastle ?
good luck
cheers
thecrest• I read Peter Spann’s 0-130 properties last night, so now I’m definitely holding on to my Newcastle home.
• Good idea or not, they’re dependant on me and I’m responsible for them. And of course I love them dearly.
• My work is in Sydney, as are my friends. I know it will be easy to get more work when I move back there. I could have more work now, but I can only stay for three days a week while I don’t have property there. Remember that sarcastic slogan of a couple of decades ago – “Give me convenience or give me death”? It might not have been too popular with financially focussed people, as I think it originated from within the anarchist community. What I’m aiming for in my life is a “triple bottom line” of satisfaction and success in financial, emotional and spiritual realms. Abandoning my cats (or dog) would be totally against my code of ethics and incredibly psychically damaging. All seven of us will find a secure happy home – I’m quite sure of that.
• Another property in Newcastle is a very good idea, as prices are rising so much more percentage wise than in Sydney, however it will have to wait till I’ve relocated myself back home in Sydney.
• Another good Peter Spann thing I picked up (amongst the very many in that tiny book alone) was “every opportunity is presented with a problem”. Or “challenge” as motivational people like to call “problems” And that’s what I’m working my way through now. Moving back to Sydney is only step one in a long process of wealth building, now that I’ve discovered the concept So far from my posting I’ve contacted two very helpful professional people who have already opened my eyes to the fact that I have more options than I had realised. I’m already feeling much more empowered
Thankyou for your reply and your good wishes:)
Regards, Leigh
__________________________________________________
ChurchMouse Manufacturing – Industrious and Frugal
brahms
Established Forum Contributor [154 posts]
Posted 25/08/2004, 20:40:58
what do you do Leigh, with a solid career path you’ll be able to lots and lots of stuff – with a stable residential base I’d be sorting this out first in order to establish a ‘bankable’ income stream, then go and then run onto the playing field.
might not be too popular in the i want it now world, but hey, it might work for you.
cheers
Brendan Heagney
Mortgage Broker
0438 436383
If you don’t ask, the answer is no!!Hi Brendan,
Thanks for your reply.
I totally agree with you. Once I’ve developed a “stable residential base” in Sydney I’ll be focussing on increasing my earnings in all sorts of ways. The job I have in Sydney now is perfect. Since I’m in much better physical shape now than I was before I started it six months ago, I’ll be able to work longer hours when I move back to Sydney, perhaps at the same place, perhaps somewhere else.
I’m also researching stock market investing at the same time as real estate investing, so I’ll be developing skills in that area too which will hopefully increase my income. These things take time though, and I only started this month
Regards, Leigh
__________________________________________________
ChurchMouse Manufacturing – Industrious and Frugal
Leigh- wrong guru- Steve McKnight wrote “0-130 properties” hehe.
Leigh, I used to commute from the other side of the coast to sydney to work. I did that for about two years, until I realised I didn’t want to be spending an extra 3 hours a day on work-related activities (travel). I now rent in sydney and use my income to pay off investment properties. The tax deductibility makes sense to me… but then again, I have no pets
The market in sydney, if you wish to buy, is way cooler now, so you can have plenty of time to get a feel for the market.kay henry
kay henry
  Moderator [2347 posts]
Posted 29/08/2004, 12:08:28
Leigh- wrong guru- Steve McKnight wrote “0-130 properties” hehe.
Leigh, I used to commute from the other side of the coast to sydney to work. I did that for about two years, until I realised I didn’t want to be spending an extra 3 hours a day on work-related activities (travel). I now rent in sydney and use my income to pay off investment properties. The tax deductibility makes sense to me… but then again, I have no pets The market in sydney, if you wish to buy, is way cooler now, so you can have plenty of time to get a feel for the market.
kay henryHi Kay,
Whoops! Yes, it was in fact “Wealth Magic” by Peter Spann which I read
Friends lent it to me, as I’m doing all the free research I can before investing in educational materials. There’s an awful lot of free information around too, helfully.So much so that I’m a bit overwhelmed with all the new information at the moment. Since my initial post I’ve discovered so much more and clarified some things, while coming up with ever more new questions.
On another site – Rick Otton – he speaks of “wraps” and “lease options”. I know there’s
a difference, but I can’t seem to get my head around what it is. Can you help to clarify it for me?And do you think that looking into buying in one of those ways would be useful in my situation?
And yes, renting would be simpler, however it’s not an option with the pussycats. I thought initially of a strata unit, as the elderly friend I stay with in Sydney had a dog and two (now one) cats when she first purchased. However I want to build an enclosure for them, both for their safety and so they don’t bother anyone. A friend saw one in Melbourne, on a top floor apartment balcony… Anyway, I’ve never liked living in flats, and in fact never did in all my years of renting in Sydney, now that I think of it.
I’ll find a way – I’m quite confident of that
Thanks for the comment about the “cooler market” in Sydney. I like to have time to think things through thoroughly.
I actually sent you a private message. Did you receive that? In it I asked what “PPOR” stands for. You were suggesting I should get one.
Also, is there a spell checker on this message software?
Thanks again for your help
Regards,Leigh
__________________________________________________
ChurchMouse Manufacturing – Industrious and Frugal
….What I’m aiming for in my life is a “triple bottom line” of satisfaction and success in financial, emotional and spiritual realms….Good for you Leigh, that sounds like the snippet I read somewhere recently which really took my fancy – “work like you don’t need the money, love like you’ve never been hurt, and dance like no-one’s watching”. Wish I could quote the author, they should get a pulitzer for that one.
Hope it all runs smooth for you and you find a great spot in Sydney. Didn’t mean to be mean with the cats question, good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
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