Hi All
Over twelve months ago I invested in a property. Aside from this I also have a car and credit card debt that I need to take care of.
The property has tenants paying $160per week with my monthly repayments @ around $480 per ft. I owe $160,000 on my mortgage. With the market as is I could sell the investment property for around $200,000.
My car repayments are $320 per mth and I owe $5000 on my credit card.
I am paying expensive rent and am struggling a little.
1. Am I better off selling the property and reinvesting after covering other debts?
2. Keep the property, continue to pay little by little off debts and review in 12 months?
If I was to decide on option 1 would I live in my reinvestment or rent it out?
Any assistance would be appreciated.
Take care,
[biggrin]
Originally posted by Ref:my monthly repayments @ around $480 per mth. I owe $160,000 on my mortgage.
Hi Ref,
Is this correct? The monthly repayment figure seems too low to me and my maths.
And the car debt is?
Derek
[email protected]Property Investment Support Available.
hi ref
i really think you need to be speaking with a qualified financial advisor. i dont think this forum will address your overall financial position adequately.
if i was to offer you advice on the property, it seems a little odd that you are renting and paying off an investment property?? i think if i were you i move into the property and with whatever savings you make from not having to pay rent plough them into paying off your debts. once those debts are relinquished and with the equity that you hold in the property you may even be able to purchase an ip???
hope all works out for you.
eric.
Do the figures on selling and then buying another property later – agents fees, Stamp Duty etc etc
You are prob looking at nearly $20 000.
I think one idea might be to target the smallest debt, wipe it out and then move up to the next one.
Pay IO on the IP loan and send all principal payments into the other debts.
Just some food for thought.
Simon Macks
Interest Free Home Loan Agent
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0425 228 985Please email me rather than using the PM service here.
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Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Ref,
I have edited your orginal post (month – foortnight) to assist others who may care to comment.There are a few immediate possibilities that could be worth considering. Some of which may, or may not, be relevant or appropriate.
1. Rent something cheaper.
2. Sell the car and use public or a cheaper form of transport.
3. Convert IP loan to I/O, get a depreciation report (if relevant) and apply for section 15.15 PAYG variation to assist with cashflow.
4. After freeing up spare funds through (3) start attacking your cc debt.
5. Refinance car into home equity loan (with car portion split) to save in repayments. Any savings made this way can be directed to cc.
6. To me selling an asset is the last resport option. Why sell an asset and lose the stamp duty/agents fees etc as you exit and then, at some stage in the future, re-enter the property market.
7. Second job?Derek
[email protected]Property investment advice and researched property in quality locations available.
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