Hi all,
We have one IP (owing $130K – worth $160K).
We had a PPOR and sold it when we moved states – now in ACT.
We bought a new PPOR in November 2005 and are deeply regretting it.
We love the house: good living space, 3 bedroom, good sized yard. We’ve spent about 9k on it – putting in ducted heating, polishing boards and a bit of carpet.
BUT I CAN’T STAND THE BURNOUTS ANY LONGER!!! (Can any of you young thangs out there tell me what compels these highly intelligent (!) young males to burn rubber up and down the street, in the shop carpark across the road ALL DAY LONG???) Cops? ha!, have you seen how fast a burn out takes and how slow the cops are?I don’t believe I am a snobby or posh or snooty person but the other issue is that the general locality is just a bit rough and ready, bit of a different demographic than I am used to. I guess we were motivated to buy the house because it had space and meant we would have a manageable mortgage (PPOR cost $315K, we owe $250K).
We want to sell and rent in the area we really like (but couldn’t afford to buy in). It’s got the schools I want to send my kids to, friends , closer to work, better facilities etc). We know all the arguments: “stupid to sell so quickly”, “think of the lost interest and stamp duty”, “your main focus should be on paying off your PPOR”, “don’t be snobby and just stick it out for another 5 years so you don’t make such a loss”, “should’ve bought location to start with”
Keeping it and renting it out is not an option (1 income = no cash flow to top it up).Is there any point selling it, putting the profit onto our IP – possibly even make it cash flow+
Does anyone out there have any kind words of wisdom? Has anyone ever experienced the same thing? It seems to be making us very tense and unhappy. I’d be happy to hear any philosphical speak or anything ie, confucious say burning rubber don’t maketh the mortgage smaller.
How can we ever own our own PPOR? That is my sole dream at the moment???
Thanks
Enelson
Enelson
Not alot of info re your IP which makes it hard to give advise.
Could you either turn PPOR into another IP and rent or sell your IP and keep funds aside until your ready to try the property market again in a place where you would want to live.
What area is the PPOR? Have you tried to get a rego numberor car description to give to Police? Or have you rung the Police Station to make a complaint and ask them if they could patrol in oorder to catch these kids.
Have you got together with your neighbours and approached your local member?
Lots of options, just a matter of picking one that suits your circumstane.
Cheers from another Canberran
Jenny1
We owe $130K on IP worth $160K – it’s in Sydney.
Our PPOR is in Tuggeranong or Thuggeranong, as I’ve been calling it lately!
We are yet to lobby the member but we’ve repeatedly asked for patrols (the shops across road are also regularly vandalised). Hubby has started running out in his jammies flashing his spotlight (yes, just his spotlight!) when the burn-out boys do their thing. He gets called all sorts of names.
Enelson
Enelson
I sympathise with your situation.
Had another thought what about a letter to the Dept Transport/Roads re speed humps being placed in your street. Also keep a diary of how many episodes on any given evening, the power of the pen is really underestimated.
I personally would not be selling as you will end up with alot less than what you started with.
Good luck
Jenny1
I would look at getting out asap and establishing a happy home life for yourselves in a place you want to be in. Whether that is renting or buying will depend on your finances.
Once you are haooy and settled in your home then you can really go for the investments. Being miserable at home is a huge distraction, and if you are always feeling you need to watch out for your kids and if you are not happy in the schools they are in then you might find yourself dealing with situation after situation that you could do without.
Plus if you are not comfortable in your local home area and you have children growing up there then you may not be happy with the repercussion to them.
I say put the house on the market. You never know you may cover all your costs and be able to move to another area. Try and see – you may be pleasantly suprised with the price you will receive. Try an agent that does not charge advertising unless the house is sold.
let us know how you go.
Theres alot to be said about casing out an area that you intend to live in before buying [light].
And please stop your husband from going out with his flashlight. It will take very little for things to get out of control – I’ve seen it happen.
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http://www.depreciator.com.auI agree with Endless Summer.
No amount of money can replace a potentially broken family life or the damage to your children. Start talking to agents…
Good luck
Kim
Hiya E Nelson,
We were in your situation about 8 years ago. Bought our PPOR for cash ( to eliminate our NTDD) in a really dodgy suburb surrounded by dross.
We made a serious commitment, despite opposition from family and friends to just get out of there, to hang in there for 3 years so we could transfer the increased equity into another PPOR in a much better nice family area that the wife approved of.
Our girls at that stage were just small, so not alot of interaction was had with the dross. As the eldest got to an age where interaction with very average people was occurring, we made the decision to enrol her in a school where she was associating with normal kids with great parents.
The cost of travel was miniscule compared with all of the selling costs. We kept the house and turned it into an IP by me buying it off the wife (she owned it 100%) and transferring the equity without having to sell.
End result, no selling costs, no loss of growth on the prop – it’s gone up heaps, able to lean against it as security, and most importantly from your perspective, upgraded lifestyle to a better area.
Had a laugh over your husband in his Jam Jams. [biggrin] Not owning a pair, not sure what I’d do about the hoons, but in Canberra I’d suspect you’d need to rug up a bit more.
Out of interest, were you aware of the hoons prior to purchase, and if so, did you get it for a discount as a result. If you did get it cheaply because of the location, you are now simply paying your dues with the inconvenience, if not, you simply ripped yourself off by not doing sufficient DD.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Dazzling – thanks for your insights.
We weren’t aware of the hoons and our neighbours have confirmed that since we moved it has got much worse. Yes, thorough DD is essential and we have learned the hard way. I think most of the problem relates to the street itself – we are located right opposite the IGA so it is the epicentre of the suburb and we get all sorts…. I hope the whole suburb is not accurately represented in the shopping centre snapshot.
If we were to sell tomorrow we’d lose about $50K. That’s really stupid isn’t it? We are trying to get ahead not p*** money down the dunny, which is what it would feel like.
We are still thinking hard about it all but your story Dazzling has helped… my kiddies too are young (three under 3 for a while there!! no twins, crazy lady) and the eldest goes to school in 2007 so perhaps we can stick it out for a bit and move on in a few years. Would make a great IP being close to the services and transport etc…. love the word dross!
still thinking. geez I write too much.. look I’m still going… on… and on…. and on….
Enelson
hi there buy a box of nails
Take photos of the cars where you can’t be seen doing it and send anonymously to the cops
Hey eNelson,
Maybe try and meet these kids where they are at.
I would maybe try again to speak to them about how hard it is for you guys and those surrounding the carpark when they smoke up the tyres.
Then maybe offer them all free tickets to the Summernats if they give you peace?
Just a thought
Dematio.Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
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