I am in trouble.
I've come to the conclusion that I can't do the renovation work on my little house (story previously told elsewhere on this forum) that is needed. It was (as a cheapie) a longterm fixup project for me as my permanent home. Then after 20 yrs of waiting, I meet a man (too bad he isn't a builder) and abandoned my little country house.
After sitting there for almost a year as a rather expensive storage unit for some of my stuff, the mortgage payments are killing us, as the house is making no income. It can't be rented until some work is done on the windows, bathroom, and kitchen.
Over this time we've gone through so many ideas, and the 'quick renovation' theory has been put to rest by our lack of handy skills, and far too many calls not returned/appointments not kept by local tradesmen who can (apparently!) pick and chose their work from 6 month waiting lists! Ugh!
Thing is, it was a neglected house bought with the intention of being my permanent home…plus (at it's low price) it was my only hope of home ownership after 20+ years of renting. Now, 2 and a half years on, I am worried about it making its original purchase price. ….I'd really need to pay out the mortgage. The only improvements are a new side fence and a new r/c ac.
We have got to do something, immediately. I have given myself to the end of the month to clear my stuff out, but am not in the position to do any fixing up….the lawn's getting mowed and that's it.
I am wondering about selling privately, to help claw back some funds, but am at a loss at where to begin…I am familiar with realestate.com.au and domain and so forth…..But is there a site where people like yourselves are finding properties directly advertised by the owners?
Any other ideas?
Gawd I hope some of this makes some sense….sorry, not coping well with this stress!
B x
Hi there,
I hope this will help. I've seen a website that offers FREE DVD and FREE E-BOOK. All you have to do is visit the website and put your email address. Then, you will receive that DVD at your mailbox.
It contains a lot of info, onto what to do with your property… and how to use the equity of your house.
Lots of tips about mortgage and techniques on how to pay your debt. It even has info on how to invest in properties and stock markets. But as of now, clear your mind. Watch the DVD and get some techniques.
http://www.21stcenturyacademy.com.au/cmd.php?af=710342
This DVD has really enlightened me, and I realized why I am not rich… or financially independent. You'll learn a lot from this. Good Luck! Again, this is FREE… no hassles, no need to buy anything…
OK, Bronte, I'd like a bit more info, please:
1) How much money are we talking about? What was the purchase price, how much do you owe, and what is the potential rental income if the work is done?
2) Have you thought about paying a handyman or retired builder or somebody from elsewhere maybe $2 000 to go there for a week and do all the jobs that need doing in one fell swoop? A retired gentleman (sorry to assume, but it probably will be a man!) might be happy with some pocket money and a change of scenery. Try ringing handymen from the free local rag in a nearby big town or nearest city.
3) Where exactly is this property located?
4) Is there any possibility of you and your new man (congratulations!) occupying this property again, even for a while?
And some gratuitous advice – I know some people will disagree, but I think selling privately is false economy. I can't think of an instance where somebody has done it where I think that they had a better outcome than if they'd used an agent. Apart from their contacts, a good agent has valuable knowledge about the best way to sell particular properties in particular markets. I think even a bad agent makes their commission – a good one makes you a lot more than their commission.
Regards, Tracey in Brisbane
Bronte,
Don't try to sell your house when you are stressed. You might end up having your property sold below its value, or end up being eaten by a shark….
Now, try to analyze what will happen when you sold the house…
And if you sell the house now, what will be the value? If you had fixed it before selling, what will be the new value and how much it will cost you to have it fixed? Don't try to sell your house in private, just a piece of advice.
You might as well can get an equity loan to fix your house at minimum cost. Why? So, you could have a greater value of your house! You might as well have it revalued and might be surprised at the new cost.
Tracey is right, anyone here could help you better if you could put the amounts or value of your property or how much you owe, and your repayments.
However, back again to your equity. You might as well have equity on your house that you could put it into use. Get it and make some use of it. Also, learn how to use other people's money… of course, legally.
This DVD has taught me a great deal on property investing and investing in stock market. Try to watch this, and this is for FREE.
Have you considered wrapping it.
From what you state it may not be in a suitable condition as far as Bank is concerned for mortgage purposes.
I am sure you would find purchasers who are prepared to take it over at a realistic price and then add value by doing the work (as long as it is not structural or work requiring a Building License and Council Approval).
Richard Taylor | Australia's leading private lender
Hi Bronte.
I guess the end call will be yours. RE .com is for agents, as are many sites, but there ae ones that do owner/private lisitngs (ie owner.com.au) although could be stressful, and not a lot of 'fresh material' on those sites.
If it is in tas, Vic, SA west of adelaide, or below sydney in NSW feel free to PM me with more details, and what you would consider selling for, and settlement terms/time.
Regardless, all the best, there are plenty of options, although with the work required I think you may be on the right track in off loading it. Please do not let that put you off future property investing/purchasing – it will just mean using a slightly differnet strategy for the property and area you choose.
web site of interest
Hey, thanks everyone – I didn’t think they’d be so many people with such varied ideas….I didn’t want to bore with too much detail in my original post, but as everyone is coming up with good stuff, here is some more detail:
Okay, I am ashamed of the figures. Purchased late 2005 for 85k with not much less than that owing now.
Mortgage further complicated by the need to have a relative as a guarantor, as I was working part time.
Location? Western Victoria, population under 4000. 3 bedroom mid 1960s former authority house, in a street with only 5 ex-gov houses. Opposite park. Basic layout, but good sized rooms (lounge 18ft x 12ft) largest bedroom 15 x 12 ft. Weatherboard with aluminium cladding. Internally plaster in bed and living room and (?) lining boards in bath/toilet/laundry/kitchen. Original wooden windows need restoring or replacing (depends who I ask!) Survey at the time of purchase described it as a good sound house. Roof is iron, it looks rough, but a plumber suggested a high pressure clean would suffice. Bought in a neglected state, eg. Tiling incomplete around bath/shower, allowing for dampness to get into wall space between bathroom and toilet causing rot, and the need to replaster/repair. On moving in discovered the carpet smelt, lifted it to find much pet urine had stained & rotted this. Removed carpet and had floor boards polished, revealing signs of insect activity, although not recent or current. Corner of one bedroom (closest to bathroom) floor honeycomb like, but could (?) have been from the urine….why would anyone lock larges dogs inside a house? Original kitchen was half ripped out. No external shedding, paving, or landscaping. Big block.
Agents have previously claimed it could fetch $130pw + in rent once repaired. Local rentals are hard to come by, with agents having waiting lists. Local growth cited as being due to a new major industry coming to town shortly. Plus it is a lovely picturesque location – well that is what attracted me.
I don’t have a hope of taking out a loan for larger repairs, and have no desire to do so. This is further complicated by needing my guarantor’s permission on extending the mortgage. The man in my life has his own mortgage, and plans to purchase for us elsewhere for a work relocation that will take place in the next year, keeping his current property as rental investment. I currently have some huge medical costs that use up (his) all spare funds, so his borrowing for the repairs is out of the question.
Maybe at worst it would require up to 20k to have work done, but again regardless of $ getting the work professionally done seems near impossible. At one stage I decided to go around builders, and was to hire a window place from the next largest town to replace all the windows (7-10k) as they said they had a short waiting time, and the work would be complete within 4 wks….well, it took 4 months before they were able to come and look at the job…our plans had yet again changed.
Current plan – to continue to empty place, and get the agents in to see what they have to say for themselves.Trakka: Thanks for your comments….this is a sad but true story..I had the super handyman of all time ready to do the windows (restore & replace with 2nd hand) and he died suddenly. A second local fellow (who is actually a builder) would have been great, but had limited availability due to existing as a full time carer. I’ve been on the list for every local builder (and some from surrounding areas) to no avail. Admittedly, the most work would be a small job to a builder – but yeah, I’ve had no luck there. One previous plan to just co-ordinate various trades myself just didn’t work. My new man and I live some distance away, so there is no chance of us living there ever again.
Malquisce: I am with you, doing anything while stressed is not the way to go….it is just that so much time has elapsed while we have waited for various things to eventuate. Our own indecisiveness has been to blame, and we know it. I have no doubt that the cost of repairs would add to the sale (or rental) price, and be a good investment, but for us it just isn’t worth the prolonged financial stress while waiting for this to be done. Again, there is not a hope of us doing the work ourselves. No real idea of its current value. Locally, other ex-govt houses now start at 125k (usually those in neat, basic, original condition.) Yet, last year a nearby house similar to mine (without cladding, & with 20yo aluminium windows, original kit & bath) went for 105k, so I really don’t know..could the slight difference of location mean a drop in 20K?…certainly the 4 cheapest houses currently listed locally are 125/130/135. I just have to get some agents in for a current idea…I still worry I originally just paid too much in my desperation way back then.
Richard: Wrapping? Ugh! I think that is something best left to someone with a far stronger constitution than I!
V8ghia: You're right, I shouldn’t let this put me off future investments…and there will be future investments – but those will be purchased for that reason alone, making things far less complicated. The man in my life reckons we will regret (in future years) not realising the possible potential of this property.
Duckster: Well, I hadn’t heard of that site….however, I am taking notice of all said here…private sale was just one idea.
Thanks everyone!
Bronte,
I would be interested in more information as a potential buyer.Location, Address if your willing.
Price
Perhaps any photos that you may have.Email: [email protected]
Hey Mal111:
Thanks for your interest…
I have decided to spend the next few weeks finishing my emptying out of the place – as a lot of my stuff is stored there. So by the close of January I should be ready to show it to agents of any interested parties….
That is my deadline, and I am doing my best to stick to it!
B x
Hi, having nothing much to do except laugh for now, I decided to comment on your story. Sounds like a chapter in Reno Kings!
I think someone might want to asssume your mortgage or equivalent to that. It sounds like there's some advantage to an investor so don't despair.
I had one like that I just sold for land value. It was livable but only just. i got my brother to take down the downpipe that was leaning drunkenly & helped him to hide it.
It sold at auction & I saw a new downpipe the next time I passed by. I reckon the new owner is pretty happy. It's a good suburb even with the Melbourne train roaring past twice a day.
Oh, & the drainage pipe that a hole? We blocked it up for the open inspection & discovered that without the hole, the bathroom flooded. So everytime someone showered, the driveway had water running down it.
I actually did the calculations: if I spent $100000 in renos, I could actually make it work. I could raise the money but the waiting for approval & getting quotes were beyond me so I sold.
Bronte, I loved living in that house but other people's comments made me ashamed.
Good luck,
Kum Yin
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