Hi,
Need some guidance please!
We have house in Corlette, Port Stephens NSW. currently worth approx $600,000 which was built 1,1/2 year ago to ultimately sell and make a profit ( probably mistake number 1).and we have just tried to sell but cannot get the price we need at the moment as we owe $385,000 on the mortgage and in-laws invested $220,000 on the land. We need to refinance our home loan as we are paying 9.90% and $793 p/w interest only which is very hard for us at the moment financiallyWe have been advised to rent out the property to take advantage of tax benefits while we wait for value to increase and then we have been told its not worth it! We are confused as to what to do next. the question is do we stay living here and pay the mortgage and try to get more equity or do we rent the house out and rent ourselves (naturally something cheaper).
House can get around $450 – 480p/w in rent and we will have to spend around $350p/w to rent something else. My husband is a self employed builder so we have been told the tax advantages would make it worth it?
Need some guidance as how to make this property somehow seem like a worth while investment and where to go from here!!
Any advice would be greatly appreciated!Wow 9.9% i can see why you want to refinance. Was the deal a lodoc deal ?
There are couple of things you could do depending on your current position in regards to other areas:
You could always look to refinance and then make interest only repayments 12 months in advance so you can cliam the deduction in this financial year. Certainly a consideration if your husband has had a good year and dependant on your tax position (I assume the property is Jointly Owned).
It is difficult to give you much information without further income / expenditure figures.
Richard Taylor | Australia's leading private lender
Hi Richard, thanks for the reply!!
Yeah our position at the moment is very tight. Your right it is a lo doc deal and unfortunately we dont have the financials on paper to do anything else at the moment. Our combined income is around $90,000-100,000 net. we are new to the area so my husband is subcontracting to another builder on a monday to friday basis and getting his own jobs usually on weekends at the moment while he builds a name for himself up here. We dont have any savings at the moment and are struggling to pay off credit cards of combined $15,000 and we also have a personal loan of $25,000. The property is jointly owned and we have 3 kids also. When we first started all this our weekly repayments were around 620 per week and now we are struggling to come up with $800 per week!!!
Not really sure where to go from here to make this all work for us!!!
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