Spudway,
As we are at (or very near to) the bottom of the interest rate cycle how are you planning on funding your loan when money gets more expensive? If you can’t afford it now,, how are you going to afford it when rates are on the up? (I know you say you can afford it but the banks have reviewed your situation and credit history and declined you and I’m with the banks on this one)
You said you have some friends who are going to come and stay with you (which you presumably haven’t told centerlink about). Why don’t you buy the house with them as well with an option to buy them out in 5 years or something? If they bought $30k of the house and you bought $80k the bank would only need to loan you $30k.
I agree with some of the other comments provided by crashy and others.
– You have $50k in the back burner that you aren’t working.
– You have a bunch of cars… interestingly enough there is another thread on this site with people who own a bunch of properties and the crapbox cars they drive. You don’t need good cars like that and I’m sure they have an ikea in WA.One thing that I find very odd is that you have only asked for a big chunk. You are going to have more luck getting a little money from a lot of people than a lot of money from 1 person. To me that screams “scammer”
Here is a strategy for you.
– Do as much charity fundraising, donations etc as you can
– Sell as much as you can (cars included)
– Live within your means and save as much as you can
then you can approach the bank when you have saved a further $20k (from above items) and then go to the bank and try and get finance.you may not agree with my approach (and tough biccies if thats the case) but the fact is, what I have said to spudway is what he needs to hear, and will help him in the long run.
It's easy to lack foresight & assume any criticism is destructive.
It's easy to cry foul when someone doesnt blindly pat someone else on the back.
It's easy to assume the facts presented are the whole story and entirely truthful.It's much more difficult to check the facts, then consider a solution.
It's much more difficult to question if your response really helps in the long run.
It's much more difficult to give constructive criticism than to be mindlessly supportive.The comments about having 5 kids wont help the family right now. It may have been a mistake, but it was made in the past and there is no solution for that issue. With an aging population the more kids the better. Just make sure you have a plan to support them.
spudway, you wrongly assume that packing up the family & moving thousands of km across the country will solve all your problems. IT WONT. I know, Ive done it. You wont be better off financially, dont delude yourself. All you will achieve is losing a large chunk of your $$$$ on fuel getting there & high setup costs. You may also lose the support of friends & family. Your kids will struggle in new schools and lose all their friends.
Given that you have admitted you don't want to sell the 4wd's, it will cost a lot of money to get them across the country. Would it not be better to sell them before you leave?
aShep is spot on. If that banks say you cant afford it, then you cant. The exception is dodgy cash business tax avoiders with extra income the banks don't see. Are you one of those? Please explain how you can afford a loan when the banks say you cant.
be grateful for what you have. Your life is far from tough. The rest of us work our butts off just to put food on the table & have a roof over our heads. You clearly have no money worries thanks to the govt handout (here is where 5 kids really pays off). If you did have money problems the 4wd's would already have sold by necessity.
I also agree with Maree. Since when do kids support their parents? what does that say about your investment skills if you feel you need your kids to support you in old age?
One day spudway, you will look back & thank me. But for now, feel free to call me every name under the sun…..
L.A Aussie wrote:Terryw wrote:You are assuming Spud had kids while on the pension.
What should he do if he kids came first and the pension second? Adopt a few kids out ???
And what is a solicitor loan? They don't exist!
True; I did assume he had kids while being able-bodied and working.
I still think having 5 kids in this day and age is impractical unless you are earning about $1 mill per year – that's if you want to have a decent lifestyle as well.
Most people I've seen with this many kids struggle their whole lives. Maybe they are totally happy?
I'd rather put a lot more quality time and quality life into 2 kids; take them on nice holidays, buy them decent things, put them in good schools.
Our family doctor has 5 kids, but he has a practice, and his wife is a nurse who does agency work and earns a nice income without having to sacrifice too much time away from the kids. Their lifestyle is very nice.
For the average earning Father, with a Wife who stays at home with the 5 kids……a life of less is guaranteed – unless there are generous Gubmint handouts.
No thanks.
It's a conscious decision. Some may say it is mercenary. I say it is about having the best life you can, and have kids in it.
The tricky part is balancing the number of kids with the income.
Most people don't think about this in my experience; they just plow ahead and pump 'em out. That's fine; but they invariably end up in the same boat as our mate Spud for one reason or another – they lose their job, or their health, or both etc.
As for the "Solicitor Loans" these are like a second mortgage loan they provide from trust accounts. They do exist – not all solicitors do them, and they are higher interest rate. They are usually short -term. We have done two of them over the years. Work well for a short-term solution.
hi Marc
I think you will find solicitors cannot lend out the money in their trust accounts – they would be struck off.
However, there are private funds available, usually the money comes from superannuation funds and religious institutions. LVRs would be around 70% though. So I don't think it would help spud.
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 all thanks for all your help
we got finance …our payments are 367.89 per month …crashy are you sure we can afford that …cheapest rental we could find was a trust home at 110 p/week ,,,, now to all the people that helped thank you …now lets address crashy ..pleas do sue me ..ill counter claim ..and as we didn't need to use all our savings we can afford a solicitor ..ps as the action was in Australia you would have to make the application in Australia ..now to set the record straight ..we had our kids before i went on the pension ..i tried to set up a business that centrelink new about as we keep them informed all the way ..as for telling them about our friends moving in with us ,,well how can i tell centrelink as it hasn't happend yet ..as for asking for a big chunk ..well most people get all their mortgage from the one place …we can now sell our car when we get there ..and get a smaller one ..we only had the parado for our business ,,,we dont like hand outs ….as for the heading of the thread ..our family need help … not a hand out …we were oferd the monies at 20% by 2 people ..over 2yrs .. crashy plese dont judge a book buy its cover ..and tar everyone with the one brush…good work spud.
how did you find the finance – was it from someone reading thispost?
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
1. are you still entitled to the FHOG $14k grant with people renting part of the property?
2. doesnt the $200/wk rental income reduce your payments from Centrelink?
3. dont you lose the rental assistance payment from Centrelink now since you no longer pay rent?
4. why spend hundreds of $$$$ in fuel driving vehicles across the country, while also increasing their milage….instead of selling them before you leave?in response to terry
thanks for your help we got finance thru bank …'in response to crashy
1 yes we are as long as we are living there
2 yes it will but only if and when we go we cant inform that something is happening until it dose
3 yes we do but both wife and i have organized jobs when we get there
4 hundreds of $$$$ in fuel is better than thousands of $$$$ in flights and will get beter price for car and truck in wa ..
like we said we dont wont handouts we wonted a loan ..if we where bludgers it would of been eser to of just sat on our arse and colected charity .as for our move 2 wa we are from wa originaly ..now to our kids ..wow we wouldnt change them for the world ,,and no its not for the hand outs ,,we didnt get any ,,we had our kids way before that rubish..
we are hoping to be of the pention by the end of the year ..ps ….most pepole i belive would not wont to get of pention ,,as thousends are trying to get on itto all the pepole that helped we thank you
to crashy well wot can i say ..everyone is thinking the same about you ..and please dont judge ..not every one is a bludger or scammer
as for asheep we have never entertaind the idea of having the kids to look after us …Hi Spudway, congratulations. Didn't post before cos I didn't want to add to the confusion. I'd dig up Crashy's previous posts if I were you & you can see whether he's been at all positive at most times.
Good luck going forward & hold that pride high. You're doing far better than lots of people.
KY
Well done, spudway. You copped a lot of crap from your post when all you were seeking was help – it's good to hear you got finance in the end. Hope all goes well for you and your family.
Cheers
GezI have read this post with interest and am dissappointed with how quickly some have jumped to a conclusion of "scammer" "bluddger" and feeling that they had a right to express an opinion on the number of children that you have.
I applaude you decision to regather yourself and start anew. In the current environment I feel yours will not be an isolated story. I personally did not find it hard to understand that you were asking for assistance with a loan rather than a handout as implied.
I wish you well with your move and all the best to your family.
Oh, and to those that feel the need to comment on the number of children per family, whilst I agree you need to be able financially support your family, it is more than potential income that makes a good parent. There are many children from larger families that have "less" that grow up with alot fonder memories than those from smaller familes who had "everything" except the time of their parents who were too busy working to provide "everything".
Be very careful casting judgements without knowing the circumstances. It only makes you look ignorant and foolish.
hi spudway
i am sorry i cannot help you but i feel compelled to say the following.
i am appalled by some of the replies you have been given. in my opinion they are offensive and personal attacks.
i realise on on line forums all kinds of people are reading and replying.
a bit more compassion would go along way. not everyone is lucky all the time. a constructive comment costs nothing.
good luck with your journey and do not be discouraged.
there are other forums. given the tone of replies here i think i will move on.
a word of caution be careful seeking advice on line re property in particular. in your situation you are vulnerable to all sorts. i will say no more. regardsIgnoring the number of children arguement that plagued this topic. I have a quick question; I recognise the fact they would have had a rather high DSR, but as spudway said the property was "valued at 205k we
bought it at 110k ..and putting 50k deposit in".If the LVR was only 30%-ish why did they struggle to find finance?
Ozzra,
You may also note that there is a history with a failed buisiness, an injury and no current income from employment. Having equity is one side of the equation, I imagine the problem was finding a lender who is happy to compromise on the servicability, particularly in the current environment where the equity position is variable upon a tough market.
In the end it would seem that persistance paid off.
hi the banks have a formula for working out how much you can borrow ..the more kids you have the less you can borrow …if we had only 3 kids we wouldn't of had a problem ..but when the banks did there call thy worked out our borrowing capacity in the negative …when we went higher and got to speak to someone with commonsense thy saw we could service the loan ..
hi all 5 months now .. love our new home ..been offerd 220k for it ..but we will not sell ..all the kids love it here . lots going on in the distirict . mines starting ect . a transport company is going to rent our oval . all in all doing gr8
Good work spud
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 all 9 months now doing great … have moved into the school building now ,, we can sell the headmasters house after we have subdivided .. we have a offer of 95k for it ,,mining company has oferd to set up accomadation on our oval . for 2 years . just working out the details, kids are doing gr8 ,,
thanks terry for your kind words you kept us going , im glad i didnt listern to crashy , we would still be up the creekhi all a year and a half now
we have just got shire approval for a caravan park and cabins .. all in all we are doing gr8Great to hear Spudway, best of luck.
What town are you in btw?
Merry xmas, Dave
Maybe you could look at private lenders.
Not a recommendation but look at the link below to see what a private lender looks like
http://www.fussfreefinance.com.au/Also you may be able to get a vendor financed loan via a wrap or rent to buy scheme
Not a recommendation but look at the link below to see what a vendor finance lender looks like
http://www.ownyourhome.com.au/
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