Does anyone have any suggestions please?
We did have a share portfolio valued at $540,000 with a margin loan of $300,000
Like many other people in the same situation our share portfolio is now valued at $240,000
The loan is now $325,000 as interest has been capitalised.We are considering taking the $240,000 as cash and buying property. The question is do we aim for
cash flow or renovations for capital gain?We are approx 18 months from retirement so there is no room for error.
You have really answered your question by " you have 18 months before retirement".
Capital gain takes time and you may do a renovation and find the market price for the finished reno is not adequate to make a profit.
So there is a risk that at your time in life you may not be prepared to take.
You are in a real predicamentIf you sold all your shares you still have to find $85,000 to pay off the debt shortfall.
Hopefully you have other assets to sell or borrow (not with a margin loan) against to pay off the extra $85,000
Go and find a good (recommended by someone you trust) Financial Planner. Time is not on your side and you need solid advice.
We are considering taking the $240,000 as cash and buying property.
You have to pay off the margin loan !! You do not have $240,000 cash you owe $325,000 !!
shakenbake wrote:Go and find a good (recommended by someone you trust) Financial Planner. Time is not on your side and you need solid advice.Unfortunately the sad situation we have is due to following the advice and recommendations from a Financial Planning company, HJ Garden & Associates based in Toowoomba, Queensland. Friends had referred them to us.
Therefore as you can appreciate we have very little faith in financial planners but do agree we need good advice.Jeneb,
I am truely sorry to hear of your misfortune at this stage of your life, but as Duckster correctly says in his post . . . .
"You are in a real predicament
If you sold all your shares you still have to find $85,000 to pay off the debt shortfall.
Hopefully you have other assets to sell or borrow (not with a margin loan) against to pay off the extra $85,000"
I am an independent individual property investor (not a Financial Advisor), however even though you have had a recent bad experience it would seem you are going to need the advice of a GOOD professional Financial Advisor as ………..time due to retirement & possibly your current net worth may both be a little short.
some things you may wish to consider ( I am unable to give you profesional financial advice):
a. delay retirement 1-2 years
b. use current home equity or super funds to pay off the $85K debt
c. Once $85K debt is repaid IF you have sufficient equity from your super or PPOR you MAY ? be in a position to purchase a cash flow+ investment property to generate some future income.Please seek professional Financial Planning help before you do anything !
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