Help I'm about to be unemployed My contract is not being renewed where I work after March 2010.
I cannot afford to live on my rental incomes with my curent mortgage.
My total rental from my property is $300 per week after real estate agents fee is deducted.
My mortgage is $450 per fortnight with $145,000 owing to bank. Of course there are all the expenses with the property.
I have $20,000 in savings (line of credit).
I have no other debts and am single.
The property(s) consist of two small houses on 500 squares each. (I built these and subdivided 3 years ago).
They are in Tailem Bend, South Australia. On the the River Murray where the road forks to Melbourne one way and to the South East (Coorong) the other way and of course westerly to Adelaide (one hour drive).
I feel am a 'naive' property investor compared to a lot of you out there and so would welcome your experienced advice.
Thanking you all in anticipation for any help on this.
Kind regards from TheresaHow long do you think you'll be unemployed for? It is not yet March – have you started looking for another job? Surely the savings you have access to will last you a good few months – long enough to get another job?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I think you should start looking for another job ASAP, see how that goes. As JacM says above you still have enough savings to keep u going until u do find a job. Its good that u r getting ready for the worst but dont make any decisions while u r in a panic.
Hopefully it will all work out.
Yeah definitely try to replace your job quick smart first. Don’t panic and sell the property, you may get a job quicker than you think and then regret the sale later etc. Even if you have to use something undesirable such as a short term credit card in the mean time, it could help you holding onto the property etc.
I agree with the others.
1. Start looking for another job.
2. Talk to your lender. Perhaps they may be able to offer you a "repayment holiday" if you have enough equity in the investment properties?
3. Use savings to cover holding costs until you replace your income.Thank you JacM, Financial Freedom, recurit2 and Propertunity for your much valued and prompt advice.
I really appreciate it. I will check on my equity situation.
Cheers to you all from TheresaIf your line of work is the kind that takes a while to find another position, consider taking a different job in the interim, so that you can hang on to your property and buy time to find a better job
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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