I'd really appreciate people's advice. About 18 months ago I lost $170k which now turns out to have been a ponzi scheme! I drew the money out of the equity in my two investment properties.
Both properties are IO loans.
Property one is a three bedroom house valued at $500k. I owe $316,494 on this (which holds a redraw balance of $43,300). The rent is $1,437 (after property manager's fees) per month and the repayments are currently $1,656.
Property two is a one bedroom flat valued at $300k. I owe $103,909 on this. The rent is $877 per month (after property manager's fees) and the repayments are currently $543 per month. I work fulltime and earn $46,500 per year.
With the way interest rates are going, it won't be long before I won't be able to keep up with the interest repayments. I've held both properties now for ten years and I can't see anyway out other than to sell the flat that's valued at $300k as it hasn't performed as well as the other property over the same time frame.
Can anybody see anyway of me doing SOMETHING so as to be able to hold these two properties (financially or otherwise?). I can't squeeze anymore rent out of them than they are providing now.
The way I see it, I have no other option but to sell one and with the way interest rates are going, sooner rather than later. Many thanks for reading and any opinions/comments are greatly appreciated!
Cheers,
Gats!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
