Hi there – I am currently negotiating a settlement with my employer (who I have been with for 7 years) and under the settlement I should net approx $250k but this also means I won't be able to work until Sept 2011 as they are making that part of the settlement conditions. I am desperate to get into property development and want to look at this as a long term career. However, after talking to my mortgage broker he says the banks won't lend me any money to start buying property as I will be on a "no work clause" until Sept 2011 and if they lend they need to see the future earnings etc. I currently own a property with approx $250k equity in it and am planning on selling it to relase the equity and also to reduce the financial stress on me – as the mortgage is $800k.
My options are to get a line of credit mortgage now whilst I am still at my job and buy a smaller place (approx $400k value) to live in – which will then leave me with approx $350k cash in the bank after I have factored in living expenses and costs for 6 months.
My question is what can I do with this $350k? If the banks won't lend me any money when they realise I am no longer employed do I look at buying a really cheap property to rennovate (in the $200k mark) so I can buy outright and have enough money to do it up and then sell for a profit in 6-12 months? If so where is the best place/area to do this? I live in Sydney and there are not many properties on the market for this amount or that need rennovating…..
Plus I can't seem to find any websites that give info on properties like this on the market.I really am stuck and am desperate for some advice as if I have to take 12 months off work plus have a decent amount of capital I really want to make it work and have potential to do something different with my life.
Any advice would be greatly appreciated
RLI am aware of a few property investment opportunities in melbourne, brand new house and land for 350k
Rlewis wrote:I live in Sydney and there are not many properties on the market for this amount or that need rennovating…..
Plus I can't seem to find any websites that give info on properties like this on the market.
RLSorry to disagree but there are loads of places sub $250K in Sydney that need renovating (that's why they're cheap). Some just need cosmetics. Others kitchen, bathroom etc, some burnt out needing EVERYTHING. Taker your pick..
"Go west young man". Or south.
Mt Druitt suburbs 2770 postcode. or Campbelltown and surrounding suburbs.
look up this group.
http://www.therightgroup.biz/ Their buyers agent (Nathan) was on Channel 9 tonight and is in August Australian Property Investor magazine. He buys stuff like this everyday. They are not pushy or trying to sell anything. Their fortnightly meetings are very informative. Well worth a look. Every second Tuesday at Parramatta. They will draw you up an investment plan for no cost (or obligation).
Sorry RL may i ask if you have a superannuation fund it might be worth checking whether they have income protection this might provide you an income till you can work again.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
