Hi. This is a cry of help and a major vent more than anything.
-In March 2006, at the recommendation of a company called Investment Property Solutions (IPS), I bought an investment property off the plan for $350k plus costs in Cairns (I live in Melb). IPS was either owned, partly owned, or closely associated with RAMS. The property settled in July 2008, at which time the RAMS valuation was $375k and the rent was $360/week.
-Just over 12 months later in Oct 2009, I had to drop the rent to $290/week as there was a glut of supply on the market. By Jan 2010, the valuation had dropped to around $300k.
-By Jan 2011, the valuation had dropped further to $290k. The loan on the IP is around $328k.
-Now, because of marriage breakdown, I am forced to sell it and staring at a deficit of around $40-50k.
-In hindsight, I realise this was one of the worst decisions of my life as due to very high credit card and mortgage debt, I may not be able to cover the difference even after selling the residential home (also financed by RAMS). I am in serious doo-doo. If anyone has any advice as to what possible options I have, I'd be happy to hear it. But pls don't state the obvious – I know I am in deep.
-I am livid at myself and also at IPS. They claimed they were reputable because of their association with RAMS and presented themselves as such property investment experts. I know I was naive, but I can't help feeling they (IPS & RAMS) were taking advantage of my ignorance (no excuse I know). I will probably end up lodging a complaint with the Financial Ombudsman in Vic, but am not optimistic of that achieving anything.
PS: Should I discuss with RAMS?
Thx in advance,
NevilleHi Neville,
If you haven't sold it yet, it's time to talk to all the creative people here. If you are able to receive private messages, I'm sure they will send you a message. Be open-minded and be responsive.
If you don't get any, don't hesitate to send them messages.
I met a wonderful lady who bailed someone out in the same situation as you. Her name is Lynn. I will PM you her phone number. Just tell her I referred you.
Take care.
Angelina
As much as you are in doo doo, by posting your situation here and being so honest I am sure you will help others looking to do the same type of deal in the future. It doesn’t really help you out I know, but karma works in strange ways. Don’t be hard on yourself either, you’ve come to the right forum to find solutions, there are some mighty smart people in here, all very happy to lend a hand
Neville,
I called Lyn on your behalf. Please call her, I'm pretty sure she can help.
Glen, if you still need help with your OTP purchase, get in touch please.
It is good to help one another. It's good karma.
Hang in there, mate. Help is on the way.
Angel
Hi Neville
Purely from a "rescue" point of view, this may be an alternative for you. Lets assume your loan is $328,000, interest only, at 7.5%. This gives you a monthly payment of $2,050.
I expect you could sell the property with vendor finance for $320,00, with a $10,000 deposit, at 9.5%, over 30 years. This would give you a monthly income of $2,606.
This income must be poured, without exception, into the $328,000 loan.
The vendor finance contract used to sell the property must have a 3 year "lock out clause", i.e. a clause to lock out any refinance, within the first 3 years of the loan.
If you do the math, you'll be surprised at how close your $328,000 loan will come to the new vendor finance buyer's loan, after doing this for 3 years.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Agree,
Angel
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