Ok, this might be a bit of a long winded question, but here goes.
My husband and I own a house on the Sunshine Coast worth approximately $400,000 and we owe $200,000. My husband has non-hodgkins lymphoma and has been having treatments etc since December 2010. He is on a DSP and I am on a carers pension. He isn't able to do much for himself because of a tumour removal surgery which left him with limited movement and intensive physio and the doctors have said he can't work for at least another two years (but more likely longer). We also have a 5 year old son which I need to look after as well.
We have been surviving up until now because we have been receiving $1500 per month (which nearly covers the mortgage repayment) from his Total Temperary Disability Insurance through his superannaution fund but that will cease after one more payment.
I am wondering if there is some way that we can sell 50% of our house (or shares in our house) so that we can raise the capital to pay out our mortgage and some how have the option to buy it back at a later date?
We could cash in some of his super through financial hardship but that will only be a quick fix and we will probabely end up in the same situation later on down the track. To make it more complicated, his cancer is considered incurable and will continue to come back and require more treatment with a life expectancy of 5 to 10 years. So if we cash in his super, he will end up with no super in his account and his only life insurance of $200,000 will end up being cancelled and he doesn't want to do that to me and our child.
I am really hoping that someone can give me and idea of what to do or what is possible.
Thanks in advance
Mandysorry to hear about your situation.
I believe it can be done, you may need to find a solicitor understand your situation.
the solicitor you are looking for also have to understand vendor finance, installment contract, lease option……etc..
this is a creative idea, but I think if you can find a willing buyer wants to access some capital gain and some interest income from your house, it can be achieve.
let us know how's the finding
good luck all the best.
I think the solution lies deeper then just selling half the property; that also seems like a band-aid solution…
How can you afford to buy that 50% portion back with no income? how long can the $200k last you…also not sure which road your going to take but be-careful of all the cost to sell, Capital gain tax and buy cost and legal cost- this could eat up quite a bit for such a simple transaction.Have you consider selling the property outright and renting or seeking gov assistance…since it’s asset and mean tested selling “may or may not work”…
I would seek financial advice on your situation; there are places that are happy to provide free financial planning advice and help if required – ie salvation army financial services.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Hi Mandy
Sorry to hear about your husband's cancer.
What you are proposing won't really work although it may be possible in theory.
For it to work you will need to find someone with $220,000 in cash wanting to buy half a property – what is in it for them? They will be up for stamp duty and will expect an income return as well. If you were to sell a lessor amount then you would all have to apply for a mortgage and be jointly and severally liable which won't really work either.
It may work out better to sell outright as Michael suggests. This may help you qualify for rental assistance if you then rent. You may be able to set up a special disability trust for the funds released and these are concessionally taxed and there are special centrelink rules regarding the transfer of money into the trust. If the trust had $200,000 it could be invested with the income going to your husband possibilty tax free.
I think you need some good advice.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
If I am in the same situatiion, I will sell the house and get the equity. For your husband’s cancer, he may try some natural therapy like Gerson Therapy. I heard it cured many cancer patients including lymphoma. There is one young female patient and her monther in sunshine coast, both are cancer and claim they are helped by Gerson Therapy.
In next 2 years’ therapy, your guys can survive in the equity and governtment pension while concentrating on the therapy. Good luck!
Hi Mandy,
Terrible news.
You should also speak with the bank to let them know of the looming hardship.
Make enquiries about converting loan to interest only immediately – this will relieve some of the financial pressure you are under.
Also recommend speaking directly with the bank about their hardship provisions. They may/should give you a release from the requirement to make regular payments to them.
If you are ahead in your payments you may be able to buffer the above two points by utilising any redraw capacity you have in your loan.
FWIW – I also agree with Terry and Michael. While selling your home may not be terribly attractive. Long term it may be the best option. Having said that the Sunshine coast property market ain't shining at the moment.
Hope it all works out for you.
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