All Topics / Help Needed! / What to do with bendigo property

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  • Profile photo of tiggartiggar
    Member
    @tiggar
    Join Date: 2013
    Post Count: 3

    Hi everyone, this is my first post and need some guidance. We bought a property in Bendigo with the idea of renting out . it needed some work. Its taken 3 years yeek and its still not finished to my standard but is certainly rentable. We got a loan that is against our own home thats what the bank offered at the time. We have been paying both homes off . We pay $1900 fortnightly for both loans. I feel like we are going no where should we sell it or or  rent it out what????

    Would love some advice / thoughts .

    Im happy to add any more info to give a clearer financial picture . I would like to be able to get more properties but actully see a return.

    Regards Tiggar

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Hi Tiggar,

    Welcome!  Hope you find us a friendly bunch and that we help you out with your issue.

    I'm not sure I've understood correctly – could you clarify?  Are you saying you bought  rental, and that it's been without tenants for 3 years because you have been renovating it the whole time?

    Jacqui Middleton | Middleton Buyers Advocates
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    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Tiggar

    I've read it the same as Jac M – you've been renovating for three years????

    If so, it's time to forget what your standards are and get the place into a rentable condition and onto the market. 

    If you've got an owner occupied loan – focus on getting rid of that debt before you pay off your investment property debt.

    To do that, you need to have the investment loan set up as interest only.

    Cheers

    Jamie 

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of arnulfarnulf
    Participant
    @arnulf
    Join Date: 2008
    Post Count: 2

    You should also consider talking to your accountant about apportioning loans and costs against your own place and the rented property to correctly claim tax deductions. But really, get it rented! If you then decide to sell 6 months down the track you can always sell it with tenants.

    Profile photo of tiggartiggar
    Member
    @tiggar
    Join Date: 2013
    Post Count: 3

    Thanks for your replies. Yes unrented for 3 years. To be rentable needs a paint inside where renos done.What does it mean to apportion costs. We borrowed 250 thousand against our own home so not an investment loan. they call it the wealth package but charge us 350 dollars a month to have it . I know we have done this all wrong and its cost us but really I dont know where to start to change things and move forward. Should we refinace our loan so its an investment loan and therefore could negative gear.

    Could some suggestions be made on where to go for good advice. Basicaly I would like to sort Bendigo out and then look at other investment opportunities.

    regards Tiggar

    Profile photo of Nigel KibelNigel Kibel
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    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425

    You should speak to Jacm  this is what she does you will not get better advice

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    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    tiggar wrote:
    Thanks for your replies. Yes unrented for 3 years. To be rentable needs a paint inside where renos done.What does it mean to apportion costs. We borrowed 250 thousand against our own home so not an investment loan. they call it the wealth package but charge us 350 dollars a month to have it . I know we have done this all wrong and its cost us but really I dont know where to start to change things and move forward. Should we refinace our loan so its an investment loan and therefore could negative gear.

    Could some suggestions be made on where to go for good advice. Basicaly I would like to sort Bendigo out and then look at other investment opportunities.

    regards Tiggar

    Hi Tiggar

    You need to get that property on the market for rent. 

    As for the finance structure, best to consult a professional that deals with this on a daily basis. Can be a broker/banker providing they know their stuff.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Hi Tiggar

    Feel free to drop me a Private Message by clicking on the "Send PM" link on the left inside this post box.  Happy to have a quick chat to you on the phone to understand the issue and point you in the right direction.  Remember to include a contact phone number in the PM if you would like to do that.

    Jacqui Middleton | Middleton Buyers Advocates
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    Why did it take you 3 years to renovate? What problem did you encounter?

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
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    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196

    Hi Tiggar

    It sounds like this property needs to start 'earning its keep' ;-)

    We have a process we call negative2positive that involves selling the property with vendor finance.  This normally has the effect of locking in your capital gain and generating positive cash flow.  An outline of what's involved is available at  http://www.negative2positive.com.au

    Cheers,  Paul

    Paul Dobson | Vendor Finance Institute
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    An alternative way to finance your home.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    JacM wrote:
    Hi Tiggar

    Feel free to drop me a Private Message by clicking on the "Send PM" link on the left inside this post box.  Happy to have a quick chat to you on the phone to understand the issue and point you in the right direction.  Remember to include a contact phone number in the PM if you would like to do that.

    I'd be taking Jac up on her offer.

    She's a fantastic contributor to the forum and clearly knows her stuff.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of tiggartiggar
    Member
    @tiggar
    Join Date: 2013
    Post Count: 3

    Hi Shahin,

    It took this long as we at first decided to do it ourselves. The house is an 1860s miners cottage it was i bad condition . Needed re stumping, floors done, 2 bedrooms gutted receilinged ,new walls new windows new front verandah. Plus it was under a potential Heritage title listing not told this by solicitor who did all checks before buying . We were told we had to be careful by the council what we did. It is now a listed property.

    We also looked at extending and had plans drawn up but the cost was too much. Time also ran away with us . We would visit for a weekend do a few things and time passed. Have to say ended up my job as I work part time to husbands full time job. It was and still is stressful so cannt wait to learn what to do to get out of this mess lol.

    regards Tiggar 

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Yes I presumed there was a bit more too it than met the eye.  Heritage listing hurdles.  Tiggar I have responded to your PM – I'll give you a call tomorrow and give you a hand with how to navigate your way through to the light at the end of the tunnel smiley

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Tiggar

    Firstly welcome to the forum and i hope you enjoy your time with us.

    Sorry to come in late in the post but i think the snow here in the UK has slowed down my internet connection.

    Thankfully i am leaving today so will be back in the warm shortly.

    I had to read your post a couple of times as i couldn't believe what I was reading.

    3 Years is ridiculous to even if it 19th Century and i would definitely listen to any suggestions JacM offers as she is a Queen when it comes to renovation.

    On the finance side i am not totally convinced that your loan has been set up correctly (maybe suitable for the Bank but not for you the investor) and this might need tweeking to ensure you are maximising your deductions.

    Also be interested to see what your Tax Returns look like as i am not sure you are fully claiming what you should.

    I think i would be getting some Professional advice allround so that you can start going forward and not backward anymore.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

Viewing 14 posts - 1 through 14 (of 14 total)

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