Didn't think it could get any worse...

How do I sign up to your mentoring? I haven't been enough of a heartless prick lately and I need some tips.
I'm sure everyone would love to see the data that backs up your statements.
Forum members enjoy differing points of view, but baseless statements and trolling people who are finding outlets for sharing their issues won't be popular.
Telling people your opinion doesn't make you a mentor, it just makes you opinionated.

 

Why all the doom and gloom? I just don't understand it.

Money is incredibly cheap at the moment, there is going to be a projects boom around Australia in the next years. I have seen this before in several countries,
In Gladstone for starters you have the following projects coming.

• Curtis LNG stage 2 expansion $8 billion
• Gladstone to Fitzroy River pipeline $345 million
• Raising the Eden Bann Weir $171 million
• Bowen to Gladstone LNG pipeline $450 million

You have a 4.4 billion dollar steel plant project that will be built there soon.

You will have so many business associated with all that moving into that area.

You have a lot of movement of retirees up there that will take up a lot of the housing stock and inject money into the economy.

Gladstone is a safe place to invest.

Weather the storms. Reframe the view you have.
If it cost more once before it will cost that again.

The property values will steadily climb again and with each quarter your loss will be less until you cut it loose, even at a loss but not such a big one.

 

There are 1170 rentals available in the Gladstone region and 2700 properties available for sale.

Let me tell you what's really going on.

Your agent realized you can't check up on them.

They shoved a ******* tenant into your property to ruin it.

Now they don't want to manage it for the $20 a week or $1000 a year max they can get from it, so they are trying to maximise their returns.
It's a slow market up there but they lower the prices and secure their salaries.

If the sell it they will get $10000 dollars straight away and they are all in cahoots with each other.

The agents are flogging you. You are being played.

I have looked at the situation.

Go back to my earlier posts and reread them.

 

You have absolutely nfi what's going on in Gladstone. Thank you again for proving you're an oxygen thief

 

I agree with this. I think there is a lot of short sightedness in this forum, human thirst for money, especially in developed economies is insatiable, it's been 5 years since GFC, sure the economy hasn't done much, but still a lot of people have made Money....

 

Sorry for coming in so late - I have been overseas for 5 weeks with little to no internet.

IO interest payments of $1,800pm is $21,600. On a $319,000, that is 6.8%

if you could refinance at say 4%, you would reduce your cashflow pain by nearly $9,000pa.

Is that a possibility? Wouldn't that help?

 

whats the saying???

"Opinions are like a $ s holes......"

 

wow, the bank must have put a gun to his head and made him sign the contract

how evil they are

 

the irony is astounding,

 

What's ironic, once a person is asking for help and has his bells in a vice I can't give him the best advice for that situation?

I am a wealth value investor and I don't like real estate agents or banks because I don't like sharing my wealth with parasites.

Nobody held a gun to his head. I agree.
I agree he should refinance now and hold.

 

Bob shovel I really like you , you are a real comedian. What would the forum be without you?

 

@Ald.. @Ems is female. When someone openly comments as a female and people just assume they are male.... shows a lack of understanding . Now if they don't say they are a guy or a gal fair call but she gave open comments...

@Angel's bought in Gladstone...
Sometimes it makes sense to cut losses and run. You can't keep losing money hand over foot. While it may improve that mightn't be for a few years. Better to do what's right for your own sanity.

Note I think @kierank's comment is very useful. If the interest rate can be at ~4.x% it will really help.... not sure why the interest rate being paid is so high (unless it was fixed at a very bad time)

 

1170 property owners trying to rent their properties and 2700 properties being sold is a lot of people to be conned. Its also a lot of people who must be homeless if the real estate agents are not leasing them to them. Do you think it might be possible that there is not enough people there to rent the properties?

Objectively, i would think that @Ems could sell the property at a loss, reinvest in a capital city like Brisbane and probably make her 150K loss back within 5-7 years pretty safely and remove all her emotional stress.

I like a good conspiracy, but i think you should go look at the fundamentals of supply vs demand. Properties don't struggle to get rented out if there is demand.

If you enjoy consipiracies, go check how Bush did 9/11. You can't melt steel beams with airplane fuel or office fires. You also cant make a plane go through a steel building, it should have splatted like a fly on a windscreen.

But yes, go invest in gladstone while its good value. Put your money where your opinion is.

 

Just went back to reread the thread.... @Ems, can you revert the loan back to IO?

 

Hi Kieran
refinancing means revaluing the property, as property market has crashed its going to be an issue, also the primary residence is in Perth another falling market unfortunately.

I think it takes a lot of courage to do what Ems is doing.

Angel had similar scenario as mentioned, good on her for making it work.



MTR

 

I would prefer to hedge on BHP or RIO shares rather than Gladstone properties if you think that the commodities' prices are so rosy in the future. Big banks have put a limit on LVR of Gladstone's property.

@Ald Are u an "arm-chair" investor?

 

I know that this is an old quote, but I'm in agreement with @Ald that holding might not be a bad idea.

Mortgage payments and rates come to about $25K a year, which means that the property could be held empty for six years for $150K. A cheaper loan would stretch that out to seven or eight. And that's without tenants making a contribution, or taking advantage of tax deductions. That's a good way into the agent's ten year timeframe.

It's no guarantee that you'll cap your losses, but losing $20K per year over six or seven might be easier to manage than $150K at once. Money is cheap right now, so take advantage of that.

A renovation might not be a bad idea. This place is on the market at $249K, which is substantially more than the agents are quoting.

Alternatively build a big shed in the rear yard...

 

The problem is its not just about the money, its also about the psyche/mental health, holding on to a property that is going backwards will be very hard to deal with and only adds stress today.

When a vacancy arises due to oversupply it will be a matter of how long it will take to rent out, more on going losses and stress.

There is absolutely no guarantees when this market will stabilise, that is the issue and in the meantime - stuck.

It may also effect Ems ability to service additional loans, therefore possibly missing out on opportunities today, you don't get that time back.

MTR

 

But what if Gladstone doesn't go back to the purchase price within 10 years? She'll be losing 10 years of opportunity, assuming its going to hold her back the whole time.

Om the other hand, if Em's is able to buy something that goes up from say 200k to 400k in that same time (somewhere else that also can be rented), she'll be back on track. Gladstone isnt going to help if it keeps sucking money out.

If she doesnt offload and she can't buy elsewhere... (no serviceability), she's stuck.

Anyway... on the bright side... a capital loss can be offset against later capital gains.

 

Yep... I was pretty much trying to express the same . Cut losses and start again someplace more positive