Feeling nervous

What does SANF stand for? Sorry if this is a stupid question

 

Does your loan have an Offset account or can one be set up for it?

It is far better to put the extra “payments” into an Offset than into the loan itself.

In this way, you have control over these extra funds, not the bank.

 

Sleep At Night Factor

 

Not stupid question at all. Sleep At Night Factor.

Personally I get the sense your solution shouldn't only be 'dollars' focused but also take into account what will be best for your emotional stability and peace of mind. From my own experiences I can say that even if i chart a course where i may come out a few dollars ahead in the long run, if it significantly compromises my emotional stability in the mean time then its really not worth it as that will impact my enjoyment of living on a daily basis.

 

Not advice. Just my suggestion/opinion .

 

Thank you. Just feeling super overwhelmed atm. I never bought the house with the intention of managing it on my own. Just a lot to process. Changing bills/accounts to my name, the lawn etc. It’s just an adjustment.

 

The bank is currently processing my new loan, and the money in my current offset account will be used as deposit for new loan. So I’ll need to build a buffer again.

 

It is a lot to cope with, especially since you have recently been through a relationship breakup.

When things get a bit much for me, I resort to my old favourite - making a list!

Write down everything that has to be done. It doesn’t matter how minor, or if there are 55 items on your list, write it all down. Once you can see clearly exactly what had to be done, start doing the tasks and crossing them off. Some will be quick and easy, some more complex (break these down into separate steps if you can).

As the old saying goes, “an ant can eat an elephant if it takes enough small bites”!
Marg

 

Good suggestion.

I would also suggest that one splits the list into four categories (especially if the list is rather long), namely:

A - important, urgent
B - important, not urgent
C - not important, urgent
D - not important, not urgent

and then start working down the list in this order.

 

@MissMel


I really feel for you and can relate to your situation. I found myself in the same situation many years ago when my x husband and I separated. I wanted to buy him out but the bank said I didn't earn enough to be able to afford the mortgage on my own so we had to sell and I just started investing again on my own after that.

I actually think leasing out part of the home is a good idea. If you can find some nice people to share with it may not be a bad thing it will take away some of the financial pressure you are feeling. If it doesn't work out you can always move them out. There have been some good suggestions made so far. I am not sure there is a right or wrong answer just whatever feels right for you right now.

 

Life is full of changes Mel,and there are only 2 kinds of money problems ..one you have to much the other you don't have enough..
There has been some very good idea's for you to work through ,from people a lot more experience then me and in six months time you will think what all the worry was about..good luck..

 

The PC Hospital is very close by and you might find that you can easily get your $200, and more, a week with short-term accommodation without having people there all the time. You could limit availability to say four set nights per week, which still gives you alone time.

 

Me and my partner live with a housemate and we’re similar age to you. It isn’t someone we knew (from flat mate finders) but it’s been ok. It’s a short term sacrifice we are making to help us get a head and something that we have set a time limit on (only 11 more months) but it has helped us massively! Not only the rent money but the splitting of the bills makes a massive difference too!

Another bonus in your situation, I’m not an accountant so don’t take this as fact, if you are renting half your house out then you should be able to claim half of all your expenses, interest rates etc. as well as depreciation which could be a big bonus come tax time. And because it’s already your PPOR you still wouldn’t have any Capital Gains to worry about when you sell as long as you don’t rent out part of your house for more than 6 years.

 

Just realise that feeling nervous is a very good thing. Feeling nervous means we think about consequences. It’s part of a success journey. I gathered that if a person doesn’t feel nervous, it’s either they have done it before or they are an idiot. Agree?

The most important thing is not to let fear control us and paradise us. I like the idea of lists posted above. As you cross something of the list, you should feel more and more confident. At least that’s what I guess!

 

I am not an accountant either but I believe that is not true.

It is my understanding that one will have to pay CGT on any gain on that percentage of the property that was rented for that percentage of the ownership period that it was rented.

Happy to be corrected.

 

I will be interested in an accountants response too. I believe the same as @Brendon ie no capital gains on a PPOR if less than 6 years

 

I did a quick google search:

Using your home to produce income

 

It's all just current noise!

 

Sorry it’s late but is one of those examples for less than 6 years?

 

I believe that only applies if you move out, rent out the property, don’t claim another property as your home and them move back in before the 6 years have passed.

The property is then CGT exemption for that period it was rented.