Getting out of a bad investment joint mortgage

Yes this is a very good mindset if there is a bottom in sight for the market. But with the population shrinking, government broke and local economy in recession.. not sure you'd want to be in that market as an investor regardless of entry price, especially if it's costing you money to hold. Values could keep falling for a while yet.

 

The bottom is when things look the worse ...your comments suggest it is the worse.
There is a old saying "buy in soon sell in boom".
Take off the principal and other items and reassess how much it is really costing you remembering that if you sell you will still need to pay off the mortgage and other cost.

 

We're at or very close to the bottom now. There are fairly defined prices where things get sold

Don't beat yourself up over it. I remember what it was like then and you made the right call at the time... Rents were bat-poo crazy, and prices were just rocketing up and up and up.

An elevated place is probably the best of the bad bunch in terms of what property to hold. They still rent really well. You'd be surprised!

Thinking outside the box here..What if instead of buying you out, your sister bought another property?

She can buy a 3br now for 350k if she does her homework. This will be about the same as paying you out but now she has 2 properties instead of one. Banks tend to like this.

She moves out into the new place and you both rent the top half of the house out for $400 pwk. That plus downstairs = $700 per week income.

You guys go see a broker and (with any luck) are able to move your loans over to Interest only. That would mean total repayments are around $600 per week. You'd still be a little negatively geared once you factor in PM fees but it certainly wouldn't hurt you a whole lot in terms of cashflow.

They don't make elevated houses anymore and, although it might take a loooong time, you will get your equity back.

In the meantime you're not bleeding money or have converted your paper loss to a real lo$$.

Disclaimer!
I am by no means a pro with this stuff, just a Darwin local who is living in the same environment as you...

Good luck with it!

 

I saw this yesterday, as a reminder that it can be a fantastic place and will be again one day if history moves in patterns of any kind

Is the Darwin property market about to bounce? - Smart Property Investment

 

Hey thanks for the advice, but the problem is she doesn't have any savings or assets, if she did i believe we could just re draw the loan in her name after she paid the new deposit which would be 80k or so i would assume. Think i'm just going to wait it out and hope for the best. Will be interesting to see how Darwin preforms this year!

 

what exactly was the plan when you two bought this?

 

To avoid paying extortionate amounts of rent, and instead invest our money into a property.

 

At the time @Trainee this wasn't a bad plan.
The rent was off. The. charts.

You really had to be here to understand.

Honestly I reckon it'll be pretty flat. I think we're done with precipitous drops for now ..