How fast can you access your super?

I’m just going to have to take on another job as well. I really have no option. I worry for my health though.

 

But if you are living with your parents for free, how are you not better off getting additional rent from your PPOR?

Your parents loan you money.

You enter into a loan agreement with them, to record that it is a loan not a gift, and the terms of repayment to your parents.

Better yet, if your existing mortgages permit it, you grant a second (unregistered) mortgage to your parents over your other properties, to secure the loan.

That way, if you go bankrupt down the track, and by luck you have built up some equity, they have a chance of being paid ahead of your unsecured creditors (obviously the banks who hold first mortgages will be paid first).

You really do need some professional advice, but I suspect you'll say you can't afford it. At the least, your parents should get some advice to protect their downside if it all goes bad.

 

Thanks. @hammer You don’t happen to know the number or have a link to the website do you? I’m on leave right now so I’d be able to go visit someone.

In the meantime might have to see if buyers would be ok with me delaying settlement by a week so I can sort it out.

Ok I think the super idea is a bad one then if that’s the case. I won’t go there.

 

I’m happy to pay for professional advice. I wouldn’t know where to go though. I’ll have a look at that site hammer mentioned.

I’ve really dug a hole for myself. Hopeful I can dig myself out

 

Probably better for your health than the anxiety related to not being able to service your loans!

 

I don’t think I could handle living with them again. And I don’t want to sponge of them living free with my parents. That wouldn’t feel right. I don’t ever want that feeling again.

Maybe I just need to dig myself out of this hole like some have been saying and leave my parents alone. I’m strong enough. I’ll keep positive

 

That can’t be correct.

Even if you get $150 a week, that’s money that you wouldn’t have otherwise! Over a year it would really contribute to your repayments.

 

True.

 

It’s not ‘sponging’ if you pay for your food and share of bills.

It sounds like you are willing to get your Mum to access her super, but not willing to do something that would cost your parents nothing (assuming they would be OK with you moving in). It is also much less risky than the other options.

You know what they say about ‘desperate times calling for ...’

(Note - you would need to get your place valued first if you rented it out - as I understand there will be an effect on capital gains tax concession from the rental period if you ever sell).

 

It would be a good move financially but a backward step for me overall. I need to learn from this mistake and take responsibility. Last time I moved back when I got in trouble I felt too co-dependent. I don’t want to feel that way again.

Perhaps this was just the wake up call I needed. I’ll see just how strong I am to overcome this setback.

 

I thought I had to be over the age of 60 to do that though

 

I tend to think that moving back in with your parents is ‘taking responsibility’. Especially if it lets you pay them back faster.

I understand it would be a challenge to go back as an adult - and many don’t get on with their parents - it just sounds like you have a good relationship with them and it could be worth a shot.

 

I wasn’t aiming to be harsh. Property investing is a high risk activity. Things go wrong, things crop unexpectedly, things cost more than one expected, income can drop at absolutely the worst time, ...

This is all part of the game. One shouldn’t reduce their finances to “the smell of an oily rag”. One should always have sufficient reserves, either in cash (say in an Offset account) or via credit (LoC, credit card, ...).

One of the many things I have learnt from this game is that banks will throw money at your when you don’t need it AND refuse to help when you desperately need some.

Nope.

It is not only battlers who cop it bad. I have known many including:

1. My in-laws who went bankrupt in their 50’s when a property transaction went horribly wrong. They came out of it with a beat-up old car and a few possessions (in the car). I still think some of the actions of the banks were very questionable (where is a Royal Commisdion when you need one). That was 30+ years ago. Probably the only positive thing that came out of it was that it was a great education for me on risk and what can go wrong.

2. Two business acquaintances who went belly-up and ended owing $12M to creditors. Yes, they made some bad business decisions and I stilll disagree with their financing arrangements. In my eyes, the banks certainly weren’t squeaky clean and ditched them in a “blink of an eye” when the **** hit the fan.

3. A young couple who are expecting their first baby, have maxed out three credit cards, are struggling to meet their lifestyle expenses, wanted the bank to transfer their card debt to their mortgage but were refused (in fact, the bank have now stated that they wouldn’t have approved their mortgage, given their current financial situation), ... This has been going on for a few years now and is like watching a slow train wreck. They desperately need to cut back on discretionary spending but refuse. When they moved into their new house, they threw a big house-warming party and bought a whole stack of new furniture even though they already had sufficient, when they found out they were pregnant, they threw a big “reveal” party, they want to to have their baby in the private system but are stressing out with the bills, ...

I have made some bad financial decisions in my life (even heading into depression due to financial stress) but I was lucky enough to dig myself out.

No silver spoon here. I always leant from my mistakes and the mistakes of others.

If my post came across as harsh, then I apologise. I pray that others learn from the OP’s experience and this thread.

 

I know you didn't mean to .

 

If you can't handle harsh realities, you shouldn't be in the game. Playing victim doesn't lead to success. Both gradiosity and the victim mentality are delusions.
As you can see from other forum members, it's not about income, it's about ability. It's also about who you listen to. If you get taken in by all the sugar and spice and everythijg noce, something ugly is going to happen.
Alex is a full time public servant. She's doing very well, thank you. How did she get into this mess? I'll leave the answers to you.

 

I’m not sure how helpful this advice is for Alex who already has a couple of Perth properties. (Horse. Stable door.).

Sometimes we don’t know what we don’t know. Even taking and paying for advice isn’t enough to avoid a decision that turns out to be bad.

However, I agree that all is not lost, Alex has a full time job and she has options.

 

I'm responding to Angel. Alex is another matter way out of my league. Good luck with all your helpful suggestions.

 

Hi Alex
I think everyone would like to see you pull yourself out of this situation. People on here are offering many options for consideration - in the hope this can help you.
I would like to say - you are NOT a kid. You are 46 years old.
It is not about people living in glass houses either. People giving you a perspective you don't want to hear is probably more helpful in the long run than those genuine well-intended sympathetic people who are supporting you (enabling you).
There is genuine concern for your parents also - beyond this 30k. Will they eventually lose all their super bailing you out? How does that help everyone?
Taking responsibility is doing what you have to do not what you want to do. That may be renting or selling the PPOR and moving in with the folks.
Your comment re - mental hospital. That may be how you feel - I just hope your parents don't feel guilted into helping you.
What would you do if you didn't have your parents? What decisions would you make?

 

These problems are from lack of knowledge (not understanding cashflow, not understanding mortgages, security), bad property choice and market and just being unrealistic. This is still happening. Theres a good case here for not getting into property at all, or just buying one and not buying another until paying off the first.

Easy to comment in retrospect. If this had happened in sydney or melb it would be totally different.

 

Back to basics.

@Alex P Keaton

A couple of things to do.

Get your parents to contact their super fund and find out times and ways to withdraw, if that is chosen as an option. So long as they are of an age to make a withdrawal the process should be straightforward. For me it is to simply lodge a form (online or in person) and the amount appears in my bank account a couple of days later.

You: have a talk to your bank. Easiest to go into a branch and talk to a real person. Put all your cards on the table. Find out your options. It is in no one’s interests to have you fall further into trouble. Communication is the key.

Don’t faff around, settlement is approaching.

Once sorted, put your head down and pay off the extra loan (whether from parents or bank) quickly. No coffees out, no drinks on Friday, no holidays, tax return ALL goes off the loan, buy nothing new unless absolutely essential, live as frugally as possible until paid off. It’s amazing what you can do when you really put your mind to it.
Marg