How fast can you access your super?

@kierank, yup. Never good people lose money but then, like you, I've seen so many do so over the years and repeating the same mistakes, I've run out of tears. Even one of mine is estranged from the rest of us due to the continual pleadings for dosh. Always sad but it happens.

One of the unfortunate realities is adults have the "right" to screw up their lives as much as not. Both my late wife and I were well aware of that having seen others, including relos, go down the tubes for various reasons.

Whenever it was appropriate it was reinforced to our children as they reached maturity not to over commit with debt as it can cream you and to be cautious by taking little incremental steps. one took a different approach and isn't at all happy.

 

It does sound like a dire situation.

Do you currently have a positive net worth (ie the realisable value of your assets exceed all debt ) ? What LVR do you have ?

With the PPOR and the investments properties it is hard to tell - maybe a different broker might be able to access some funds.

 

Good on you for sharing Alex. Showing its not all beer and skittles and the need for risk management aren't always the theme of posts here, or at least the main focus.

A real lesson on the dangers of crossing up loans too.

Good luck with whatever you decide to do. Hope the lessons are well learnt.

 

I know.

The elephant in the room is that a full time public servant, which is great by the way, with one under water property in Perth, (or more) has buckleys chance of getting any finance, anywhere. Personal loan or what, credit card or what. The Know It Alls with a string of high equity properties in Sydney and Melbourne are probably not very sensitive. I can see plenty more holes in this situation but I dont think it needs to be pointed out on a public forum. Alex has a mortgage broker, a solicitor if she is selling, and an accountant being tax time, who can all talk reality to her in private.

Welcome to post APRA. My household has a combined income of $100K and over $700K in assets. We cant get finance. I know the stress I went through in 2016 trying to settle the sale of our underwater property. We had the equity needed but we had to refinance to a second tier lender. Suncorp held the LOC over our PPOR which had $300K in equity and we couldn't refinance with Suncorp. Try doing that today.

 

That is exactly what I would do if in the same situation today.

 

Sensitivity is not a solution - it is not going to pay the OPs loan. Practical solutions will go much further. The OP has kindly been offered both.
I wonder how many of these 'Know It Alls' have helped you in your PI journey?

 

Then no need to ask about accessing parents super.

 

God is the answer, pal. Pray to God and then Jesus pays the bills.

 

What has the op learned, though? You dont get to this state overnight. Not realising you have to repay a loan secured by the property your selling isnt bad luck. Saying 10k a year of saved rent by moving in with parents wont help is putting pride before financial reality. The shortfall should have been obvious a year or two ago. Cutting expenses to the bone would probably mean an extra 15k by now.

If the hard choices will affect your mind, dont invest in property. Having a team of experts only works if your honest with them. I feel sorry for the mb who had to listen to the client cry because they didnt understand how loans worked.

 

What abt roommate?

 

Hi

First of all thank you for all the ideas and discussion. It’s helped. I appreciate the advice.

Secondly there are some harsh judgemental people on this forum. I’m feeling attacked by some of you. You don’t have to be so nasty. Maybe it’s just the way you say it. Some may have meant well and were trying to be encouraging. I’m a good person. There is no need for it.

Ok yes I screwed up. Right from the start I’ve made mistakes. The High interest rates in 2011 nearly put me under. I had to move back in with my parents. I lived there for a couple of years to get back on my feet and invested again in 2014 thinking I was being more careful this time.

I should have educated myself better. You live and you learn. If I had my time over again I would have done things differently but I can’t go back in time. I had a good heart. All the right intentions. For the past 10 years I’ve been careful with my money not spending too much money on s*** to make sure I had the cash for my ips and any unexpected expenses. Unlike some aussies/lots of Aussie’s who spend all their money on doodads and live beyond their means.

It was the wrong timing. I bought in Perth in 2008 then 2009 and then again in 2014. I was going along nicely but then rents went down and I realised I was heading for trouble about a year or so ago. I was getting $390 pw rent for my villa and now it plummeted to $260 pw. I was getting at the height of the rent boom $340 pw for my inner city unit then it kept going down and now I was getting just $200 pw.

I realise not only do you have to factor in Interest rate rise you also need to factor in declining rents.

Going forward I can see that with appra I am going to have to factor in having to pay principle and interest so I’ll keep this in mind in two years time when my villas fixed rate ends. I may have to offload the villa if rents don’t bounce back soon as I don’t think I’ll be able to afford p & I payments. I’ll speak with my mb to see what my repayments will be if it comes to this and then go from there. This way I make an educated decision. See I’m learning.

On to the topic of my debt. My mum has kindly offered me half the amount which is not a gift it is a loan that I intend to repay. She has some cash reserves. I will get a second job to help pay off the debt. I don’t think it is as dire a situation. I’ll pull myself out.

Over the next five years I’ll be busy paying the personal loans off. Then I plan to pay down my ppor into my offset. Once that is paid down by a reasonable amount I don’t think I’ll want to invest again for quite some time. It’s time to batten down the hatches pay down the debts and also work on building an emergency cash reserve.

Yep and as suggested I think it was Marg I will be budgeting hard cutting discretionary spending.

Now I know why not many people post their failure stories and you only see the success stories... because of the treatment dished out by some. Anyhow when this is sorted I might post a topic in the investor stories section on my mistakes and a what not to do case scenario lol.

It’ll be ok. I’ll let ya know how I get on. Oh and I’ll be back after settlement to plug the company that did my staging. Showing my before and after photos.

 

Thanks for you idea but nope No can do...I’m living in a 1 bed unit.

 

Seriously - this is NOT about YOU ... this is about taking advantage of your parents by having them access their hard earned savings to dig you out of a hole you created.

This is about your parents - so stop being so selfish and make the hard decisions and take responsibility.

Sorry if this is harsh but I keep hearing "poor me" - I can't take a second job - I can't move back with my parents ... I don't want to feel - ... I worry about my - ... I can't rent our my place because - .... what about what you CAN do without compromising your parents financial future?

And yes - I have been there. Around 10 years ago we were stretched too thin and the market changed and I wept over my keyboard to SS as we were barely a month from crunch time - but made some hard decision and dug ourselves out, by ourselves, with no outside help and no one patting us on the back. We came out the other end $300k worse off but we did it by ourselves.

It's all about the choices you make and responsibility you take.

If you get a loan from your mother make sure you have the correct contracts signed up so she is covered. Best solution would be to move back with your parents, pay a reasonable board, get a second job and rent out your current place

 

Maybe I'm seeming harsh without giving the full picture ... this is us in 2004.

We had 11 ips and 1 ppor - undertook a development and market crashed literally 3 weeks before the development went on the "for sale" market ... we couldn't sell ... mortgage was killing us ... put in tenants who trashed the place ... maxed out the credit cards while following the market down trying to sell.

We could've easily buried our heads in the sand. Ended up selling all 11 ips simply to keep afloat.

Nearly had to sell the ppor and the only thing that saved us was hubby got a work transfer - work paid rent - for 6 months which enabled us to rent out the ppor for that period. Which would be no different than you moving back with your parents for a short period.

After that 6 months, we'd taken a deep breath, re-evaluated and started to get ourselves back on our feet.

Granted, we only physically lost $300,000 in the transactions - but the 11ips we had to sell would now be worth around two million more than what we sold them for - so the whole process really cost us close to $2.5mil in lost opportunity.

Hubby was 44 and I was 36 at the time ... yet we took serious stock and came back. It's not impossible to move forward, but you have to be realistic and do what HAS to be done.