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NSW I need some advice

Discussion in 'Where to Buy' started by filip08, 24th Jun, 2015.

  1. filip08

    filip08 New Member

    Joined:
    24th Jun, 2015
    Posts:
    2
    Location:
    NSW
    Hi all
    I read this forum for a while and I would like to ask you for some advice from experienced people like many here.
    First, I am new to this and without much experience plus my English is not on high level so please be gentle and helpful, please.
    So this my story...
    I am 43 years old, married with two kids, I only work, my wife does not work due to commitments with the kids.
    I have a unit that I can sell it about 500 K maybe over but let say 500 K and I owe to NAB 335K.I used earn about 75-80 k so I was able to manage with the expenses with normal life but also without stress. But now situation is changed in the last 8 months, I earn a lot less than before and I am really straggling with the current situation.

    My plan is to sell this unit and to buy some town house or some cheaper house away from Sydney probably in Melbourne somewhere north about Epping area. I checked the prices and I noticed that I could buy some property in the area for about 350 - 400K, with that I would have about 80 K $ less credit than I have now, plus I will try to get better interest rate than this that I have now of 4.85. If I make it I believe I would be in much better position than now.

    But I see one problem, If I go there probably I will have a problem to get a credit because I will change the state to live so I do not believe that I can get a credit, they will ask for my job at least six months. I had short initial phone conversation with one broker, I asked if I can use the same loan like bridging loan so I would not ask for loan but he said that I can not do it because I am changing the state so they will ask for job again .
    Now I would like to hear some advice from here, what can I do get away from this situation, I believe there are many Investors with great experience.

    Tank you in advance
    regards
     
  2. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    2,716
    Location:
    Mornington Peninsula
    If you are planning to move to Melb to buy, what job will you be doing there?

    The banks will like to see some amount of history and savings to buy, etc so a new job won't provide enough most likely.

    It may be better for you to keep your unit in Sydney and rent it out.

    Move to Melb and rent as well for a while - maybe 6 months to a year - until the Banks can see your history - rent payments, income levels etc, then revisit the situation.

    By this time, you may be in a position to buy, and can decide whether to sell the Sydney property, or continue doing what you are doing in Melb.

    It will be harder to save another deposit to buy in Melb while you are renting of course, but at least you still have the Sydney property, which will continue to go up in value over the coming years.
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,781
    Location:
    Perth WA
    Are you currently paying principle and interest on your loan?

    If you are, maybe think about changing to interest only for a bit, just to allow you a bit of breathing room. NAB may not allow it but plenty of others will, especially at low LVR's like you have.

    At a minimum it could take the pressure off an not force a rushed decision.
     
  4. Beelzebub

    Beelzebub Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    570
    Location:
    Lost
    Interest only repayments 4.5% over 30 years = $289pw. If I was really stuck, in your position, and willing to move, I would:

    1. re-finance with an IO loan
    2. rent out my Sydney unit
    3. move, but not to Melbourne (unless you need to for work) I would go to a major regional area: in Victoria that would be Geelong, Bendigo, Ballarat Albury/Woodonga.Cost if living and quality of life would be so much better.
    4.Get avdice on the best way to do this.

    You could end up with more cash in hand each week and a better quality of life. And you wouldn't have to sell anything.

    Then, when settled and back on your feet, buy another IP with your equity
     
  5. filip08

    filip08 New Member

    Joined:
    24th Jun, 2015
    Posts:
    2
    Location:
    NSW
    Big thanks to all for your responds.
    Probably the best scenario will be if I re-finance this one in Sydney for better rate and and rent it out. In that case the rent will cover all expenses and I would go to rent other place in some cheaper area in Melbourne or maybe Geelong.
    After that, maybe some time latter ( in better scenario) I can buy another IP with my equity.
    This scenario is not bad at all,but only thing that I am worried is, in case if market goes down. I would not be worried if prices goes 5 -10 %, I am scared if happen real crash like 25-30%. If I lose 5-10% i do no really care for that, it is all gambling, I started with only 15K about 5 years ago. I bought one unit for 270K , than I sold it and bought the one I have now for 380K SEP 2013.