Selling PPOR to survive!

Discussion in 'Investment Strategy' started by davidc, 10th Oct, 2020.

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  1. davidc

    davidc Member

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    Hi, long time reader first time post.

    About myself 35 M from Melbourne, married with 4 kids.

    • 5yrs small food business owner trading only at large festivals and markets around Melbourne ( no shop only popup setup)
    • no work since March due to Covid, no outside large gatherings, everything cancelled until who knows, 2021 looks already over for festivals.
    • no other income only receiving jobkeeper, no employees and don't qualify for grants
    • 6mths mortgage holiday nearly over.
    • no luck finding any jobs as they want recent experience and I've got a big 5 yrs gap from last job.

    What to do?
    Is selling my PPOR to pay off mortgage, rent for the meantime with large cash sump to survive the best way?

    With the industry I'm in selling food at large outdoor festivals in Melbourne, the future doesn't look good with COVID restrictions. No income when JK finishes in 2021.

    Cut my looses and get out or any other way? Was always intending to turn PPOR into IP, but situation has changed for the worst.

    Any advise would be great.

    Regards,
    David
    Melbourne
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Do you have enough savings to pay the loan?

    Might be best to sell earlier rather than wait to the last min and suffer defaults etc.
     
  3. davidc

    davidc Member

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    hi. not enough to pay loan.

    Selling was our last option, but might be our only way.
     
  4. BunnyXiao

    BunnyXiao Well-Known Member

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    No family to help out? House swaps, house hacks, house sitting? Rent out your place and live in house sit somewhere? I've seen people do creative things like that. And I lived rent-free by providing meals and bed to international students in the past. Mind you I'm single no kids. Sounds rough but I'm sure you have skills that can be turned to something else pretty fast I think.

    Pop ups like in the doorway of a place where people pick up coffee and meals? Consult to others on T/A set up and building things like coffee stands fitted into vans for example. Dunno just spitballing to get you thinking rather than panick spiral
     
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  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes sounds like you have little choice if you can't pay the loan.
     
  6. MTR

    MTR Well-Known Member

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    So sorry To hear this

    If you have no other way to increase income I would be selling now to reduce stress and move on
     
    Last edited by a moderator: 11th Oct, 2020
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  7. The Y-man

    The Y-man Moderator Staff Member

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    Sorry to hear.

    Fortunately, I think liquidity is picking up with the RE market opening up.
    Where's the prop? Is it entry level or a high end?

    The Y-man
     
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  8. MTR

    MTR Well-Known Member

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    Yes hoping he can sell
     
  9. davidc

    davidc Member

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    thanks for the replys.
    location SE melbourne. Built early 80's , similar houses in area recently sold $690-$750K

    Yes, better to sale now before more supplies go on the market.
    2021 when Jobkeeper finishes for most people won't be good.
     
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  10. MTR

    MTR Well-Known Member

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    have you discussed this with re agents

    what is supply like??? Curious as some markets have low stock
     
  11. davidc

    davidc Member

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    Yes, spoke to local agent during the week and she had some clients come today.

    Overall had some good feedback.
    Agent mentioned overall people are holding on, just waiting to see.
    She did say best to list now while supply is low, than wait till next year when things get worst and everyone sells.
     
  12. MTR

    MTR Well-Known Member

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    Low supply is good
     
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  13. The Y-man

    The Y-man Moderator Staff Member

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    Good thing for you is that it is in the "affordable" range as far as melb goes - so I think you will do ok. Will you come out of it with some tax free profit?

    The Y-man
     
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  14. kierank

    kierank Well-Known Member

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    What if Jobkeeper is extended past March 2021? Could you survive?

    Tough situation.
     
  15. willair

    willair Well-Known Member Premium Member

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    At least you have a plan and the timing may be right as the economic model that has sustained Victoria may be evaporating in front of.most people's eyes..good.luck..
     
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  16. spoon

    spoon Well-Known Member

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    I think others have already talked about the selling side of things. Please stay sane and keep the family as one. Everything is external but inner strength comes from family and love. The kids are important too. Life will become better eventually and things will be alright in time. Best wishes.
     
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  17. The Y-man

    The Y-man Moderator Staff Member

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    Just to cover all possibilities, did you look for work interstate?

    The Y-man
     
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  18. MTR

    MTR Well-Known Member

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    problem is it is hard to stay strong when there is no clear exit strategy
     
    Last edited by a moderator: 12th Oct, 2020
  19. MTR

    MTR Well-Known Member

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    We are screaming for people in WA to pick fruit, And paying way above market price. Not sure how this would work though???

    moving Family to another State would not be an easy call.
     
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  20. BunnyXiao

    BunnyXiao Well-Known Member

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    I did that for nearly 10 years in AU. Had to move every few years. Go where the work is. Not easy but had to be done. Rented. Bought IPs. For myself I rented and rented rooms in my appartments to live rent free. I'm a fighter. Now OS and doing better than ever. But as this guy is 35 he's young and has years. I started at 40 again from scratch. So whilst this post is painful to read hes going to be ok long term. And wiser and plan better and made great connections here. Going through hell keep going is what I know. And I have 0 support whatsoever so if an oldie like me can do it...its going to be fine fine fine!
     
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