Help my investment property is killing me financially

One call I made to a customer was mid afternoon. I spoke to his daughter who informed me that they had a property up in QLD that was costing them money and was slowly sucking them dry from the financial perspective.

The Value of the property was buy the bank $265K.
They recently had an offer 2 months prior for $270k.
The Total cost of for them to exit the property was $285k b/c they had a fixed interest rate with the bank previously on an interest only mortgage.

Add on to this the additional owner corporation (previously known as Body Corp) fees, land, water and sewage rates the Vendor was out of pocket, the interest payments and the Vendor was out of pocket upto $20k per years. The vendor saw this investment as a heavy financial burden that was dragging them down.

I was able to provide a solution which if you cut to the chase allowed them to cancel out their out of pocket expense of $20K per year and have the property sold on vendor terms and reduce the risk to the vendors property and themselves.

Therefore the buyer was happy, the vendor is happy.

If you are in a similar situation or know of someone who is then contact me ASAP.

I can solve the problem.

Call me on +61.418538094 if outside Australia or 0418538094 if inside Australia.

My Name is Andrew McFayden
I'm Here to Help.

looking for Investors

Concerning both Overseas and Local investors inside Australia.
I am not sure what the markets are like in other parts of the country but due to the incredible (Don't miss the sarcasm here) foresight of Past Political members we now have a proverbial Land Shortage.

Any Land that was available previously was classified as green wedge and could not be legally developed. So previous people purchased these then relatively non profitable areas of land and waited 10 or so years .

Fast forward to the present and we now have a large population and not enough houses. This has been gradually getting worse in Victoria till the government finally started to see the problem about to explode all over them. In fairness this has been ignored by most governments to date until it can no longer be swept under the political rug. It is going to take a long time to resolve this issue:

taken from Real Investment Property
"Monday, 03 May 2010 00:00

Residential property prices are set to rise even higher as supply continues to fall to intractable levels.

The National Housing Supply Council (NHSC) found that the shortfall of new housing across Australia jumped by 178,400 from 78,800 more than a year ago. The NHSC had only expected a 23,000 supply shortage over the same period.

"The extent of undersupply in the housing market has worsened significantly over the past year. And if action isn't taken over coming years, then by 2014 Australia could face a housing supply gap of over 300,000 dwellings," said Craig James, CommSec chief economist.

"The new projections should sound a significant wake-up call to state and territory governments. Clearly it's now up to state and territory governments to practically respond to the findings in the latest report. The bottom-line is that the Reserve Bank can't solve the housing crisis by lifting interest rates. This only would serve to temporarily depress demand and reduce incentives for investors and developers to increase supply."

Paul Braddick, head of property and financial system research at ANZ, added that because Sydney is by far the most significantly undersupplied, it will see prices continue to rise despite worsening levels of affordability.

"The fact of that of the national undersupply, half of it is in Sydney, it's going to take a long time to turn this around. We expect housing shortage to get worse over the next five years and it's an underpinning factor for price growth, which is going to be pretty strong," said Braddick."

Bidding wars are now common place in the rental market. Foreign investors have purchased only a small percentage of land and even then this has been in the upper end, more expensive part of the market. Dispite the media spin that there is a 100 million tied up with foreign investors what they did not explain is that if you have the average of 4 million dollar properties then you have a total of 25 wealthy foreign buyers who own potentially holiday homes in TOORAK.

Now if it was 1,000 acres that were held in foreign hands this would equate to approx 4,046,856 square meters or 6,744 blocks each approximately 600 square meters in size. Now consider that there is currently a 200,000 house supply shortage. You start to see the potential.

House prices will continue to grow over the next 5 years. Rental demands will likewise continue to grow in Victoria.

House/Land Availble -
The first resort style residential precinct in Lynbrook and one of the fastest growing suburbs of Melbourne's South East.

Set amongst an established area, these stylish quality two bedroom, two bathroom homes with open flowing floor plans are a must to inspect.

The residents will have access to a heated pool, sauna, spa, steam room, fully equipped gym, BBQ facilities, cafe/restaurant and plenty of recreational space, not to mention the added security with closed circuit TV and secure electronic gates.

Close to public transport, local primary and secondary schools, Monash University, Chisholm Institute of TAFE, Lynbrook Village shopping centre and easy access to the M1 freeway. This will be the only release of 2 bedroom homes on the estate, and with this stage almost sold out, you don't want to miss out on this opportunity.

Contact Andrew McFayden
0418 538 094
+61418538094
andrew@mcfayden.info