Author Topic: Mortgage Problems  (Read 2624 times)

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CozA

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Mortgage Problems
« on: August 04, 2010, 08:33:03 AM »
So my family is having some money troubles with the house, ill explain...

My dad screwed his knee up when he was younger and never got it fixed,   and its a crooked knee now but hes still working but hes going to need   surgery (he'll have to get a plastic knee) and if it collapses we wont   be-able to pay the house off and the bank will take it and we'll be   homeless.

We're really struggling to pay the mortgage on our house, but my nanna  owns an old house and this real big backyard and shes getting old and  says she wants to be with the family instead of going to a nursing home.  So we're thinking about selling that whole backyard (could get 300-600  grand), knock down her old house and build a new double story house and a  small house for her IN THAT AREA so my family can move into the double  story to be with my nanna who would move into the small house. Meanwhile  we'd put our current house up for rent, use the money to pay off the  mortgage (plus our money from our jobs) and keep living in our  double-story house.

We're worried about my nanna's other daughter (my aunty) being mad  because if my nanna passes away she wont get anything from it because  we'll have her yard. We're hoping she won't be pissed, and this is the  only idea we can think of to pay the house off.

If we decided to do this (and selling the yard would give us enough  money to build), the house would take 8-9 months to build, which would  mean my nanna would have to live with us, & id have to share a room  with my fucking brother.

If you guys have any other ideas please post.


Quote from: BootswiththeFur;325933
Honestly, what you posted made no sense.

First of all, what the fuck is a granny lot?

Second of all, if you're broke, why are you going to build an entire new  house? Why would you squander the money you could possibly make from  selling land on destroying a perfectly good home, and then rebuilding a  brand new home in its place? That would cost hundreds of thousands of  dollars. Why not just take the money from the sale of the yard and pay  off your house (and then live in it?). If you have enough money left  over from the sale of the land that you can afford to pay off your  mortgage AND build a brand new home, then why not just take that extra  money and live off it until you can get your shit together? Then return  the money to your grandmother once you're back on your feet. If she  doesn't want to live in a home, then she clearly is capable of moving in  with you guys, as she'd have to live there during the construction of  the home. Hell, you could sell her house too and then have even more  money to float on until you're able to get back to work.

In terms of value-for-value, you'd be pissing a whole lot of it away by paying someone to destroy a home that you can sell.

So big whoop, you'd have to share a room with your brother. Better than living on the street.

Are you guys retarded or something? We're you planning on living off the  rent money? You'd have to cover property tax on two homes...did you  guys calculate this out? I mean, do you know how much rent you can  charge on your home? Do you know what the taxes will be on the new  home+old home+living expenses? How long can you survive on rent money  alone?

My second piece of advice is to get a fucking job and help your family out instead of playing Tribes.


It's my nannas money not ours (which you've stated), and if she gives us  the money she won't be able to get a pension, plus there are other  issues why she can't move from her house forever,
Get our shit together? We're going backwards as it is and we ALL have a  job, plus if my dad's knee collapses we're screwed. If we sell the yard,  build a house for me and my nanna on that area, put our current house  up for rent and use that to pay off the mortgage with money from our  jobs we'll eventually start making profit after about 5-6 years. We just  don't want to move from our house & neighbourhood & we're  worried my aunty will be pissed off.

No we'd all still be working + the rent money, atleast this way we're  safer than my dad's knee collapsing and us unable to afford the house.  Plus the house we build would be ours so we wouldn't have any mortgage.
Oh and we don't pay "property tax" unless we're thinking of different things.

If you're still too stupid to understand the process, here it is easy for you...

Sell nanna's back yard & knock her house down > Use that money to  build a double-story house and a smaller house for her so we can live  next to eachother > While living there, we put our current house up  for rent & get money out of that > We use the rent money and our  money from our jobs to pay off the house.
After that we can decide to move back or stay in the double-story.

All I'm asking for is some ideas or some support on this idea.

+ I edited it for you :)


Quote from: BootswiththeFur;325937
Maybe I am too stupid to understand your plan, because it still makes no sense.

If  she can't give you money, how exactly are you going to pay off your   mortgage from the sale of the yard, build two houses, and float   yourselves for a year during construction? Your whole plan hinges on her   ability to transfer money from the sale of her property to you to  cover  your debts and construction costs.

http://en.wikipedia.org/wiki/Property_tax#Australia

You  see when you own property generally the government charges you for  the  ownership of that property in the form of taxes. Given that her  backyard  is worth your mortgage + construction for two houses I'm  assuming that  the property taxes are not going to be low as the land  value must be  high. Taxes are proportional to value.

Maybe your parents have  somehow budgeted this all out, calculated the  costs and potential  revenue, and have deemed this risk acceptable,  because what you are  taking on is a massive risk, with a low rate of  return. Most landlords  don't make a whole lot of money off a single  property, or even multiple  properties (although granted most of them  pay a mortgage on their  properties). Nonetheless, there are lots of  costs associated with  renting out a property, including all those  taxes, and whatever repairs  and utilities need to be covered.  It was  mostly the case that landlords  made their money from the increased  equity of the homes they bought,  not from the rent. That is why we have  seen such a dramatic rise in  rental prices despite the flood of  'rentals' by people holding onto  their homes instead of selling them at  a loss (because the gradient of  home value is no longer 'guaranteed'  up, and everyone is trying to make  money / cover costs from rental  stream revenue alone)

The point  is, you're locking yourself into a very risky plan. The money  you put  into a home cannot be quickly/easily taken out, it is locked.  Real  Estate is not liquid, and the real estate market is anything but  stable.  You stand to potentially lose a whole lot of money. The risk is  high,  and the return is low. It would make more sense to take the  money from  the sale of the properties and invest it into something  else.

But,  do whatever. I'm just not sure you've actually run the numbers, or   assessed the risk. For example, if your father's knee blows out--what   the fuck are you going to do now? You have all your money tied up in   real estate. If he can't work, how are you going to live with no cash   safety net?

If you don't want to take my advice that is fine, do whatever. I just think its retarded as hell.

I don't think you understand and that's because I didn't explain it well enough.
There is no risk at all.
The 2 houses I said we were going to build will all be in one, and my nanna will own it so we won't have mortgage there.
The rent money we get from putting our house up for rent will go to the  mortgage of that house & the money we get from our jobs will go to  the principle.
After we pay the house off we'll be good.
Do you get it now?
I'm just looking for another idea that's all.

HuntZ

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Mortgage Problems
« Reply #1 on: August 04, 2010, 11:52:26 AM »
idk how it is in Australia.. but in the USA building a two story costs a ton of money and even a rancher costs a boat loads of money.. honestly if your having problems with money the best thing to do is to build one house that can accommodate everyone. Living below your means is the smartest thing to do.. gotta make sacrifices man...

heady

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« Reply #2 on: August 04, 2010, 05:07:18 PM »
ctrl-k
fuck off lol

CozA

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« Reply #3 on: August 04, 2010, 11:49:18 PM »
Quote from: HuntZ;325948
idk how it is in Australia.. but in the USA building a two story costs a ton of money and even a rancher costs a boat loads of money.. honestly if your having problems with money the best thing to do is to build one house that can accommodate everyone. Living below your means is the smartest thing to do.. gotta make sacrifices man...

I suggested that but a 1-story house is too small for us and we can't make it any bigger because her backyard wouldn't be ours and the area covering her house isn't big enough for us to do it (we measured it). Thanks for your input though.

HuntZ

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Mortgage Problems
« Reply #4 on: August 05, 2010, 11:58:01 AM »
no i was implying that if u were going to build a 2 story house.. why on earth would you build one for your grand mother. Couldn't you guys just make a room for her or something..

CozA

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Mortgage Problems
« Reply #5 on: August 06, 2010, 01:46:33 AM »
Oh, well we would but she's in her old ages and she says she wants to have peace and quiet sometimes, and then just walk over if she wants to come with the family.

HuntZ

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Mortgage Problems
« Reply #6 on: August 07, 2010, 03:08:58 PM »
well your already pretty much screwing her over.. so why not screw her over more.

CozA

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« Reply #7 on: August 08, 2010, 06:32:34 PM »
LOL how are we screwing her over?

tension-

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Mortgage Problems
« Reply #8 on: November 27, 2010, 04:20:58 PM »
It depends on how much money you get from selling the yard..  you said 3-500k but unless you get 500 or more, you won't have enough money to knock down a house and build a 2 story house plus another smaller house..  at least here where I live in the states you wouldn't be able to.  You'd be spending more than half of that 5 on your 2 story house, which leaves you roughly 200k to dismantle a house, haul off all the material, and build ANOTHER house on a new lot. (remember you're going to have to have all new lines run such as gas, electric, water, sewer + develop the land to accommodate a house)

If you're at 0 now and the only money you have to work with is what you make from selling the land, you simple won't have enough money.

If you end up selling the land and you plan on moving anyways, you might as well sell the land, your house AND your nannas house, and then find a home that is already built..  I'm sure you could find a home with a guest house that you could buy outright (and still have money left over).  You're making it too complicated.

and p.s. his aunt would be the one getting screwed..  not his nanna.
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Si

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« Reply #9 on: November 29, 2010, 12:54:49 AM »
Coza how old are you and your brother?

And who would be building the house? I know it takes a shit load of work and a lot of time. Expensive to bring in contractors but it seems like you all already have a job so I don't know when you'd find the time to work on a house. You probably wouldn't want your dad working on it with a bummed knee either.

Seems like a pretty sticky situation and it's kinda hard for us to help you out without all the details, plus no one here has a fucking clue what living in Australia is like in terms of the real estate business and mortgages.

Selling the land is going to help, but I think you shouldn't totally shaft your aunt and give her nothing. Help your family out and they'll help you out too.
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Comack

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« Reply #10 on: December 07, 2010, 09:52:54 AM »
Piece of Advice: invest in something.
 
I invested about 100 dollars in gold and by the end of 3 months I had nearly 2000 in my account. Helped pay for the collage I'm at right now.
War...war never changes. It\'s sad, that we as people cannot learn to benefit from its lessons, that our history inevitably repeates itself.

FriendRice

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« Reply #11 on: December 07, 2010, 10:16:28 AM »
sell your gold to glenn beck
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STFU AND GTFO
we already have plenty of idiots, faggots, gangsters, people who cant use their spell check, ex-convicts, drunks, smokers, gun toting hard asses, and old school tribes players. thanks anyways, though. go shoot an innocent bystander, you fuckin moron.

Lemon

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« Reply #12 on: December 07, 2010, 11:46:26 AM »
Quote from: Comack;332830
Piece of Advice: invest in something.
 
I invested about 100 dollars in gold and by the end of 3 months I had nearly 2000 in my account. Helped pay for the collage I'm at right now.


post a pic of the collage

I always had fun making collages



 

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