Updated: Feb 8, 2021
Individuals who have invested in residential properties have been experiencing considerable losses ever since the value of the properties fell considerably over 4 years ago.
de Jonge Read have been engaged by numerous clients to negotiate a settlement with their respective rather than enter into personal bankruptcy. An example of how we achieve outstanding results in debt negotiations was detailed in our last seminar series.
Despite the recent decrease property values in the mainland capital cities, house prices in these remote areas have had a slight increase. This has given some prospective clients hope that if they keep on soldiering on everything will be alright and they don’t need to seek help. This is a false sense of security as local Real Estate Agents and Industry Specialists have said the market will not increase enough in the foreseeable future to at least cover the amount owed on the property.
It is important to note, we are finding on average clients are having a shortfall between $400,000 to $800,000 per property with most clients owing at least two investment properties as a minimum.
Most of our clients also wish to retain their principle place of residence, and we are usually able to achieve this outcome, however, should investors leave it too late to come to us, it may be a different outcome.
We have found over the last few years, that to get a great result it is always best that the investors are referred to us sooner rather than later. If they believe that if they hold onto the properties, then everything will be fine – then based on our experience they end up being wrong.
Should you have clients or associates that you know are struggling with financial issues, our team of Strategists would be pleased to discuss options that are available on how to best design and implement insolvency strategies. Call us now on 1300 765 080.