We're Facing Bankruptcy

Scott,

My husband and I followed all the Barefoot steps. We saved $40,000 and got into Sydney's property market in early 2024 using the 5% deposit scheme. Not long after settling, we discovered why the apartment seemed affordable. There were serious waterproofing issues, and our strata fees jumped from $1,500 to $2,500 per quarter. Worse, from the first night we realised we were in a terrible neighbourhood. The noise was constant. When we tried to talk to neighbours, we got late-night knocks and harassment. Our young children were terrified. After 1.5 years we couldn't take it anymore. We rented elsewhere and listed our apartment. Five weeks later, no interest. We're paying both rent and the investment loan. Our agent wants us to drop the rent per week $150 below market. If we sell, we'll break even but be locked out as Sydney prices soar. If we hold on, we risk bankruptcy.  What would you do?

Sally and Rod

Hello,

In which Barefoot Step does it say to take out a loan with a 5% deposit?

You didn't follow Barefoot, you followed Albo and his dud policy:

"Only Labor will help you buy a home right now!"

And you did!

So, what should you do now?

Stop listening to politicians who are poking your FOMO for votes would be one idea.

Another would be to take responsibility for your own decisions.

Let me hold up a mirror:

You rushed into buying it. Now you're rushing to sell it. See the pattern?

Here's my hunch: I think the two of you know what you need to do. So, book a Barefoot Date Night for this coming week and get a realistic gameplan on where to go from here.

That's Barefoot Step 1.