All Topics / Help Needed! / What can I do…

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  • Profile photo of dank78dank78
    Join Date: 2006
    Post Count: 30

    Ok, so what can I do to convince my parents and my long term partner that Property Investing is something to seriously consider?

    They are all pretty negative about it, so what can I do?


    Profile photo of lyndon_glyndon_g
    Join Date: 2006
    Post Count: 58


    try asking them to present you with a better way of investing. sounds like maybe they fear what they dont know?

    i guess all you can do is show them the facts and hope that they realise how many oppurtunities there can be.

    this is a hard one :)

    where are you from ?


    Profile photo of Mortgage HunterMortgage Hunter
    Join Date: 2003
    Post Count: 3,781

    Take your time. Talk about it often and try to get your partner to meet some other investors.

    If you try to push her she will push back. If you lead her she will slowly follow.

    My wife was the same when we bought our first place – that $50K loan was terrifying her. Now a $M loan wouldn’t phase her!

    Encourage her to read – Jan Somers is a good starting point. Steve McKnights first book is good too.

    Take your time. Drag her to some open houses and engage her in the process – ask her what she thinks is good and bad about different places.

    Above all respect her opinion – it is correct for her at this time in her life. She will come around.

    All the best,

    Simon Macks
    Residential and Commercial Finance Broker
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of WylieWylie
    Join Date: 2004
    Post Count: 346

    My husband was the same when we met. His parents advised us to get married, pay off our house and put some money in the bank. His father even did a timeline showing that in ten years, we would actually own our home and have a little nest egg.

    Of course, his timeline did not include the magic of a property boom, of which we have had a couple in my investing time.

    I got hubby to come around and we have a small portfolio of inner ring houses. We could have a lot more, but have made lifestyle choices which slowed us down. I have not been in the workforce for 15 years, and am loving being home when the kids are at school. We have also put money into our own home, which is tax free whenever we sell.

    We have worked like dogs on houses to turn them into silk purses and enjoyed doing it (even though at the time, we would have rather been sitting in a ski chalet or on a beach).

    Why don’t you show your partner and possibly her parents some appropriate threads from this forum and Somersoft. If you look them over and pick ones that will sway her in your direction, she may just be tempted.

    Just don’t procrastinate. In about 1977 my parents went on a trip to Europe. They were away nearly ten weeks. They had sold my grandfather’s house (estate – one third share to them) prior to going and spoke to a couple in Scotland about house prices in Brisbane. This couple were wanting to move here. My grandfather’s house sold for $29K and when they got back, the market had started to move. They reckon they could have got $45K when they got back.

    They quickly phoned this couple and said “hold everything”. Explained that houses were moving up in price very quickly. They had told this couple that with the money from their house in Scotland, they could buy a house to live in and one to rent in Brisbane. This had changed “almost overnight” and they sent off real estate magazines to this couple to show them that prices had moved quickly.

    It happened then, and it happened several years ago in Brisbane. The house next door was rented to a family who had just sold and were sitting, cashed up, waiting to buy their next house to renovate and make money on. They missed out on contract after contract and said that each month they were renting, houses were rising by at least $5K and it was nothing to have six or eight contracts on each house. They ended up renting for a year and their buying power was much less than at the start.

    So it does happen that things move very quickly and you don’t want to miss the next wave.

    The other thing is just do it on your own and let her see it working.

    Good luck, Wylie.

    Profile photo of dank78dank78
    Join Date: 2006
    Post Count: 30

    Well I cant exactly get into property investing on my own cause Im a full time uni student – hoping to find employment sometime mid year.

    If anything I wouldnt mind using some of the equity on my parents home. The house is paid off valued at $420k, so since its been paid off does that mean there isnt any equity available?

    IF there is I dont want to use that much.

    I been looking at some buyers agents cause since this is my last year at Uni, I need to keep a good high grade so I dont want the extra stress.

    Thanks for the reply guys

    Profile photo of ducksterduckster
    Join Date: 2004
    Post Count: 1,674

    !!!!!!!!!! YOU WILL MISS OUT !!!!!!!

    if you wait till mid year as employers pick the worst time for students to do their recruitment .
    I know as I have completed University and am signing up to be a mortgage broker after 3 years of trying to gain a graduate position .
    You will need a lot of time to go to employers graduation induction days in March / April/ May while you are trying to do university studies if this is your final year. Start looking at employers websites and go to any career days held at your uni from now on. They say it is like doing an extra subject.

    try to ask if your parents can borrow some of the equity through a line of credit on their house to lend to you rather than them going guarantee on your loan and losing their whole house.

    Try to paint a smaller picture to your partner like investing in one house and working on paying it down to a point where it costs nothing to hold then later on borrowing for a second house based on how much you have made on the first house over time.

    You may be able to convince her that you should have a house for the long term. One of the problems is people fail to plan long term and only see the short term picture rather than a 12 to 20 year time line.
    Property will take time to build wealth. it won’t happen over night but it will happen.
    Maybe you can get her to read API magazine or have it lying around when she visits or where you live together.

    Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of marg4000marg4000
    Join Date: 2006
    Post Count: 70

    “If anything I wouldnt mind using some of the equity on my parents home. The house is paid off valued at $420k, so since its been paid off does that mean there isnt any equity available?”

    My husband and I worked long and hard to pay off our PPOR (as well as having IPs) and I would be very disappointed if one of my adult kids felt that the assets I worked so hard to build up were simple theirs for the taking.

    From the sound of it, you have no deposit. I encourage your aspirations to get into property owning, but am concerned that you hope to do it by cruising by on someone else’s efforts. And where will the money come from to pay ongoing costs? CP properties are hard to find these days, and even if you do they are often older houses that will need considerable ongoing maintenance.

    Why not save like crazy and put together a deposit yourself? This will have the added benefit of convincing your parents and partner that you are serious and prepared to put in the hard yards. If you are still at uni then get part time jobs to kick-start your savings.

    Maybe your parents are negative for the simple reason that without a secure income, you are taking on an enormous burden by borrowing, that is, if you can actually get a loan.

    It’s NOT “now or never”, the prices people are paying now would have been unbelieveable to me 5-10 years ago. Prices cannot rise beyond what someone is prepared to pay.

    Disasters do happen, and every now and there there is a sad story on TV of an elderly widow (usually a woman unfortunately) about to be evicted because she allowed her home to be used as collateral for a loan by a family member.

    Get some solid savings behind you and you will find people far more supportive and your plans more realistic.

    As someone very wise once said “you CAN have everything, but you CAN’T have it all at once”.

    Keep researching and learning, your time will come. And concentrate on establishing your career, the income you earn will take you where you want to go.


    Profile photo of kjs_2kjs_2
    Join Date: 2004
    Post Count: 42

    Good points above. Could I just suggest that family and money are very touchy, and if you push too hard you may damage your important relationship. They feel secure in their paid off house, and if they are scared, then they may be very angry if you don’t drop the subject. they have everything to lose, and at this stage you have had a good education and will have good earning power.

    I agree that without an income just now, you may find the bank will say no anyhow. How about asking the bank, and then if the answer is no, you will not have to push your parents?

    I know you are keen and want to get rocking, but if you do wait until you are earning, and save a deposit then you will show that you are prepared to do the hard bit too.

    I don’t want to be rude, but your statement of “since its been paid off does that mean there isnt any equity available?” shows that you really have not done a lot of study, and I would suggest books as said above. Before you commit to a property it would be really good to have learnt a lot. Not every property makes money. The impression given can be that to buy anything will make you heaps. This is just not true and there are a lot of costs on buying, and even more in having a place sold from under you. Have you been looking for a positive cashflow property? Very hard to get at the current market as plenty of other topics on this forum will get into. Extra hard if you have no deposit, and by borrowing on you parents house, you have not got a deposit that does not need to be paid interest on.

    Please don’t be disheartened, your heart is in the right place, but you need to do the sums, and you may even have more sense of satisfaction if you do it by yourself.

    Best wishes for your future, and hoping you get a great job soon.


    Profile photo of dank78dank78
    Join Date: 2006
    Post Count: 30

    thanks for the replies. Great information and things that needed to be said I guess.

    I think I will just sit back and concentrate on uni this year. Read a bit more on property investing, along with my uni stuff. And just keep on saving with my partner.

    The savings plan is something that I wrote up and are now currently putting away $2k every month (hoping that will change to $3k – $3,500 per month late this year), will have a kity of $20k come March – however our target was $24k but still a great achievement.

    Once again thanks to all who replied.

    Profile photo of dare_to_dreamdare_to_dream
    Join Date: 2006
    Post Count: 88

    Hey mate,

    Looks like you are doing very well to be saving $2k a month? Can I ask what you are doing to be able to save that much a month and go to university?

    I graduated with a engineering degree in 2005 and if i’m a total tightass can save about $1800/month but thats in the months when I don’t have to pay car rego, insurance, sports registrations etc..

    I presume you are living at home living off your parents. Once you get a full-time job you might have to stop living off your parents so living expenses will go up (as I have found in the past year).

    Anyway, good luck. Setting goals in the first part of a long-term goal.[suave2]

    Profile photo of mark.hall00162mark.hall00162
    Join Date: 2007
    Post Count: 1

    If you are planning to positive gear show them that there will be no money being outlayed except for the initial deposit unless you plan to use your equity, once they see that you are making money without outlay I am sure they will lift the eybrows and get excited.

    Profile photo of dank78dank78
    Join Date: 2006
    Post Count: 30

    Well of course a good handful of the money saved between now and another 3 years will go into our wedding and honeymoon.

    But what we are doing is pretty much living at home with our parents. My parents travel frequently to the opal mine and spend a total 28 weeks a year up in the bush. So its up to me to keep the house running and look after the pets while they are away.

    So moving out and renting is not an option cause many places dont allow animals even for short term.

    We use to go away alot for weekends so that has been cut – Of course since my partner is the earner between us most of the saving is hers, however relationship wise, it isnt viewed that way.

    VOIP phone connection dropped the phone bill from $170 a month to $28 per month, that helped a great deal.

    Plus being the only child its much easier for me to stay at home and just save with my GF.

    Probably should look for a nice townhouse for my parents ahaha move them in there. [blink][strum]

    So yeh I want to do something with the money we have now and that allows us to chuck in $2000+ per month.

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