Hi All
Have been reading you guys for a while now and would love your feedback on my situation.Started my own company 18 months a go, new start company funded by private equity partner with high overheads in the first few months. Needless to say, year 1 resulted in a $100k loss, but we just started breaking even in Jan this year.(yeh!)…which means I moved back to my parents place last Aug to “survive” as best I could.
Started taking a small, but liveable wage in March with my loving parents providing their house rent free. Would not have been able to do it with out their support….BUT – there comes a time where obviously i need to stand on my 2 feet again.
My dilemna is that me and my partner (also business partner) are keen to move out in July much closer to work to get some privacy back, but also cut down heavily on travel time. (currently grinding out 15 hr days so being 20 min closer to work will be heaven!) Given the current property market (and us having no deposit!) we have decided on getting back into renting a property very close to work and just keep focusing on building up our business…. in the next 2 years saving up a deposit then buying. We figure that we won’t miss out on too much growth in the market (brisbane) and from our point of view is the smartest thing to do.
Would love anyone’s feedback on what they would do??? My parents can’t understand why we are going to “waste” money on rent instead of continuing to live with them and save deposit…
I am only 26 and my focus on our asset base, first and foremost is our business, which will give a good return in the next 18 months….
Ready and waiting…..
Cheers JO.
Hi Jo and welcome to the forum,
If owning/running a business and investing in real estate is first and foremost as your goal/s, then perhaps consider living with your folks? It’s a sacrifice that you and your partner are making (as opposed to renting/ owning your own home, etc). However, if your folks are that generious in letting you live with them (also without having to pay board/rent to them) then think how much per week you will be saving (for a house deposit?) each week? It’s a tough call, but if your’e concerned about what your peers may think then just ask to see their financial statement. If living at home is unbearable then I think that’s different. Try to think of the sacrifices you have made to build your business and apply that smame logic to the debate over whether to spen money on rent or live at home? In years to come you may think it was a very ‘intelligent financial’ decision in hind sight?
Best of luck,
Gatsby.“Sometimes the hardest thing to do in life is often the best thing to do.”
Hi Gatsby
Wow, it’s amazing how a few words objectively can make you see things in a different light… IT’s definetly a decision between logic and emotion… logically staying with my parents, saving a deposit in the next 6-9months then being in “both markets” or being able to go home to your own kitchen/laundry etc, having more flexibility with work hours (work from home) and having friends over without the embarrasment of mum and dad….. I honestly feel that i have busted my gutts to get where i am and want to start being slightly selfish (and emotional) but can plainly see that staying here is “smart”?Would love to have some more views…..
Hi all
It is a tricky question and regarding staying with your parents, I stayed with my parents in law when me and my wife first moved to Australia from Europe and it almosrt caused a divorce. However, haveing said that I was very grateeful for their help but for us it was never an option to stay there. In other words it very much depends on your situation and I mean both of your situations (you and your partner), make sure you really listen to eachother.
Rober Kioysaki says “Building a business is one of the most powerfull investment you can ever make” He built his business first and then he used the profit to invest in real estate. If you don’t know who he is, he is the guy that Steve went to a seminar with and then started investing in positive cash flow property. In other words he is THE man. You can go to http://www.richdad.com and have a look.
To me it sounds like you guys are really going for it and I am exited for you.
All the best of everythong and good on you
jb
Hi jb
Thanks for your input, definetly inspiring! Definetly heard of RB, have read numerous books of his, and steve’s, and mr sugar’s and heaps others… love reading!!!!I think (after very short hindsight…, sorry gatsby!!) that some privacy is just what we need! My frustration that i find, is that few people i deal with socially (namely few family and friends who’s financial statements are irrelevnat-thanks gatsby for reinforcing this!), they don’t have their own business, they can’t appreciate/relate the sacrifices i deal with. Definetely can’t complain as i chose this road, just their conflicting views challenge my thinking… i am always been strong willed!!
thanks again for all input and my 2cents worth is…
life is just a game, decide what part you want to play, then just do it!!!!
Cheers Jo.
Jo,
I have been in exactly the same situation a few years ago. I gotta tell you that yours is not a straightforward decision. On one hand staying with your parents gives you the ability to save as much cash as possible as your grow your business while on the other hand I imagine that you can’t `scratch’ yourself without the folks wondering whats going on. In my case it was the inlaws, so after six months I was just about ready to commit a serious felony!! If you can persevere, I would stay with the folks as long as possible. What we did was to use the opportunity to save as much cash as possible which we then put to buying a house. Three years on we’ve just bought an ip and will be buying another soon.
Good luck,
EricHi JO,
I can say that my partner and I are in almost EXACTLY the same situation as you (except we’re living with his parents, possible worse[blink]),
I’m also 26, and if possible, I would say that if you’re interested in property investing to stay with your parents for as long as you can in the short term.
By staying with my partner’s parents, we were able to save enough (taking each week’s rent we would have paid for renting and putting it aside) towards buying our first investment property – it settled on the 2nd of June (yay!!)- and has tenants in it until December 2005 – so we were still able to use the FHOG ($12,000 in Victoria) because we will move into it for at least 6 months in December.
My partner works full-time and I can’t work for VISA reasons, so I spend alot of my time with his parents – and we’re living in a rural area (I’m from Chicago!!) – so this has been extremely difficult for us (me!!), but I have a huge passion for property, so I’m willing to sacrifice now for our future.
All I can say, is that being in a similar situation as yours, stay with you parents and save that money you would have spent on rent to buy an investment property if that’s your passion. If it’s not your passion, get out as soon as you can or you will going nearly as crazy as I am lately!!
Cheers,
Jenthanks all!
appreciate everyone’s input!!! will keep you up to date… so from what i am reading there – i am thinking that there is no real growth in brisbane in the next 2 years…….(in property)…besides saving for a deposit (which is quite logical) what do others think about staying low out of the market???
Given that my business is my investment at the moment…. (where others might stay in jobs to get into realestate…. hope my point is making sense.)
if i want to live in a house/unit close to work that would cost normally $4ook plus, and only get away with paying $300wk, rent, what things should i consider… (to me rental seems a lot cheaper in cash at the moment for my return…..)
ps thanks again for your time…
Jo
PS = Jen, if you are in Brisvegas, would love to catch up for a coffee….
PPS – thanks heaps eric! (congrats on staying sane!!, i do find it hard to “scratch myself!!”)I feel I have to say something from a parent’s point of view. Have you considered that your parents may not be exactly thrilled to have you and your partner living with you? They ,too are making sacrifices to help you achieve your ambitions. Young people so often think they are doing the oldies a favour by inflicting themselves on their parents whereas in fact we parents also value our own peace and freedom and privacy. If you value your independence and privacy so much– well get going and make it on your own as so many of we Oldies have done. A little bit of understanding for your parents’ feelings would not go amiss.
I haven’t read any of the replies to your submission. I’m sure there are some great ideas and responses, and perhaps my thoughts have already been posted, but I’ll stick them here anyways…
Have you considered purchasing a Lease Option? That way you can rent it now and buy it in the future when you’ll have saved some cash for your deposit?
Just one thought I had…
Learn, Love, Strive. Make a difference!
Posted – 16/06/2005 : 17:03:14
I feel I have to say something from a parent’s point of view. Have you considered that your parents may not be exactly thrilled to have you and your partner living with you? They ,too are making sacrifices to help you achieve your ambitions. Young people so often think they are doing the oldies a favour by inflicting themselves on their parents whereas in fact we parents also value our own peace and freedom and privacy. If you value your independence and privacy so much– well get going and make it on your own as so many of we Oldies have done. A little bit of understanding for your parents’ feelings would not go amiss.Hi Magellan,
I only wish my partner’s parents felt the way you do, because the sole reason my partner and I are still living in his parent’s home is because of guilt. While it has given us a great opportunity to save up money to purchase our first property, I would give it up in a second to have the freedom to live by ourselves without the guilt trip that is placed on me everytime I suggest we move out (even if for only a month). My partner’s parents live on a farm and therefore need him there to help when he isn’t working (he works all the time, so hardly ever) and so now need me there to help and keep his mother company because his father is a truch driver who works 3-day straight shifts. I’m not judging them, as I can understand their reasons, but I wish parents would not ever guilt trip their grown children to remain at home (particularly when there’s spouses involved!), for everyone’s benefit.
Cheers,
JenI would personally do all that I could stay where you are and save up as much money as you can so that you can invest it. Sacrifice now and the rewards will come later. Obviously you will be driven mad but if you are in Brisbane, the weather is nice and there is nothing stopping you going to parks, coffee shops whatever to get away when you need to.
I have to rent because the people I lived with Grandma and seperately mum are dead. I HATE having to pay rent. What is worse is the other bills that are on top of the rent that you probably don’t have to pay at home. It is a nightmare. Focus on your business if it is at all possible is my opinion.
If you have to leave then leave there is no point going mad but if you can put up with it then I think you should try to.
Perhaps spending some of the money you are saving on a short trip away would make things easier.
Good luck
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