Thanks AD (Andrew) for your reply,
I have taken your advice on board and will look into the equity issue further. My husband and I are primary producers and due to prolonged drought we are seriously considering purchasing off farm investments to enable us to meet our children’s education costs down the track.(Projected boarding school figures are $40000 each per yr x 5 yrs which is it out of the question from farm income!) When my husband raised the issue in general conversation with his parents, his mother said we could use the $120 000(inherited) equity she has in real estate in a regional city. She has no wish to do anything herself re: investing(‘too hard, ‘can’t be bothered’), we would have to do everything, however she has made the stipulation that she wants 50% of all profits. I realize that we would be getting a start from her generous offer of her equity but is 50% of all profits fair? If we were to not use that equity (and possibly not get a start), her investment would remain idle…
What is your opinion?
Many thanks, Shelly[?]