well its time for my first post on this board after reading 0-130 properties. My situation is a bit different in that our house that we live in now was purchased for my wife by her parents(b4 i met her). The house is valued at around the 280-90K mark and would have to repay around 100k to clear all debts(currently pay $200/week interest free). The problem is now with a growing family the house has become too small. Now i want to use the equity in the house to start a property investment portfolio using +cash flow model(having a hard time finding houses that fit Steve’s criteria) but my wife wants to do a knock-down rebuild on our current land and payout her parents, i.e borrow lots of money from the bank and have to work for the next 25 years to basically be where we are now except in a bigger house. Is anyone out there in or was in a similar situation? Should i just cave in and go the rebuild?
G’day kriscot, welcome to the forum. Hope you have lots of fun and glean something tangible for future use.
but my wife wants to…Oh O…there’s always a but…
Is anyone out there in or was in a similar situation?Yes and Yes.
Should i just cave in and go the rebuild?Yes and Yes. [biggrin]
Lifestyle now vs income and wealth later…the eternal struggle continues.
Hi Kriscot
I think you should “sell” your idea. Come up with all the facts and figures, and explain what YOU think is best. This would be a good exercise for you to do for yourself…just to make sure you know what YOU want.
I am a wife and Mum and I can fully understand the need for a home and to feel secure, but long term investments must be part of the big picture. That will make everyone feel secure.
All the best to you.
Truth is, kriscot,
without your wife BY your side you’re going to be fighting not only to learn everything you need to know, but also her attitude, her desires for a bigger ‘Nest’, etc, etc. So if you can’t get her on board then you may have to find another solution!
I fought my wife for nearly two years. The IPs were never big enough, clean enough, this enough, ra-ra-ra. One day something changed and bang she picked it she made it happen at our end (reduced shopping! lower expenses,etc) and now WE are on our way. She is more excited than me, hehe.Do some research and show her the difference in your cashflow with investing and future benefits etc. Look at different options like renting a larger house while renting out your home. that way the loan on your home is tax deductible AND she gets a bigger home for your family. talk to her parents to find out where they stand – perhaps her desire to pay them out is based on the fact that they need the money or want to use it for holiday travel or something.
Steve said in his book, find the problem and solve it! If all win who will be unhappy?
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonSell the house.
Rent a home sufficent for all the growing family to enjoy with all care no responsibility,
Sweeten the pot with the purchase of a moderately priced family vehicle,
Deposit the money from the sale of the home and organize a line of credit from the bank, ready to pounce on the pos properties you locate.Set a sensible time limit in which to buy “the family home”, because the reality is you would have to rent for at least one year anyway whilst building on the present site.
Once the family has moved , they wont be that keen to move again and as the cash starts coming in, the stress levels will lower and you are on your way
Good luck with the convincing, as this will work!!thanks for all the positive replies. I think her biggest worry is fear of the unknown…im a bit in the same way. Paying out the parents is not a huge concern as they are sitting quiet comforatble atm. Brady5 you have some interesting ideas there, are you speaking from experience? Calvin@34 you mentioned something similar but i dont believe that we would be eligable for the tax breaks as the loan is a private matter between mother/daughter. Can anyone direct me to some more info about this sell, rent buy IP’s theory?
BTW i did some searching on realestate.c*m and came accross agents offering retirement villas(cant remember where off hand), with the figures supplied gave a healthy annual +cashflow. What are peoples thoughts on these type of IP’s
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