What is the greatest property lesson your relatives have taught you?

[Sunstone]

What is the greatest property lesson your relatives have taught you?

Dear guys,

We can all choose our friends, but normally we can’t all choose our relatives. For myself I often cringe when I look/hear what is happening with many of my extended family and what they do with property/money.

And yet they are vital to ensure that we don’t get distracted from our successful journey’s. We all have stories positive and negative about the lessons our relatives have taught/reinforced.


-What is the greatest property lesson/s your relatives have taught you?
-What stories do you have to share?


One quick story from myself. A relative of mine bought a house with her husband and continues to live there until this day. However she has now just finished with husband number three and is asking for my advice on how to avoid having to buy the house for the third time. (She has kept the house but each time she divorces she buys out the 50% share of the house that her husbands get each time she gets (re)-married.)

Lesson: Don’t get divorced. (Keep your partner happy). If you do, have a large asset, and are getting remarried then look at either: 1) Setting up a pre-nuptial agreement or 2) Have the assets owned in a discretionary trust setup in such a way as that it is a bloodline trust with appropriate wording or specifically has been worded/constructed in such a way as to have removed the husband as being one of the beneficiaries to protect yourself.

Other thoughts?

Cheers,

Sunstone.

 

[agent 86]

Lesson: Don’t get divorced. (Keep your partner happy). If you do, have a large asset, and are getting remarried then look at either: 1) Setting up a pre-nuptial agreement or 2) Have the assets owned in a discretionary trust setup in such a way as that it is a bloodline trust with appropriate wording or specifically has been worded/constructed in such a way as to have removed the husband as being one of the beneficiaries to protect yourself.

Other thoughts?

3) Accidentally spill Ratsak in the stew.

 

[geoffw]

The biggest lesson I got from my relatives was never get into debt- for anything.

After that, it was that there's nothing in property. (But shares might be OK).

I since found out that my grandfather did quite well out of property (speculatioj- buying land outside a devloping town- but by paying cash only). He had a comfortable retirement as a result (well, despite the stroke which stopped him cycling back to his job as a plumber's labourer at age 70+. He did not really get the chance to appreciate what his investments had done for him).

I'm in more of a hurry. I really don't want to have to be incapacitated to enjoy the fruits of my labours.

 

[Aceyducey]

The greatest lessions I've learn from my rellies re: property are:

1) Research your market thoroughly
2) Be prepared to hold for the long term
3) When renovating, make sure you know more than your tools
4) If you're not prepared to get your feet wet you'll never learn to swim

Cheers,

Aceyducey

 

[Kristine..]

What is the greatest property lesson your relatives have taught you?

and ...

She has kept the house but each time she divorces she buys out the 50% share of the house that her husbands get each time she gets (re)-married.

Hi Sunstone

Methinks your relative is being fed the wrong advice. Why on earth would she be obliged to give each passing spouse half of her pre-existing asset?

Does the incoming spouse take over the payments she is making on the new mortgage which she arranged to pay out the previous spouse? There has to be a clear reason for someone to receive benefit, not just because they moved in!

This time, perhaps she actually gets some advice which makes sense!

Regarding the advice from relatives question:

My parents bought a clinker brick 'Stockbroker' style house in Ivanhoe in about 1944 for (pounds)1,400 on a 30 year mortgage at 2.5% and steadily paid it off.

They never invested outside of this purchase but as the years went by I can remember my Mother being horrified when other people mentioned the rent they were paying. In 1962 my parents were paying (pound)1 per month off the mortgage, which was still a lot of money as my father was earning 6 Pounds, 12 Shillings & Sixpence per week to keep a family of six.

Their advice was to never rent, to buy as soon as you could, and to pay it off over the term of the loan.

When Mum left the house after 48 years it was sold for $250,000 and this money paid the bond on the Special Accommodation (there was plenty left over).

So the best advice was simple:

Buy your own home.

Cheers

Kristine

Trouble is, they didn't tell me not to buy other people's homes as well, or maybe I just didn't listen to that bit!!

 

[skater]

I learnt how to budget from my mum, who used to split her money into different glass jars for different items each week. She also had separate bank accounts for expenses (electricity, phone, etc), holidays, car expenses etc. This was in the days of no fees for bank accounts.

From my Husbands side of the family (he is the youngest of 7) I learnt quickly not to tell one family anything about IP's as the general belief is that only money hungry, greedy people buy more than one house. Having said that, there is one of my Brother-in-law's who does seem slightly interested at times, (although he considers it too late for him as he has now retired) and whenever we are asked anything by him always try to encourage him (he appears to be trying to influence his children that they should be investing).

 

[Peter_Tersteeg]

The advise I got from my parents and grandparents, was to always save some of your income to buy a house, then save some for a rainy day.

I must have screwed up somewhere, because I saved to buy other peoples houses, long before I saved to buy mine...

 

[Garry K]

The advice I had from relatives (and I have lots) about property was . . . . . . . . . . . . . .

Nothing.


And none that I am aware of own more than their own home - one aunty, age 60, is still paying hers off.

So far as I know, I am the first to have an investment property (now have 5).

Am I happier than them? Probably not.

Would I be happy to replicate them in retirement? No way. I just want to be able to have a bigger menu of things to do in retirement - and retire earlier.

GarryK

 

[Cosmo]

-What is the greatest property lesson/s your relatives have taught you?
-What stories do you have to share?

I come from a family of conservative property investors who been in the game since the late 50’s.
One brother especially has taught me that no matter how bad / peak of the market / poor or non-existent research / woeful yield / structurally stuffed / flood prone a property is etc etc over time you can make money out of it.
Goes to show that over the long haul property investment is very forgiving.

 

[Ecogirl]

My parents didn't get into property investing until later in life (last 5 yrs) with much prompting and help from me.

I have always been interested in retiring young from a young age - they thought I was nuts. I invested in shares and they told me I wasted my $$ until they worked out how much I made and then I made some $$ for them. They thought that was pretty good. Everything I learn I pass onto them - I do most of the research for them and help them to ask the right questions of their solicitor and accountant.

One thing my folks instilled in me from a young age was the work ethic. I was one of 5 kids on a single income for much of my childhood so $$ were tight. I learnt to save and get the rewards later. I distinctly remember saving my easter eggs for later (I think I was 7), my brother found them and ate them cause he'd eaten his - he still has a problem with debts for his toys (read ducati and cars). The rest of my family just love living for now and will work out their retirement plan later.

So now I think I'm on a good road to financial freedom - the ethics I have and the education level is growing by the day.

Ecogirl

 

[Gee Cee]

Save it yourself $$

I learnt from my parents that if you want to buy something you would have to save up and buy it yourself. At 10 I was buying other kids push bikes for around $10. Re-spraying them & selling at around $40.

Then it was cars. Then it was houses.

My father said I was crazy in 1979 when I paid $23000 for a 2 bedroom house.(Worth around $360k now).

He still thinks I am crazy.

Meanwhile @ 80 he will not go any where or do anything as it will cost money.

So the best lesson I learnt was If you want something you have to set what you want. Then plan it. then get off ya ass & do it. Even if ya fail heaps along the way you keep learning & moving forward.

I am still thrifty & luv a bargain and purchasing well. No matter what it is.

However there is No way I want to sit at home all my life because I have not even got enough $ to even go out for a nice meal.

If I had been spoon fed would not have had the drive & motivation to succeed.

 

[Sunfish]

My Dad lived through two wars, (served in France) a depression and two marriages.

I don't blame him for not being an optimist. In truth real estate probably was not the answer then anyway.

I saw the end of "the good old days" in the '60s. What is not widely understood is the poverty/debt trap of the era. Women got poor wages and were most likely sacked the day they got married. My mother, with three nursing certificates (she paid for the courses), never worked after marrying. Talk to some of your family elders and ask how expensive a fridge, mower, washer, stove, sewing machine were. My lady saved for a Singer for a year before we were married. (today you save for a year and have a deposit on a house) When you needed ANY manufactured item you went to Chandlers and signed up on the never never at a userous int rate. Buying a house was just a dream for many.

Be kind to your oldies. They lived in very different times.

Thommo

 

[Aceyducey]

I distinctly remember saving my easter eggs for later (I think I was 7), my brother found them and ate them cause he'd eaten his - he still has a problem with debts for his toys (read ducati and cars).

hmm - My kids have started saving their lollies for later now as well.

I'll take this as a good sign of their financial maturity

I can't wait to see what they will do with their easter eggs!

Cheers,

Aceyducey

 

[ger]

When I started my first job back in
the early'80s my mum MADE me buy a house
because she said that was the only way i
could save any money
If I was in debt rent also to help pay of morgage
looking back now i would have blown all my money
in electronic gadgets

 

[Bronte]

I was going to say that my parents didnt teach me anything about property...but I have learnt from their mistakes. Mortgaging the house to pay for an overseas trip that the family couldn't afford and then being forced to sell the house...definitely a lesson to be learned there!

Bronte

 

[perky29]

In late 88 my mum and uncle "told" me to buy a house (at aged 21) for investment after watching his terrace in Sydenham climb from 53k to over 100k in about 12 months......I did purchase several months later (forced my brother into going halves - he was 19 at the time)....kept tabs on exactly what each was paying. Bought a shop in Newcastle (Waratah) for 79k , rent high and they paid most expenses. We paid it off in 4 years - even tho interest rates were 17%.
Sold it in year 5 for 97k. Not much profit, but was an excellent way to make a young man be forced into saving money!!

 

[wish-ga]

thanks for "that"...but no thanks to "that"

My mum taught me to have priorities and that you decide where to spend your money...she was a single parent that chose to forego things so that she could pay for my education/braces on my teeth etc.

But what I say "no thank you" to is other people's fear. I am learning to listen to my ideas and things I learned in books and people who have done property buying. Am choosing not to tell family the nitty gritty of things as they all try and "help", which usually means telling you all the things that could go wrong.

People who have had the experience are far more empowering than those who were to scared to take the leap. So THANK YOU to all the people on this forum.

 

[DaleGG]

Hi

When I was a very little boy (yes, a bloody long time ago now!!) my grandfather used to say to me:

"Boy, they don't make any more land."

Funny enough, he was a builder before the war and never owned more than one house at a time....

I remember the lessons though.

Dale

 

[Aceyducey]

"Boy, they don't make any more land."

Artificial island arises off Dubai
http://www.spaceref.com/news/viewpr.html?pid=13560

Artificial island plan for Barrier Reef
http://www.guardian.co.uk/australia/story/0,12070,908390,00.html

Port Island - artificial island in Kobe, Japan
http://www.japan-101.com/geography/port_island.htm

Dejima - Artificial Island in the Bay of Nagasaki
http://www.japan-101.com/geography/dejima_artificial_island_bay_of_nagasaki.htm

Artificial Islands, North Caspian Sea
http://www.bechtel.com/ppArtificialIsland.htm

Largest Artificial Island
http://www.guinnessworldrecords.com/index.asp?id=54183

Some other artificial islands (by no means exhaustive):
Hong Kong
http://encyclopedia.thefreedictionary.com/Hong%20Kong%20International%20Airport

Japan
http://encyclopedia.thefreedictionary.com/Kansai%20International%20Airport

Netherlands
http://encyclopedia.thefreedictionary.com/Neeltje-Jans

Denmark
http://encyclopedia.thefreedictionary.com/Peberholm

Sealand
http://encyclopedia.thefreedictionary.com/Sealand

USA
http://encyclopedia.thefreedictionary.com/Treasure%20Island,%20California

Israel
http://www.newscientist.com/news/news.jsp?id=ns99993057

Cheers,

Aceyducey

 

[DaleGG]

Hiya Acey

I DID say that it was a LONG time ago.....

Have fun and thanks for pointing me in the right direction

Dale