Jessica Rabbit Posted April 30, 2009 Share Posted April 30, 2009 My mum has just come into some money. We talk about HPI and HPC a lot. I've tried to open her eyes to what is happening in the market and what is likely to happen. My mum doesn't have a private pension. So... She wants to use all her inheritance, a couple of hundred grand, to invest in property!!!! Talking about buying a holiday let in the South or South West. After everything I've said about pricing out locals and buying in the first half of the HPC being not a great move... Just spent a whole afternoon telling why she shouldn't do it just now...still doesn't get it. I know she's my mum and all but what is wrong with people!?!?!?! Do I carry on trying? Possibly falling out with her in trying to save her financial ar5e. Or do I give up now and watch her pay the asking price for a depreciating asset? Quote Link to comment Share on other sites More sharing options...
council dweller Posted April 30, 2009 Share Posted April 30, 2009 My mum has just come into some money. We talk about HPI and HPC a lot. I've tried to open her eyes to what is happening in the market and what is likely to happen.My mum doesn't have a private pension. So... She wants to use all her inheritance, a couple of hundred grand, to invest in property!!!! Talking about buying a holiday let in the South or South West. After everything I've said about pricing out locals and buying in the first half of the HPC being not a great move... Just spent a whole afternoon telling why she shouldn't do it just now...still doesn't get it. I know she's my mum and all but what is wrong with people!?!?!?! Do I carry on trying? Possibly falling out with her in trying to save her financial ar5e. Or do I give up now and watch her pay the asking price for a depreciating asset? If she manages to turn 200k into 100k it's not the end of the world, at least she's not borrowing money to do it. I'd go along with it and help her to find the right place....might take a year...or two by which time things might be different. Quote Link to comment Share on other sites More sharing options...
DementedTuna Posted April 30, 2009 Share Posted April 30, 2009 Poor locals. Quote Link to comment Share on other sites More sharing options...
Jessica Rabbit Posted April 30, 2009 Author Share Posted April 30, 2009 If she manages to turn 200k into 100k it's not the end of the world, at least she's not borrowing money to do it.I'd go along with it and help her to find the right place....might take a year...or two by which time things might be different. A year or two. Do you know women? The money is burning a hole in her handbag! I should have known she be a numpty with her inheritance when she started buying expensive clothes on her credit card before it was even through probate... She's got a small mortgage (under £20k) on our family house. Guess what? shes not going to pay it off!!! She's just going to sink the whole lot into an 'investment' property. I think in this current climate, there is no such thing. I want to scream. Quote Link to comment Share on other sites More sharing options...
pokercola Posted April 30, 2009 Share Posted April 30, 2009 Its being British! We were all deciding how we would spend the money if we won Euromillions, you know the usual hookers, cocaine and champagne sort of stuff. Then my mate chips in with: "I'd just buy up loads of property cos its cheap at the moment" I sat there trying to explain why it was a $hit idea. He just couldn't understand. Quote Link to comment Share on other sites More sharing options...
AteMoose Posted April 30, 2009 Share Posted April 30, 2009 (edited) Hmmm you can offer to help, make sure she offers 30->40% below asking price, do ALOT of research, buy at auction. But if she wants to spend it she will spend it fast than you can say jack rabbit Edited April 30, 2009 by moosetea Quote Link to comment Share on other sites More sharing options...
Jessica Rabbit Posted April 30, 2009 Author Share Posted April 30, 2009 Hmmm you can offer to help, make sure she offers 30->40% below asking price, do ALOT of research, buy at auction. But if she wants to spend it she will spend it fast than you can say jack rabbit I am offering to help her. She's not reacting well or accepting the offering substantially below asking price thing (she's a homeowner and just can't see why you'd want to price in future depreciation in your offer!!) She's never had much money and this is the chance for her to be mortgage free, comfortable in retirement and happy. I really want that for her...or she could buy property in 2009... Will she or won't she accept my advice? I'll keep you posted. She's fully indoctrinated in the media ramping, 'prices may be dropping but not in my street' mentality, so if I manage to stop her making one of the biggest mistakes of her life I'll eat my hat Quote Link to comment Share on other sites More sharing options...
AteMoose Posted April 30, 2009 Share Posted April 30, 2009 (edited) I am offering to help her. She's not reacting well or accepting the offering substantially below asking price thing (she's a homeowner and just can't see why you'd want to price in future depreciation in your offer!!) She's never had much money and this is the chance for her to be mortgage free, comfortable in retirement and happy. I really want that for her...or she could buy property in 2009... Will she or won't she accept my advice? I'll keep you posted. She's fully indoctrinated in the media ramping, 'prices may be dropping but not in my street' mentality, so if I manage to stop her making one of the biggest mistakes of her life I'll eat my hat try and look for the auction threads, find the sold prices of property at auctions, and sell her the idea that she may be able to buy 6 houses with the inheritance and live like a queen! Sell it to her, shes right property is a good idea if you get a good yeild and a good return, look for the deals and calculate and concentrate on the profit she will earn On the psychology side you wont be able to change her mind, people 'discover' things for themselves, and ignore alternative views Edited April 30, 2009 by moosetea Quote Link to comment Share on other sites More sharing options...
nohpc Posted April 30, 2009 Share Posted April 30, 2009 I am offering to help her. She's not reacting well or accepting the offering substantially below asking price thing (she's a homeowner and just can't see why you'd want to price in future depreciation in your offer!!) She's never had much money and this is the chance for her to be mortgage free, comfortable in retirement and happy. I really want that for her...or she could buy property in 2009... Will she or won't she accept my advice? I'll keep you posted. She's fully indoctrinated in the media ramping, 'prices may be dropping but not in my street' mentality, so if I manage to stop her making one of the biggest mistakes of her life I'll eat my hat Hmm you're being a bit melodramatic. Owning a mortgage free holiday home is hardly the biggest mistake of her life. Buying in a crashing market is the best time to buy if you have cash. Quote Link to comment Share on other sites More sharing options...
Guest KingCharles1st Posted April 30, 2009 Share Posted April 30, 2009 Houston- YOU have a problem! I think you need to find where her "alternative" information is coming from. You will probably find it is from a close friend who bought in '95 and see nothing but ballistic upward movement. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted April 30, 2009 Share Posted April 30, 2009 Your Mother may well be going through grief - show her http://www.grief.com or buy her a book on grief by Elisabeth Kubler-Ross. Quote Link to comment Share on other sites More sharing options...
Garry AKA Pod Posted April 30, 2009 Share Posted April 30, 2009 Its being British! We were all deciding how we would spend the money if we won Euromillions, you know the usual hookers, cocaine and champagne sort of stuff. Then my mate chips in with: "I'd just buy up loads of property cos its cheap at the moment" I sat there trying to explain why it was a $hit idea. He just couldn't understand. If you win the lottery and have to pay for sex, you clearly haven't won enough. The Porsche or merely the fact you aren't still living with Momma and Poppa should suffice for free sex. Quote Link to comment Share on other sites More sharing options...
council dweller Posted April 30, 2009 Share Posted April 30, 2009 A year or two. Do you know women? The money is burning a hole in her handbag! I should have known she be a numpty with her inheritance when she started buying expensive clothes on her credit card before it was even through probate...She's got a small mortgage (under £20k) on our family house. Guess what? shes not going to pay it off!!! She's just going to sink the whole lot into an 'investment' property. I think in this current climate, there is no such thing. I want to scream. Oh I seeee, she's one of the unsaveable kind. My Mum was the same, when she died she left only a piece of land, she would have sold it (and spent the money on tat) but was waiting for the third generation tenant to die. (I not implying that this is about your inheritance btw!) SCREAM!! ........a then go with it. Quote Link to comment Share on other sites More sharing options...
Jessica Rabbit Posted April 30, 2009 Author Share Posted April 30, 2009 Hmm you're being a bit melodramatic. Owning a mortgage free holiday home is hardly the biggest mistake of her life. Buying in a crashing market is the best time to buy if you have cash. It's not exaggerating to say that wasting a pretty substantial some of money she's not had to work for, when she's been skint all her life, because she's been brainwashed by Krusty et al would be be a personal tragedy for her. Heartbreaking for me to watch too. There are clever ways of buying in a crashing market and silly ways (like just paying the over optimistic asking price straight out a la mum). My mum, bless her, is not going to make the shrewd decision without advice and help. I would like to think, having loitered on this site as a guest for years, and soaking up all the info and debate like a sponge, and being a ftb in waiting myself, I could be in a position to help. But after speaking to her today I wonder whether some people just won't ever 'get it'...may be they just don't want to. After all, I think accepting the end of the housing boom is a major cultural and mental shift for a large proportion of our population, including my mother, who truly thought it would never end, and she's lived through at least three HPCs before! Are people's memories really so short? Quote Link to comment Share on other sites More sharing options...
Garry AKA Pod Posted April 30, 2009 Share Posted April 30, 2009 Don't mean to offend, but this question needs asking. Are you more concerned because you feel you might not be left any inheritance? Quote Link to comment Share on other sites More sharing options...
johnny5thumbs Posted April 30, 2009 Share Posted April 30, 2009 Don't mean to offend, but this question needs asking.Are you more concerned because you feel you might not be left any inheritance? Uncalled for. Quote Link to comment Share on other sites More sharing options...
Jessica Rabbit Posted April 30, 2009 Author Share Posted April 30, 2009 Don't mean to offend, but this question needs asking.Are you more concerned because you feel you might not be left any inheritance? Absolutely not. My parents have been so skint all their lives, I never ever thought there would be anything for me to inherit! I knew someone once (an ex) who was forever counting up what he would inherit and telling me how much he'd be worth when his parents popped their clogs (even put little effort into his life because he perceived money to be coming his way in a few years), I found it rather vulgar, and promptly left him! I'm not that kind of girl. Quote Link to comment Share on other sites More sharing options...
Venger Posted April 30, 2009 Share Posted April 30, 2009 Talking about buying a holiday let in the South or South West. After everything I've said about pricing out locals and buying in the first half of the HPC being not a great move... Try and delay or worry her with the new complicated tax-changes for holiday homes? http://news.bbc.co.uk/1/hi/business/8013022.stm Even I don't understand them. Just keep repeating the danger-words such as tax, council tax, tax returns, accountant, voids, maintenance and repair, tenant damage, insurance. Quote Link to comment Share on other sites More sharing options...
Giordano Bruno Posted April 30, 2009 Share Posted April 30, 2009 Don't mean to offend, but this question needs asking.Are you more concerned because you feel you might not be left any inheritance? Uncalled for.I agree with johnny5thumbs. The question does not need asking, not at all. Quote Link to comment Share on other sites More sharing options...
Giordano Bruno Posted April 30, 2009 Share Posted April 30, 2009 Buying in a crashing market is the best time to buy if you have cash.Putting it politely, that is nonsense, not true, totally untrue. Quote Link to comment Share on other sites More sharing options...
pooh Posted April 30, 2009 Share Posted April 30, 2009 There seem to be lots of horror stories of tenants that do damage,cause hassle,don't pay the rent,can't get evicted for ages no matter all the things they are doing wrong.Can you search out a few of these on the various websites(seen some cracking one in the past on MSE),and print them off to show your mother. Quote Link to comment Share on other sites More sharing options...
scottbeard Posted April 30, 2009 Share Posted April 30, 2009 She's got a small mortgage (under £20k) on our family house. Guess what? shes not going to pay it off!!! She's just going to sink the whole lot into an 'investment' property. Madness, as you appreciate If she wants to spend an inheritance unwisely on a property ultimately it is her call, but you must at least be able to convince her to pay debts before saving - even just by directing her to moneysavingexpert.com Quote Link to comment Share on other sites More sharing options...
Jessica Rabbit Posted May 1, 2009 Author Share Posted May 1, 2009 (edited) Thanks for your advice everybody. I will try and put her off buying anything until at least the end of the year/beginning of next, and try to make sure, if she is insistent on buying a 'holiday let' type property that she goes in with her eyes open and lets me do the price negotiation/bidding at auction! Out of interest, if she is looking at buying cash, and wants something that will provide her a stable 'income' as a form of pension (on a monthly basis I'm guessing), would you say residential let (regular monthly income in theory) or holiday cottage let (able to charge more per week in season) is the way to go for her intentions? We need to make the best of a bad job here I think. It's a sorry state of affairs that even now, with HPC beginning in ernest, people who have had time off to have children and have never earned an average wage have little or no option than to invest in property for a high enough monthly income in retirement to get by. That's one of the things that caused this housing boom, and it's still happening. Shocking, and goes properly against the grain for me if truth be told. HPCrasher/proper bear's mother buys 'investment' property shocker...will I ever live it down!?! Edited for spelling! Edited May 1, 2009 by Jessica Rabbit Quote Link to comment Share on other sites More sharing options...
Jister1 Posted May 1, 2009 Share Posted May 1, 2009 Mum knows best. She brought you up to be so....erm...affluent! Respect her wishes and help her secure a bargain or two! What she is doing is sensible....I bet she has a long term plan and not dipping her toe for a quick return...she will be fine with a five year plan...allthough longer will bring a better return. Quote Link to comment Share on other sites More sharing options...
kara gee Posted May 1, 2009 Share Posted May 1, 2009 If she manages to turn 200k into 100k it's not the end of the world, at least she's not borrowing money to do it.I'd go along with it and help her to find the right place....might take a year...or two by which time things might be different. +1 If you can't sway her, just try to help her chose the right property and don't let her pay asking price. If it's an investment she wants don't let her heart rule her head. Last year I tried to dissuade some friends from buying a house in Devon (they live in Nicaragua, had a stack of cash, and don't trust the economy and the future of stirling). Needless to say they went ahead and bought a newbuild in a nice village called Chittlehampton it was originally marketed for £275k, they paid £200k cash for it and have a long term tennent in there now. So maybe it was the right thing for them to do at the time as they can just forget about it. good luck Quote Link to comment Share on other sites More sharing options...
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