My parents just lost a 2 million dollar house due to financial mismanagement, and a downturn in their professional field (mostly financial mismanagement). I found out recently that they had been living the last 30 years waiting for a “big break” while consistently eating into their home equity at the rate of about 100,000 a year. Luckily they live in a place where property was booming, and managed to get out with about 300,000 cash in profit.
They have no 401K/superannuation, no real business prospects (both in their 60s), no savings except for the $300,000. They have $200,000 tied up in an investment property which is steadily increasing in value. They are desperately trying to get that money back (which I think is a bad idea, because history tells me they will blow through it, and then actually have nothing).
One of them qualifies for about $400 a week in pension money (but refuses to see reality and refuses to claim it), and the other has to wait about 3 years to qualify. They pay $200 a week rent (extremely cheap, from a friend), and $500 a month to store everything that was in their $2M house. They spend a lot every week buying food and fairly unnecessary things like notebooks and chocolates.
They’re pretty crazy, and have been just kinda sitting in the rental for 9 months now not even knowing what to do. I want to present them with a step by step plan on how to get back on their feet. Houses here cost a lot (decent ones starting at 400, 000), so they want to buy a property for $200, 000 and build a granny flat on it for $100,000. This isn’t a bad idea, as they’re in the building industry, and property in this area is continuing to increase.
If you guys could help me with a plan, I’d really appreciate it. Even being able to present them with some options from other people and advice would be great, everyone else in the whole family has given up on them.
Submitted October 13, 2017 at 06:34AM by tumbleweedtwix http://ift.tt/2ylvSHS
