Mom wants to borrow money to build a bigger better house. Is potentially going mental. - Page 3

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Mom wants to borrow money to build a bigger better house. Is potentially going mental.

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01-03-2010 , 09:10 AM

#51

Spaceship

centurion

Join Date: Mar 2009 Posts: 111

All I can say is only a plain moron would do this. Regardless of how good your relationship is. In fact, if it is that good, you won't feel the slightest uncomfortable being completely honest with her, right?

This all changes if she's like 50. But she's not, I'm assuming. And even then, >50% of your worth? No way.

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01-03-2010 , 09:36 AM

#52

Henry17

Carpal \'Tunnel

Join Date: Aug 2007 Posts: 27,710

Quote:

Originally Posted by idrinkmilk

EDIT: I talked to my dad about this a month ago. He became upset, said it was crazy, she is crazy and it's not going to happen. Then he didn't want to talk about it more.

That completely changes things.

In the same post you say Dad is on the fense and isn't interested because it is a hassle which is a minor against position which would make lending the money fine but you end with that he is very much against it.

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01-03-2010 , 11:55 AM

#53

grizy

Carpal \'Tunnel

Join Date: Dec 2006 Posts: 20,796

Don't get in between a fight between your parents.

That said, lend her the money, but ONLY if your father is cool with it.

I am assuming 400k is less than 10% of your net worth and less than 50% of your liquid assets.

If it's in the range where losing 400k or having it locked up semi-permanently (endless project delays on new house for example) for whatever reason would hurt you financially, then unequivocally tell her no.

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01-03-2010 , 02:16 PM

#54

fanmail

Carpal \'Tunnel

Join Date: Jun 2005 Posts: 32,698

Quote:

Originally Posted by grizy

His dad is NOT cool with it and 400k is over 1/2 of his net worth. This is a terrible idea.

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01-03-2010 , 07:59 PM

#55

Akileos

old hand

Join Date: Jun 2006 Posts: 1,337

Good luck with your mom and dad.

In my humble opinion, when people talk to you about large sums of money they are talking business. Business is a different realm from familial ties.

400k is a lot of money that you could use to invest wisely.

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01-04-2010 , 04:50 PM

#56

z28dreams

Pooh-Bah

Join Date: Sep 2005 Posts: 5,108

Quote:

Originally Posted by wubbie412

+1

OP, dont do it.

+2 and it's not even close.

It's a tremendous amount of your net worth that will only lead to major headaches.

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01-04-2010 , 05:25 PM

#57

BigBadJonV

old hand

Join Date: Apr 2005 Posts: 1,815

Odd thread. Feels like a level it's so off base with reality.

OP, if you are worth ~700k and are thinking of putting 400k into a piece of dirt, you are going to be losing a lot of money, even if you just plop it into a treasury bond, it'd be better than this.

Actually, that may be good advice, just invest it in a ultra-low risk financial instrument like a treasury bond (not sure if that would be best, but something along those lines, someone in this forum can tell you), let it earn you some money, and reassess in a year.

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01-04-2010 , 07:30 PM

#58

DogsBrekky

adept

Join Date: Apr 2008 Posts: 1,115

OP - your mother needs to downsize, not upsize my man

2. Never lend your mummy any loot

3. You are always broke... remember that

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01-04-2010 , 07:30 PM

#59

Karganeth

old hand

Join Date: Jun 2008 Posts: 1,305

Tell her to STFU and GTFO. Lending her $400k will almost certainly ruin your relationship with your parents. Lending is --EV not only in money value, but in emotional value.

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