Quote:
Originally Posted by Renato1
Your mate could do several things.
Sell the house, invest the money in managed funds, and rent in the same area with a much better lifestyle (5% of $2million is $100,000 income a year).
Or there are schemes around where one borrows money against the house to do as one wishes, and pay off the loan and interest on one's death.
Or live hand to mouth in a miserable existence, so that his heirs can whoop it up on his passing.
His choice.
Cheers,
Renato
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It will be the last option that you list ...for many of our era the family home is regarded as the property of the family... And in some cases even money in the bank is treated as belonging to the heirs...I felt very guilty buying my astronomy gear because I felt it was wasting money that should go to my estate...I seem to have managed the guilt somehow and to go somewhat overboard
The approach is best seen with farmers who mostly should sell up and live a decent life but its the family farm... grandfather owned it... Simply cant be sold.
Another chap up here .. he and his brother own 25,000 acres...even at $1000 an acre we are talking big money...sell it?..no never..they are fifth generation...they could make a much better living with the cash elsewhere..they could just live off the capital and leave a huge sum...and they work just so hard to generate income...both hate the place.
But tell me...how do you make 5% these days as I would really love to know.
Alex