Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    



Advice for my mom's retirement plan. (Hong Kong)

Reply to topic
Money Talk > Retirement Planning

Author Thread
Guppy2
Contributing Member


Cash: $ 8.20

Posts: 36
Joined: 26 Jun 2012
Location: Fullerton, CA
Advice for my mom's retirement plan. (Hong Kong)  Reply with quote  

Hi please help me out, I got some decisions that I need to make for my mom in the next few months. I am asking for advice because I don't want me personal emotion mixed with what is best for my mom.

I will give a little information about myself first, I am 28yrs old graduate student MBA (I know something about investment but like I said don't want any personal feeling mix with the decision I will make for my mom) with a good amount of net worth (80k+). Long strong short, I always been a big saver.

My mom on the other end is around 60 years old current resident in Hong Kong, she does not have much money in saving and I support her with few hundred $ every month or two whenever she ask so she can get by.

Here is the tricky part, she owns a store property in Asia. The value of the shop had gone up 100%+ over the past year alone. The situation was a bit weird (I will try to make this as simple as possible), she bought the shop back in the early 90's valued around $200k usd, the value peaked around early 2000 at 500k. However the government blocked the road and the value was patrolling around 350-400k.

The value of stores are extremely high in Asia, a same size store that's locate 2 miles down can worth up to 2-3millions usd. But since the roads were block the traffic were dead, and she was renting it out for $650 usd a month (shes living off this money and the money I send her). An painter end up renting it because he said it was quiet, I know the rent is a small ratio compare to the value of the property, but we know the value of the shop will go up.

For the past few years, I told my mom to hold on to the store until she gets certain offer. I told her hold out til an offer of 1m usd. The government just announced that they will start develop in that area again, and She just got that offer the past weekend, and she is asking me what to do now.

Here is what bothering me, I want her to hold out longer because I think the value will jump up. On the other side of me I know is not fair for her, because she is getting old and she would want to have some extra money to spend. I don't mind sending her more money each month, but she doesn't want to take any money from me. (She still worry that I am broke because I am not working at the moment and going to school. But I told her I have money but never mentioned it at around 80k).

If the store is under my name I will just hold on to it for a while. (is not like I can do much with the money anyway) But I want this decision to be the best for my mom. What I want is my mom get enough money from this deal, that she can retire comfortably.

I am be honest about this, I will be happy only I don't have to send her money anymore. She mentioned selling it so she can help me with a down payment here in the US, but it is not like the market in the US do well anytime soon. Also I just don't need/want her help.

Anyway thanks a lot for reading this I will fill in more info if you guys got some questions. I am sure I left something out.
Post Tue Jun 26, 2012 10:44 pm
 View user's profile Send private message
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

That's more than enough to keep her comfortable and secure the rest of her life. I think it's reasonable to sell now. And I think you'll both be pleased to have the pressure of the decision behind you.

Best wishes and good luck. Smile

~Tim~
Post Wed Jun 27, 2012 5:42 am
 View user's profile Send private message
sethm
Member


Cash: $ 3.80

Posts: 19
Joined: 07 May 2012
Location: United States
 Reply with quote  

I would have to agree with coaster. Don't wait too long, though there are no hard and fast rules when it comes to selling properties. Just curious, how did you come up with the valuation?
Post Fri Jun 29, 2012 7:16 am
 View user's profile Send private message
Guppy2
Contributing Member


Cash: $ 8.20

Posts: 36
Joined: 26 Jun 2012
Location: Fullerton, CA
 Reply with quote  

The million was an offer from a cash buyer. . . ... he started the offer at $5.5M HKD and last offer went up to $7.5M HKD, which is close to 1m usd. She had few offers around $4-5M HKD within the past few years.

I decided to make a visit out there within the next 2 months to get a better understanding of the market and walk her though it, since it is such of big decision. I started to research for the market around on the internet also.
Post Fri Jun 29, 2012 9:24 am
 View user's profile Send private message
HeidiLehmanan
New Member


Cash: $ 0.60

Posts: 3
Joined: 03 Jul 2012

 Reply with quote  

dont sell try to sort things out and if selling is the only option left do it but do not sell it in a hurry u might end up in loss!
Post Tue Jul 03, 2012 6:22 pm
 View user's profile Send private message
Iona99
Member


Cash: $ 4.40

Posts: 20
Joined: 10 Jul 2012

Advice for my mom's retirement plan. (Hong Kong)  Reply with quote  

Well! Here is about my opinion is that when you gone at the point of retirement. You must make a status at you can earn at your home. And you must no need to go at any office.
Post Sat Jul 14, 2012 9:13 pm
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      


Money Talk © 2003-2021