Regardless of how successful and celebrated, you are today, we’re pretty sure you still remember the time when on being stuck in complicated situations, your reflexes would instantly switch towards your parents for advice. Ah, those were the good and easy times!
But here’s the thing – the times have changed.
Of course, the fact that children still turn to their parents for advice hasn’t changed, but what has transformed is what advice they receive from them nowadays. Surveys reveal that quite a lot of parental advice has started to become antiquated in today’s fast-moving world, especially when it comes to financial or real estate advice.
In this post, we’ll go through a bunch of financial strategies that your experienced mommies and daddies must have awarded you with. It may have worked out well for them, but that doesn’t mean it’s applicable in today’s time. In fact, if you keep on relying on such old-school advice, you may very well end up doing more harm than good.
So, without any further delays, let’s hop onto some absurdly incorrect old-school practices and find out what works best.
Misadvice 1 – Save as much as you can
How often have your parents asked you to stop spending on irrelevant purchases? Quite a lot, right? Your parents must have asked you to save most of your paycheck while spending only on the necessary stuff.
Now, TBH, even though this practice was extremely logical in the past, but it stands totally irrelevant in today’s world. Savings make sense only if you’re earning a good rate of returns on them, either through interest or through investments in assets like real estate. If that’s not the case, you’re just wasting your resources.
Misadvice 2 – Make low-ball offers
A terrible piece of advice that most parents give their kids is to put a low-ball offer on potential properties, something that’s way less than the asking price. Now, you must be thinking what’s wrong with that?
It is this – realtors not only find low-ball offers absolutely ineffective, they also sometimes get offended by them. Parents who are still advising their children to use this tactic have no idea how the current competitive market works.
Therefore, it is best to stick with modern-day real estate advisors as they’re well aware of the market and have a clear idea of what works and what doesn’t.
Misadvice 3 – Trusting your parents blindly
Sam Massaudi, a Strata agent, shared an experience with a client where he was forced to pass a place that he loved just because his parents didn’t approve of the scuff marks on the walls.
That silly reason cost him $11,000! And unfortunately, he had to lock another property instead of spending $1,500 on repainting the walls.
Points to remember
Your parents aren’t your enemies. Their intentions are never wrong, and all they want is the best for you. But they as well as you need to understand that sometimes their decisions can be pretty hardwired.
And in our POV, it’s all because of their disconnect from today’s scenarios, especially in the finance and real-estate market. This is exactly why we advise consulting a certified realtor before making any property-related agreements.