Lifestyle Real Estate Investing

[bartholomeus]

As I get older 100% digital nomad style is not really and full time option for me, however having 2-3 places around the world is my goal for many years.

My idea is to buy apartment in the place where I have residency and spend 6-8 mo/ year I want to spend 1-2 months / year in two/ three other countries. When I am not in the area I want to rent out on Airbnb and get the expences returned(One will be in a very good turist area).I can get the loan from the bank, just need to make sure that downpayment is large enough so in case there is some issues I can rent it out full time and will pay itself.

I already have one propery in my home country and now I am looking to buy 2 more - one in the country i am resident and another where i have family interest. Both in EU zone.

What would be best strategy to set this up? Should I own all on my personal name? if I want to get good loan it will be difficult through the company.

Does this strategy even make sense financially? I know renting is always possibility but always finding different apartment, moving my stuff back and forth after 20 years of this lifestyle is just not possible anymore.

 

[JohnnyDoe]

Does this strategy even make sense financially?

No

I know renting is always possibility but always finding different apartment, moving my stuff back and forth after 20 years of this lifestyle is just not possible anymore.

Buy all the apartments you want and enjoy them but don’t try to justify the expense with “financial sense”. Real estate is a drain hole for your finances.

 

[bartholomeus]

No

Buy all the apartments you want and enjoy them but don’t try to justify the expense with “financial sense”. Real estate is a drain hole for your finances.

Even with my example when I have to rent at least two all year around and I already spend some amount renting them. I case of buying I would be putting 25% downpayment and monthly instalment for the loan + costs would be same as I am already paying for the rent? I would also mentioned that even that loan payments could, when looking at both of the apartments together, cover the 100% loan and costs (especially if I stay out of the apartments in high season and rent over Airbnb).

Essentially I just want to switch from paying the rent to someone else to paying the loan to the bank and they will be mine in the future and can be additional source of income

 

[JohnnyDoe]

Even with my example when I have to rent at least two all year around and I already spend some amount renting them. I case of buying I would be putting 25% downpayment and monthly instalment for the loan + costs would be same as I am already paying for the rent? I would also mentioned that even that loan payments could, when looking at both of the apartments together, cover the 100% loan and costs (especially if I stay out of the apartments in high season and rent over Airbnb).

Maintenance, taxes, interests, headaches… all this to buy something for someone else to use most of the time

Essentially I just want to switch from paying the rent to someone else to paying the loan to the bank and they will be mine in the future and can be additional source of income

You are only making a favor to the bank, not to yourself, by doing this.

 

[bartholomeus]

You are only making a favor to the bank, not to yourself, by doing this.

can you elaborate or link me to another post if all this was discussed? What are the alternatives?

 

[JohnnyDoe]

can you elaborate or link me to another post if all this was discussed? What are the alternatives?

For example Rent vs. Own: A Real Estate Reality Check for Navigating Booms, Busts, and Bad Advice: Hodges, Jane: 9781452102535: Amazon.com: Books

Best alternative: invest the money and use the profits for renting or staying in a hotel.

 

[bartholomeus]

For example Rent vs. Own: A Real Estate Reality Check for Navigating Booms, Busts, and Bad Advice: Hodges, Jane: 9781452102535: Amazon.com: Books

Best alternative: invest the money and use the profits for renting or staying in a hotel.

Invest where? In my own business or investment in other instruments? I know more about real estate as i owned few (not at the moment) than for example some other investment instruments. I tried crypto and shares but did not gave me good returns (perhaps I'm just not doing it right )

 

[JohnnyDoe]

Invest where? In my own business or investment in other instruments?

In your own business, in yourself, or in some index etf

I tried crypto and shares but did not gave me good returns (perhaps I'm just not doing it right )

Perhaps

 

[jafo]

For example Rent vs. Own: A Real Estate Reality Check for Navigating Booms, Busts, and Bad Advice: Hodges, Jane: 9781452102535: Amazon.com: Books

Best alternative: invest the money and use the profits for renting or staying in a hotel.

I really could have used this nugget of wisdom 20 years ago!

PS. I would have been a billionaire by now! I mean, seriously. This is NO joking matter. This inconvenient & uncomfortable truth, i.e. my past ignorance, and the bad advice I received make me light up on fire!

@bartholomeus - Take note! Ignoring this has cost me so much money that it makes me sick every time I think of it today.

 

[void]

I would have been a billionaire by now! I mean, seriously. This is NO joking matter. This inconvenient & uncomfortable truth, i.e. my past ignorance, and the bad advice I received make me light up on fire!

come on , literally everyone can find such a "what if" point in his past

 

[bartholomeus]

PS. I would have been a billionaire by now! I mean, seriously. This is NO joking matter. This inconvenient & uncomfortable truth, i.e. my past ignorance, and the bad advice I received make me light up on fire!

could you elaborate more on your case so i understand it better?

 

[Deepbarrels]

I really could have used this nugget of wisdom 20 years ago!

PS. I would have been a billionaire by now! I mean, seriously. This is NO joking matter. This inconvenient & uncomfortable truth, i.e. my past ignorance, and the bad advice I received make me light up on fire!

@bartholomeus - Take note! Ignoring this has cost me so much money that it makes me sick every time I think of it today.

I don't know about your story (I wish you would share more of it!) but I would ve definitely been way more wealthy if I invested in real estate back in 2008. With a 50k cash down you could've made 200k in plus value within 2.5 years buying a condo downtown.

 

[bartholomeus]

I don't know about your story (I wish you would share more of it!) but I would ve definitely been way more wealthy if I invested in real estate back in 2008. With a 50k cash down you could've made 200k in plus value within 2.5 years buying a condo downtown.

probably eluding to the fact that he had some more stagnate investments - or better lifestyle properties where he hold money rather than invest in rental prop in growing markets, stocks, crypto, …

 

[Konstanz]

Well it depends how you buy real estate. If you buy with cash it can be good option if you don't want to spend out money... It stops a little bit of taking crazy business ideas.
If you buy with bank loan is not good idea in my opinion.
Renting main residence? I would never do this. This is my home. I don't want to rent it to others to spoil it.
Rent and live in hotel? Not option for me. I like to feel my home "my home". Don't have to deal with owners to put a new lamp.
It just all depends case by case and personal situation.

 

[volcanotnt]

Invest where? In my own business or investment in other instruments? I know more about real estate as i owned few (not at the moment) than for example some other investment instruments. I tried crypto and shares but did not gave me good returns (perhaps I'm just not doing it right )

In your way, i put all money in Btc for long term 5-10 year, and enjoy free time what you save with that invest.

 

[CyprusLawyer101]

Making real money from real estate is difficult, making headaches is easy.

 

[Paddyireland]

If you are interested in international real estate investing, a really good channel on YouTube is "The Wandering Investor".
He travels the world looking at property and investing in some himself. He goes through the numbers and everything.

 

[RobertNozick]

For example Rent vs. Own: A Real Estate Reality Check for Navigating Booms, Busts, and Bad Advice: Hodges, Jane: 9781452102535: Amazon.com: Books

Best alternative: invest the money and use the profits for renting or staying in a hotel.

You have a point but regarding Rent vs Own there's a breakeven sooner or later if you purchase real estate in cash (no mortgage).