Quote: (01-31-2016 04:15 PM)captain_shane Wrote:
Quote: (01-31-2016 04:03 PM)VolandoVengoVolandoVoy Wrote:
Quote: (01-31-2016 03:56 PM)captain_shane Wrote:
I like traveling and I like the finer things in life. So, I figure around 365k a year in passive income would be sufficient to do the things I'd like to do.
6,083,000 at 6% returns in Real Estate would achieve this.
I'd like to be able to pretty much pack up at anytime I feel like and go wherever the fuck I want.
Rent a ferrari for a week, cool.
Take a luxury cruise around the world, cool.
Eat out at the best restaurants daily, cool.
Go to vegas for a week and blow 5k, cool.
Travel around europe in 5 star hotels, cool.
Realistically, I won't be spending a grand a day, so the rest of it would go back into investing in more real estate to increase returns in the long run.
I want to be able to set up a legacy for myself and make sure that my future family and generations will never have to worry about money ever in their lives, they will be free to do anything they'd like; painter, musician, physicist, inventor, writer, etc.
How to resolve this? Family life and doing whatever the fuck you want don't seem to mix.
This is actually a real issue I'm starting to grapple with.
Also, how would you achieve your 6% return in real estate? Index funds/bonds/etc seems like more of a sure thing to hit 7% return a year over time (which in turn allows for 4% a year to spend, with the rest going to increase your nest egg to account for inflation and also to cover taxes), less risk, and doesn't require work.
I know someone who lost a very substantial amount of his family's wealth in real estate.
I'm nit picking a bit, I agree with most of your post and like your approach...I like nice things too.
It's not really that hard to achieve 6% returns in real estate. I was actually being pretty conservative. Find distressed houses at low prices and buy them for cash, fix them up and rent them out.
A buddy of mine recently bought a place for 40k, put in 40k fixing it up and rents it out for 1k a month. 12K gross - 40/50% in costs is 6k a year profit. 7.5% returns.
You can do a lot better than that in the midwest. My dad's probably going to pick up a place in the next 2 weeks which is 8K, probably needs 35k in repairs. Rent it out for 600 a month and you're looking at 8.5% returns.
Real Estate is way safer then Index funds. Just don't buy houses at retail.
If it's residential...whose going to do repairs when you are halfway across the globe?
When a tenant leaves or stops paying rent and your in Asia are you going to come back to get a new tenant or do you have someone else to deal with it?
I think real estate sounds a lot sexier than it is as it really can turn into a job.