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Inheritance and Life direction question

Inheritance and Life direction question

Houses a great investment and security. The rent will increase in real terms with inflation, always ensuring you have a livable passive income stream.

You can also live in one of the houses, grow food and survive in a worse case scenario. You can pass the houses on to the next generation, permanent lifting your bloodline out of poverty.

For these reasons I recommend NEVER sell either of them.

Your job is to get the highest return possible. You are a property manager now, so learn your business. I don't mean spend money and go to college - you've already done that.
Learn to maintain the properties in a cost effective way, learn DIY. Learn about rental rates, how to acquire and manage quality renters.

Improve, maintain and look for opportunities to increase your return on investment.

All these still leaves you loads of time to start a side business (that doesn't require massive capital) if you want to make more money.
But you can live comfortably even if you don't succeed.

You are in the top 1% of wealth in the world and history, have a beer, sit back and reflect on how fortunate you are.

Don't waste it, don't blow it.

Good luck.

Inheritance and Life direction question

If you have too much money in your hands that fell from the sky and you have no idea what to do with it, you might as well give me some. I want to continue my studies and i need money.

If you are not going to give me anything, just notice how shitty the situation is in Europe, so go to the places that …. are not Europe. The EU I mean. Sure Switzerland is doing good on its own. There you go, invest in this country, for instance. They are not trying to genocide its population so it might be a good idea to have a third residence in that country. Also those mountains are very healthy to be around.

Inheritance and Life direction question

I would say hold onto the real estate assets you have and try to learn more about investing in stocks. Out of the $105,00 in cash you have been left perhaps consider investing $30,000 in stocks and $30,000 in gold (a good hedge/insurance) and keep the rest as a cash buffer. Additionally if you can save say $15,000 per year out of your current income and invest into into the stock market (and reinvest the dividends) wisely over a period of 10 - 20 years this will eventually create a meaningful source of extra side income.

As for people saying that the yields on your properties are too low you need to consider that in the current market dynamic, most "blue chip" real estate in the world (e.g. homes in well located suburbs of cities like Sydney, Melbourne, New York, London, Berlin, etc) is selling for low yields. Higher yields would generally mean shifting to second tier locations. Just like you should not expect a high dividend yield from an ultra safe and predictable company like Johnson and Johnson you would not expect a high yield from the most prime real estate. I agree with RatInTheWoods keep the real estate you have.

Inheritance and Life direction question

3.3% cap rate or rent yield is pretty normal for single family homes in a decent neighborhood in the costal us cities.

To get higher cap rate you have to move to mid west, south, or class C/D neighborhood(higher crime rate, rent defaults) or get into multifamily rental.

If rental management does bother you too much, you can consider 1031 exchange one of the single family into a duplex or 4 unit.

Also since you inherited the house you don’t have to pay capital gains tax on them if you chose to sell.

The asset you have is not enough for a family. You need $100,000/year for a family of 3.

Aside from the real estate advice. Watch Jack Ma video. He mentioned in your 20s joining a small company, following a good boss, learn try and fail as much as you can.

Inheritance and Life direction question

Whatever you do, remember your 1.5M will largely grow to whatever number in whatever time frame as a matter of luck, smarts, and hard work, in unequal amounts. And no matter how rich you are you can't control your luck or how smart you are or how big a factor they play or not.

Saying invest in this or that is meaningless. Might work or might not. They don't know.

What you can do is make sure your money is reasonably secure, reasonably diversified, and then use the knowledge that you are financially secure to pursue a high paying career with more aggression than what us poor people can muster.

If I were 23 with 1.5M it would mean picking a field, and spending 10 years mercinarily extracting all the knowledge I can from who I could, never allowing myself to get into a rut of performing grunt work for pay. Take jobs, use them for 6 months, then leave. Repeat. With a goal of becoming an ultra valuable person by age 35 who's knowledge is in demand to the tune of $300+/hr.
It's probably a good idea for any young man to do, but is a million times harder while trying to save up from zero and build a career, like most of us will do, and somewhere in there finding a good woman and having a family too.

In the choice of being a landlord because you happen to have been left real estate, getting "good" at that, whatever that means, and not having any marketable skills when you're 35, relying on your assets to sustain you... Or...becoming a willing participant in a modern complex economy with high value and high pay, plus millions in the bank, the latter is a surer bet.

If you had 10M, my advice might be different.

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