I currently own a house with a mortgage. Otherwise debt free. 3 years out of training and on track to true FIRE (hopefully) in about 10 years. Practice most of the disciplines here. Max out retirement accounts annually. Contribute to taxable accounts monthly before spending blah blah. Live frugally.
I came across info on a tiny property being built (studio apartment in a luxury high rise) in a foreign city which I dream of one day retire in or maybe spend a few months there every now and then. To keep the math simple, it would probably be a 1m purchase. Requires 20% down (200k). Annual interest rate of 1.6% for mortgage. The builder has a program in which they will furnish/rent/maintain the unit with a contract for a minimum of 2 years, providing the owner with a 3% return of the property transaction price, in this case 30k a year.
I have never invested in RE but I always hoped one day I would (beside REIT funds). Yet I do not want to deal with tenants directly. I am highly intrigued by this deal because it allows me to possibly one day have a place to stay in this city, have a positive cash flow during the investment phase, not deal with tenants, and diversify/reallocate the earnings from the bull market. But part of me thinks I am crazy.
Without judging whether this is a scam or not because that's likely what comes to everyones mind first, is this something I can understake without destroying my FIRE plan? Does the math work? Is this even an appropriate question here?
I came across info on a tiny property being built (studio apartment in a luxury high rise) in a foreign city which I dream of one day retire in or maybe spend a few months there every now and then. To keep the math simple, it would probably be a 1m purchase. Requires 20% down (200k). Annual interest rate of 1.6% for mortgage. The builder has a program in which they will furnish/rent/maintain the unit with a contract for a minimum of 2 years, providing the owner with a 3% return of the property transaction price, in this case 30k a year.
I have never invested in RE but I always hoped one day I would (beside REIT funds). Yet I do not want to deal with tenants directly. I am highly intrigued by this deal because it allows me to possibly one day have a place to stay in this city, have a positive cash flow during the investment phase, not deal with tenants, and diversify/reallocate the earnings from the bull market. But part of me thinks I am crazy.
Without judging whether this is a scam or not because that's likely what comes to everyones mind first, is this something I can understake without destroying my FIRE plan? Does the math work? Is this even an appropriate question here?
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