tag:blogger.com,1999:blog-994439352371059425.post1304107721778066396..comments2014-12-11T02:23:20.953-08:00Comments on retiretravelsurf: Retire by 30Anonymoushttp://www.blogger.com/profile/07147320015536214676noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-994439352371059425.post-6291568171520035692014-12-11T02:23:20.953-08:002014-12-11T02:23:20.953-08:00Thank you for your reply. I'm from Belgium.
Th...Thank you for your reply. I'm from Belgium.<br />The average income with a high school degree & no higher education is €1,453/month gross or €1,234/month net. This is €14,808/year net (=$18,510), multiplied by 5 gives €74,040 (=$92,550). The average price for an apartment is €226,560 (=$283,200) and for a house is €354,276 (=$442,845), both are considerably higher. The monthly rental price is 0.313% (in 2009, I couldn't find a more up to date number) of the price of the home.<br /><br />So, concluding; the salaries are lower, home & apartment prices are higher, and relative rent prices are lower. This means you'll get a much lower return in Belgium compared to the US.Anonymoushttps://www.blogger.com/profile/15178521233856585076noreply@blogger.comtag:blogger.com,1999:blog-994439352371059425.post-45691561499431187722014-12-11T01:16:52.925-08:002014-12-11T01:16:52.925-08:00Hey Steven, thanks for your post.
I am 32, and ha...Hey Steven, thanks for your post.<br /><br />I am 32, and have been doing this for 2 years. So the 'theory' has a long way to go, but so far so good. I actually have more in my bank account now than when I stopped working 2 years ago. I will try to address your concerns point by point. If you'd like specific information about your country, please let me know where you live.<br /><br />1. Interest vs. Inflation: <br />S&P 500, Nasdaq annual return for the last 25 years has been ~6.5%, 8.5% respectively.<br /> (http://www.measuringworth.com/DJIA_SP_NASDAQ/result.php)<br />This beats all but ~40 countries inflation rates.<br />(http://en.wikipedia.org/wiki/List_of_countries_by_inflation_rate)<br />And that doesn't even matter because you will never need your own currency again, your accounts could be in USD, so you just need to beat the US inflation rate.<br /><br />2. PPP vs. Housing:<br />Finding the average income for all countries has proven to be easier than finding housing prices. I will just use USA as an example, but would gladly research your country if you follow up. <br />Average salary in USA $52,800.<br />(https://www.cia.gov/library/publications/the-world-factbook/rankorder/2004rank.html?countryname=United%20States&countrycode=us&regionCode=noa&rank=14#us)<br />After tax ~$46,000 * 5 = $230,000.<br />The average home in the USA is $189,000, here is a link to what type of house that can buy.<br />http://www.huffingtonpost.com/2014/03/13/median-home-price-2014_n_4957604.html<br />On average the monthly rental price is ~1% of the price of the home. So in this case you would be making about $2,000 a month, minus HOAs, property tax, and income tax.<br />http://homeguides.sfgate.com/much-should-charge-rent-house-8314.html<br /><br />So in USA it seems to work easily, for other countries I’d have to compare the average salary to home prices, but I assume the ratio between the two would stay pretty similar. But it doesn't really matter what the housing situation is in your country, just buy the property in a country where the prices work.<br /><br />3. Managing Property:<br />True, it is tougher than if I was next door. My tenant pays online, so that part is simple. In the lease they agree to give 2 months notice or find a new tenant, so far the tenants have preferred to find a replacement than wait two months. I have a spare key with a neighbor if they get locked out. If I need to evict them I could just move into the unit, and then move out and rent it again. I also keep it slightly under market rate so it doesn't go vacant, and is easy for tenants to find replacements.Anonymoushttps://www.blogger.com/profile/07147320015536214676noreply@blogger.comtag:blogger.com,1999:blog-994439352371059425.post-12657810091445945302014-07-23T08:11:31.023-07:002014-07-23T08:11:31.023-07:00(or having to travel back and forth all the time)(or having to travel back and forth all the time)Anonymoushttps://www.blogger.com/profile/15178521233856585076noreply@blogger.comtag:blogger.com,1999:blog-994439352371059425.post-6076566196229292992014-07-23T08:08:16.336-07:002014-07-23T08:08:16.336-07:00How old are you; have you done this or are you sti...How old are you; have you done this or are you still saving up to do this? Because there are some problems with your theory, at least in the country where I'm living in.<br /><br />Firstly, if you save 5 salaries over 10 years you won't end up with 6 salaries counting interest because inflation is (almost everywhere at any time) higher than the interest.<br />Secondly, with 5 salaries you can't buy and apartment in my country unless it's one that is half destroyed (by a fire for example) in which case the acquisition and renovation costs will be more than 5 salaries. You'll find a hard time buying a studio over here for 5 salaries.<br />Thirdly, an apartment or studio worth 5 salaries won't net you .25 salaries in this country.<br />Finally, I think it's really hard to efficiently let an apartment when you're on the other side of the globe. Over here when a tenant stops paying the rent you can't just evict him. You'll have to start a judicial procedure which can easily take up over 6 months, during which you have no income.<br /><br />The first three problems are easily solvable; since I'd clearly net less than .25 salaries I'd just have go to a country where the average living expense or salary is less than what I'd net. The last problem is, however, a real deal breaker since I might end up having no income and having judicial costs while having to live in a country where the living expense is high.Anonymoushttps://www.blogger.com/profile/15178521233856585076noreply@blogger.comtag:blogger.com,1999:blog-994439352371059425.post-21995582549993549852014-07-23T08:07:19.099-07:002014-07-23T08:07:19.099-07:00This comment has been removed by the author.Anonymoushttps://www.blogger.com/profile/15178521233856585076noreply@blogger.comtag:blogger.com,1999:blog-994439352371059425.post-6918283672114138572014-04-08T14:39:02.596-07:002014-04-08T14:39:02.596-07:00I work with your dad and he sent me this link to l...I work with your dad and he sent me this link to look at. I have to say, these photos and your travels over the years are stunningly beautiful. I am envious of your nomadic existence. Enjoy every moment. As I set out on travels of my own, Id love to get input from you, as you have and are going to many destinations I am eager to see. Hope all is well on your end of the world. Cheers, Meredithrem28merhttps://www.blogger.com/profile/16360470172860959742noreply@blogger.com