Rule #4: don’t buy a big house if you want to retire early

[@SecretIntent123]

im 27 and used all my savings to buy a property outright in eastern Maine. I did want to get a smaller piece of property for maintenance purposes, but I figure I have plenty of space to grow into it and I don't have to pay rent. Taxes are about 350$ a year.

[@RetireearlyNYC]

Excellent!

[@patrickvernon4766]

Very true. Recently moved into my van. Lol

[@RetireearlyNYC]

Van life? Very interesting!

[@pahanin2480]

My mans forgot to calculate capital gains tax from the stock market. Selling a house isnt taxed if certain conditions are met

[@hz240]

Wise advice and rules to live by. Exercise the frugality mindset religiously and invest. 👍
Also, the key is not to fall asleep on the cushy job as watchdog. 😁

[@RetireearlyNYC]

@@hz240 doing a video helps to keep me awake ;)

[@Emilyleestrong]

Good perspective on investment strategy 👍

[@RetireearlyNYC]

Thanks!

[@DrLusEnglish]

I guess retirees should buy a big house with multiple bedrooms for income sources. Most average retirees will have trouble to maintain their house if they have a small house or condo.

[@RetireearlyNYC]

There are other easier ways of making money without living with tenants

[@dolphin19721000]

Read more books on real-estate investments. Owning property is best investments ever.

[@RetireearlyNYC]

@@dolphin19721000
We did it from 2009 to 2019. And read extensively. Read for a whole year before buying 4 properties in Bk. :)

[@RetireearlyNYC]

@@dolphin19721000
It was a lot of work. But well worth it, IF you do it right (which 90% of mom and pop owners don’t)

[@buckbreaker5185]

Good video

[@RetireearlyNYC]

@@buckbreaker5185 thanks !

[@ArchiBiH]

You are forgeting rental income on houses that can be 10% plus house price rise

[@RetireearlyNYC]

Not forgetting. Whole separate topic. Rental vs home. I will address rental properties in future posts :)

[@RetireearlyNYC]

And rental income can be 10% or 0% or 20%. Depends on the house, apt, area, etc. But if you’re getting 10% ROI on rental cash flow, that’s pretty good. :)

[@ArchiBiH]

@@RetireearlyNYC Well 5-10% on rental ROI is usual, also 8-10% on shares is very good if you can guarantee it.

[@RetireearlyNYC]

@@ArchiBiH
Nothing is guaranteed. But the S and P had historically grown at that rate over the last 100 or so years, and close to 15% over the last 15 or so years. No guarantees. Just odds.

[@RetireearlyNYC]

@@ArchiBiH
So are you saying 5-10% ROI based on your initial investment? Just curious. Different people have different ways of calculating their ROI.
For example, if you put $100k down (plus closing, Reno, fees etc,) you’ll get $5000-$10,000 per year ROI?

[@byron9630]

Thanks for this vid. Would you say it’s better to invest in the S&P, or some higher risk assets than buying property to flip or rent them out ? At what point does the strategy change where let’s say the market generates better return than housing and vice versa ?

[@RetireearlyNYC]

@@byron9630
Thanks,
It all depends!! Some people can do really well in REI in some markets, some of the time.
But as a newbie investor, I’d go for S and P DCA over REI any day. It’s just sooo much easier. Watch out for my stocks vs real estate video. I have it done already. Just waiting to post it soon :)

[@RetireearlyNYC]

@@byron9630
And no, I would not recommend more risk than S and P. I’ve also done those. Not worth it. The S and P has beaten them all over the last 15 or so years. Going forward I’d only expect the historical avg of 8-10. But that’s good enough for me. No need for more risk

[@byron9630]

@@RetireearlyNYC thanks for your input. I’m currently heavily invested in BTC as an asset and looking to diversify a bit. Everyone just mentions property but I don’t have the tolerance for the maintenance, headache of managing a rental unit , etc. Currently late 20s and wanting to retire within 20 years with leanfire. Unfortunate, I don’t make $100k yet but I’m getting there

[@RetireearlyNYC]

@@byron9630
Yeah I don’t have the stomach for bitcoin etc. But perhaps one day my kids will be more successful investors than me and will tell me to just put my money there lol