There's no capital gains tax, though. And no tax on dividend income. So that does balance it out a bit.
That has quite some impact on SWR
The proposal for 2022 so far is just a proposal. There are general elections at the beginning of 2021, too.
Rube's journal
Re: Rube's journal
The proposal for 2022 so far is just a proposal. There are general elections at the beginning of 2021, too.
Re: Rube's journal
246 days = 176 work days (Mo-Fri) target
Wealth-tax @RealPerson and @wold, Dutchgirl is right. I hope the proposal will be amended in our favor. But even if not, no capital gains and no tax dividends. So all in all it might still not be that bad compared to other countries. I will review this more closely at a later stage, but for now it seems it is not worth it (yet) to make big changes to our asset strategy.
Weekend I enjoyed the weekend, we saw friends, watch the kids doing their sports.
Work Today I left home at 7:30 and came home 20:15 and still had to make a call and send some emails after that. Oh well, I'll be working from home tomorrow.
Wealth-tax @RealPerson and @wold, Dutchgirl is right. I hope the proposal will be amended in our favor. But even if not, no capital gains and no tax dividends. So all in all it might still not be that bad compared to other countries. I will review this more closely at a later stage, but for now it seems it is not worth it (yet) to make big changes to our asset strategy.
Weekend I enjoyed the weekend, we saw friends, watch the kids doing their sports.
Work Today I left home at 7:30 and came home 20:15 and still had to make a call and send some emails after that. Oh well, I'll be working from home tomorrow.
Re: Rube's journal
237 days = 169 work days (Mo-Fri) target
Some rambling without much structure:
Regular car maintenance + additional repairs. 1500 euro.
Phone got defect. Doing nothing at all anymore. I used to be able to buy a phone and expense it. Now policy changed and work can provide it. But I don't want to carry phone provided by work where I can't install the apps I want. Bought a relatively cheap Chinese brand smartphone. Still 220 Euro though. Can still expense the monthly usage costs. I am impressed so far by the bang for buck. Ordered als a new phone for DW. 150 Euro. Our spending will be high this month.
Our passive income from the rentals will be low this month due to additional maintenance at two units, costing us about 3300 euro.
Received a good offer for our house which we accepted. But there are some indications the potential buyer might back out. We'll have to see if they still sign in the next few days or not.
Paid off 10% of our current mortgage. Mainly to reduce our taxable wealth a bit at January 1st. Not a huge amount but saves us 200 euro for just a few minutes work. Will get this back in cash after selling our house next year.
Finished audio book The Millionaire Real Estate Investor. Now listening to Think and grow Rich.
Important issue going on at work which requires me to align thing with the headquarters. Due to the time difference I am still calling and emailing till around midnight.
Send my resume to my contact who asked recently if I would be interested in a not full time position.
Stay focussed on the important things. Step by step, and things will be ok. Actually great.
Some rambling without much structure:
Regular car maintenance + additional repairs. 1500 euro.
Phone got defect. Doing nothing at all anymore. I used to be able to buy a phone and expense it. Now policy changed and work can provide it. But I don't want to carry phone provided by work where I can't install the apps I want. Bought a relatively cheap Chinese brand smartphone. Still 220 Euro though. Can still expense the monthly usage costs. I am impressed so far by the bang for buck. Ordered als a new phone for DW. 150 Euro. Our spending will be high this month.
Our passive income from the rentals will be low this month due to additional maintenance at two units, costing us about 3300 euro.
Received a good offer for our house which we accepted. But there are some indications the potential buyer might back out. We'll have to see if they still sign in the next few days or not.
Paid off 10% of our current mortgage. Mainly to reduce our taxable wealth a bit at January 1st. Not a huge amount but saves us 200 euro for just a few minutes work. Will get this back in cash after selling our house next year.
Finished audio book The Millionaire Real Estate Investor. Now listening to Think and grow Rich.
Important issue going on at work which requires me to align thing with the headquarters. Due to the time difference I am still calling and emailing till around midnight.
Send my resume to my contact who asked recently if I would be interested in a not full time position.
Stay focussed on the important things. Step by step, and things will be ok. Actually great.
Re: Rube's journal
232 days = 166 work days (Mo-Fri) target
[Start rant work frustrations]
I got really frustrated this afternoon. I guess I feel (too) responsible, my "work ethic" is probably good for the employer.... (At least at certain times). I reminded myself to view it from a distance, don't take things personally, take it day by day, what doesn't kill you makes you stronger etc. It took some time but now I am almost calm again. The fact that I am at # 232 today probably also helped.
[/End rant work frustrations]
[Start rant work frustrations]
I got really frustrated this afternoon. I guess I feel (too) responsible, my "work ethic" is probably good for the employer.... (At least at certain times). I reminded myself to view it from a distance, don't take things personally, take it day by day, what doesn't kill you makes you stronger etc. It took some time but now I am almost calm again. The fact that I am at # 232 today probably also helped.
[/End rant work frustrations]
Re: Rube's journal
225 days = 161 work days (Mo-Fri) target
I planned to start taking off the Fridays after our summer holidays. At first I used these days to get the house ready for sale. When that was I done, I was able to enjoy only for about 2 Fridays really a leisurely day as last 2 (3?) weeks, work got so much I couldn't take off. And I actually worked also part of the Sunday again. I hope (expect) the current issue at work will settle (for me) a bit so, I can take off the coming (and future) Fridays again.
Later this month I will have another member added to my team. Which is great...except I will need to train her myself while being not in the same office (2 hour time difference) and in the same period we will get the keys of our new house. In this period I will need to take some time off, so I hope she's a self starter and only need a few words and lines to get things rolling before I can visit her a few weeks later. I don't really enjoy to manage people, how and why did I end up having 3 direct reports
.
Well, today is Monday, only another 30 Mondays to go before things should be (drastically) different.
The offer on our house was withdrawn, or better to say, they changed the offer and it was they wanted to back-out off it. A bit off a pitty as now we need to clean up every time there are viewings, make sure we and the kids can stay/work elsewhere etc. Oh well, hopefully we will get another good offer soon.
Despite these complaints and being too busy, life is good for me and the family.
I planned to start taking off the Fridays after our summer holidays. At first I used these days to get the house ready for sale. When that was I done, I was able to enjoy only for about 2 Fridays really a leisurely day as last 2 (3?) weeks, work got so much I couldn't take off. And I actually worked also part of the Sunday again. I hope (expect) the current issue at work will settle (for me) a bit so, I can take off the coming (and future) Fridays again.
Later this month I will have another member added to my team. Which is great...except I will need to train her myself while being not in the same office (2 hour time difference) and in the same period we will get the keys of our new house. In this period I will need to take some time off, so I hope she's a self starter and only need a few words and lines to get things rolling before I can visit her a few weeks later. I don't really enjoy to manage people, how and why did I end up having 3 direct reports
.Well, today is Monday, only another 30 Mondays to go before things should be (drastically) different.
The offer on our house was withdrawn, or better to say, they changed the offer and it was they wanted to back-out off it. A bit off a pitty as now we need to clean up every time there are viewings, make sure we and the kids can stay/work elsewhere etc. Oh well, hopefully we will get another good offer soon.
Despite these complaints and being too busy, life is good for me and the family.
Re: Rube's journal
We had the same thing happen to us. It took over a month to find a second potential buyer, but in the end that buyer was better (also in their communication with us now that we've sold the house and sometimes a tiny issue or question comes up) and they paid a bit more for the house. I'm hoping something similarly good for you guys!
Good to hear
I hope you can enjoy your Friday's off again; more than enough other things to do than to work, right? I hope things get smoother at work for you, soon.Re: Rube's journal
217 days = 155 work days (Mo-Fri) target
Thanks @DG. We actually got a new offer. Slightly less but if it doesn't fall through is is a good offer for us. We will know in a little over a week.
Work Still busy: traveling tonight back to home from a short trip within Europe. Added a new member to my team. Will be busy training this new member and have another short trip coming up in about two weeks. But things will likely be better soon. If not....well I still have to take quite some days off between now and end of this year due to our move. That means I have only 12 working days between now and the end of 2020!! Edit: that should be 2019 of course.
Thanks @DG. We actually got a new offer. Slightly less but if it doesn't fall through is is a good offer for us. We will know in a little over a week.
Work Still busy: traveling tonight back to home from a short trip within Europe. Added a new member to my team. Will be busy training this new member and have another short trip coming up in about two weeks. But things will likely be better soon. If not....well I still have to take quite some days off between now and end of this year due to our move. That means I have only 12 working days between now and the end of 2020!! Edit: that should be 2019 of course.
Last edited by rube on Sun Dec 08, 2019 2:45 am, edited 1 time in total.
Re: Rube's journal
How have you been this week? How many more working days until the end of 2019?
Re: Rube's journal
205 days = 147 work days (Mo-Fri) target
Thanks for the reminder
Only 8 more working days for 2019!
We've got the keys of our new house! I guess that's why I haven't post any update for 12 days: busy with normal life + everything for the new house: painting walls, installing (temp) lightfixtures, installing internet, arranging floor to be painted, packing all to move in two weeks time etc.
Will be busy for some time with all of this. It I won't be all "ere" style, but we want to do certain things on the house not because it is needed but because we want it and do have the financial means.
In the mean time I also arranged a new renter for one of the apartments. And we signed the contract to sell our house. Next week we know if the buyers also signed in time and didn't backed out.
Next week again on a 3 day business trip.
Now I need to get up to start working again on the new house!
Thanks for the reminder
Only 8 more working days for 2019!
We've got the keys of our new house! I guess that's why I haven't post any update for 12 days: busy with normal life + everything for the new house: painting walls, installing (temp) lightfixtures, installing internet, arranging floor to be painted, packing all to move in two weeks time etc.
Will be busy for some time with all of this. It I won't be all "ere" style, but we want to do certain things on the house not because it is needed but because we want it and do have the financial means.
In the mean time I also arranged a new renter for one of the apartments. And we signed the contract to sell our house. Next week we know if the buyers also signed in time and didn't backed out.
Next week again on a 3 day business trip.
Now I need to get up to start working again on the new house!
Re: Rube's journal
201 days = 143 work days (Mo-Fri) target
Work
Finished my business trip, waiting now till I can board for my flight to home. The trip went well, I am happy with my new team member and we had two nice evenings with the teams.
at these business trips I feels sometimes odd, people are talking about plans for the coming years and I am actively participating, but during the meetings/discussions I can't help wondering and think about if I will see these people ever again. Will I still visit this office again in the next 6 months? (Or there after if part-time is possible and I want it).
House(s)
We sold our current house, transfer at the Notary will be next month. We will move just before Christmas.
Financial
Despite a lot of expenses lately and in the near future (cell phones, car, house, school cost of kids etc) our net worth will probably reach the 1 million mark in January.
Work
Finished my business trip, waiting now till I can board for my flight to home. The trip went well, I am happy with my new team member and we had two nice evenings with the teams.
at these business trips I feels sometimes odd, people are talking about plans for the coming years and I am actively participating, but during the meetings/discussions I can't help wondering and think about if I will see these people ever again. Will I still visit this office again in the next 6 months? (Or there after if part-time is possible and I want it).
House(s)
We sold our current house, transfer at the Notary will be next month. We will move just before Christmas.
Financial
Despite a lot of expenses lately and in the near future (cell phones, car, house, school cost of kids etc) our net worth will probably reach the 1 million mark in January.
Re: Rube's journal
194 days = 138 work days (Mo-Fri) target
Last workday for this year!
I am sick and don't have much energy (having a cold).
Will be moving in a few days and still need to pack A L.O.T.
Networth increase in 2019 is over 200K
. We sold our house for quite a bit more than I had it listed in my file. The value of the rentals increased quite a bit and in addition we saved 70-75% of our income (employment and rental income).
Have another tenant leaving end of January. Means a bit if work to find/arrange a new tenant. I don't mind this normally but it makes me a bit stressed with everything going on related to our move, the transfer of our "old" house, another tenant 1st of January and my cold (and various other minor things). As I think I said before: we go step by step and day by day while staying focussed/prioritize the important things. I keep on reminding myself occasionally we're in a good spot in order to reduce/remove some of the stressful feelings.
Last workday for this year!
I am sick and don't have much energy (having a cold).
Will be moving in a few days and still need to pack A L.O.T.
Networth increase in 2019 is over 200K
. We sold our house for quite a bit more than I had it listed in my file. The value of the rentals increased quite a bit and in addition we saved 70-75% of our income (employment and rental income).Have another tenant leaving end of January. Means a bit if work to find/arrange a new tenant. I don't mind this normally but it makes me a bit stressed with everything going on related to our move, the transfer of our "old" house, another tenant 1st of January and my cold (and various other minor things). As I think I said before: we go step by step and day by day while staying focussed/prioritize the important things. I keep on reminding myself occasionally we're in a good spot in order to reduce/remove some of the stressful feelings.
Re: Rube's journal
Good luck, and good health, Rube!
One day at the time. And hopefully your last work day of 2019 went okay and is now over, and you will have enough strength to help with packing the moving boxes etc.
Just let it be a bit more chaotic than it would have been if you hadn't been sick and in such a rush. You'll have time to unpack and settle back into a more normal lifestyle in just a little while.
One day at the time. And hopefully your last work day of 2019 went okay and is now over, and you will have enough strength to help with packing the moving boxes etc.
Just let it be a bit more chaotic than it would have been if you hadn't been sick and in such a rush. You'll have time to unpack and settle back into a more normal lifestyle in just a little while.
Re: Rube's journal
193 days = 137 work days (Mo-Fri) target
Thanks @DG. I appreciate your comments.
Yesterday went ok and I felt a bit better today. Got quite some packed today. Still 2 more days to go to pack and prepare.
Thanks @DG. I appreciate your comments.
Yesterday went ok and I felt a bit better today. Got quite some packed today. Still 2 more days to go to pack and prepare.
Re: Rube's journal
189 days = 135 work days (Mo-Fri) target
We moved yesterday. Plenty of boxes still to unpack, but we have all essential things available and/or working.
Happy holidays to all!
We moved yesterday. Plenty of boxes still to unpack, but we have all essential things available and/or working.
Happy holidays to all!
-
crispyschnitzel
- Posts: 8
- Joined: Thu Jan 02, 2020 6:52 am
Re: Rube's journal
Following! I started from the beginning of your journal and am very impressed how far you have gone from then until now. 265k to 1M networth in 6 years? Wow. It looks like growth of your properties plus the rental income were what really supercharged your NW growth?
Re: Rube's journal
@crispyschnitzel, thank you. Actually it was 245K after correction in October 2012. So this took us 7 years and 3 months.
The net yield on our rental real estate, after closing/renovation costs, is so far about 210K.
Increase of value on other investments (stocks, bonds, gold) was about 30K in that period.
Increase of value of our own home during that period, we just sold it, was about 110K.
This is a total of 350K. Total increase on our NW was 760K. So we saved from our day job income about 410K, about 56.5 K a year.
Savings from our jobs contributed for about 54%, investments contributed for 46% to this growth.
So yeah, the real estate (own house) and investments properties supercharged this (though, if we would have invested this all in stocks, we might have had the same or even better results!)
A small part of the 245K I started this journal with, is also coming from interest/dividend etc. I don't have the exact details from this, but it is probably not more than 10% ~ 25K. This means about 37.5% of our current Net Worth is therefore made by yield on investments. I remember from a post from Sclass where he once said that the majority of his NW is now coming from investments (now he quit his dayjob already a long time ago).
The net yield on our rental real estate, after closing/renovation costs, is so far about 210K.
Increase of value on other investments (stocks, bonds, gold) was about 30K in that period.
Increase of value of our own home during that period, we just sold it, was about 110K.
This is a total of 350K. Total increase on our NW was 760K. So we saved from our day job income about 410K, about 56.5 K a year.
Savings from our jobs contributed for about 54%, investments contributed for 46% to this growth.
So yeah, the real estate (own house) and investments properties supercharged this (though, if we would have invested this all in stocks, we might have had the same or even better results!)
A small part of the 245K I started this journal with, is also coming from interest/dividend etc. I don't have the exact details from this, but it is probably not more than 10% ~ 25K. This means about 37.5% of our current Net Worth is therefore made by yield on investments. I remember from a post from Sclass where he once said that the majority of his NW is now coming from investments (now he quit his dayjob already a long time ago).
Re: Rube's journal
172 days = 122 work days (Mo-Fri) target
We survived the holidays and first week back to work.
House
We don't own the old house any longer, it transferred ownership at the notary earlier this week and handed over the keys.
I feel at home in our new house, but it will require a lot of work for the next 12-24 months or so.
Work-holidays
First work week in 2020 I felt tired. Different rhythm after the holidays - went to bed too late.
Assuming I will work till end of June, I will have about 23 holidays available. It means I could continue to take off each Friday. But I probably also need some holidays for other things in this period AND in case I do not quit end June, or stay on parttime, I want to be able to take a summer holiday with kids and wife. So for now I decided I won't take off automatically all Fridays and will see how things go in the coming weeks/months. In the "worst case" I still quit and have most of them left, which means I can quit almost a month earlier or have 1 month more pay.
Investments - NW enough?
I am/was hoping to be able to invest bit more in real estate before I quit my job. This because while working I have access to very good mortgage terms and it would provide a good margin between monthly income and expenses. This would help to continue to grow our net worth, even when we would no longer would have income from our day jobs. But with the current hot market, it might be hard/impossible to find and close deals in the next 3.5 month (before I have to give my notice).
If it turns out I can't buy more in the next 3.5 month, I feel a little less secure because I don't know exactly how much yield we're able to make on our currently non invested cash, if I or DW will have side incomes (I actually prefer not need to) if it will be sufficient to support the kids during their study, realize some of our own future wishes etc. The difference between a positive outcome, i.e. making a 1-3K / month on parttime consultancy/side job and 1-2K additional rental income to a negative outcome, i.e. making no additional money at all and having some unexpected lower rental income/additional cost of say 1-1.5K a month, is a huge difference of max 65K a year and means the difference between potentially running out of money at some point or FAT FIRE. This insecurity is not new, I wrote about it earlier and this is probably where the (in)famous one more year syndrome is coming from.
In any case, I still really target end of June to quit working full time so please help me to keep me accountable on my target date. Part time though, to ease my concern and be able to enjoy some perks (including be able to buy Real Estate with good mortgage conditions), are still an option for me, if I get that it offered.
We survived the holidays and first week back to work.
House
We don't own the old house any longer, it transferred ownership at the notary earlier this week and handed over the keys.
I feel at home in our new house, but it will require a lot of work for the next 12-24 months or so.
Work-holidays
First work week in 2020 I felt tired. Different rhythm after the holidays - went to bed too late.
Assuming I will work till end of June, I will have about 23 holidays available. It means I could continue to take off each Friday. But I probably also need some holidays for other things in this period AND in case I do not quit end June, or stay on parttime, I want to be able to take a summer holiday with kids and wife. So for now I decided I won't take off automatically all Fridays and will see how things go in the coming weeks/months. In the "worst case" I still quit and have most of them left, which means I can quit almost a month earlier or have 1 month more pay.
Investments - NW enough?
I am/was hoping to be able to invest bit more in real estate before I quit my job. This because while working I have access to very good mortgage terms and it would provide a good margin between monthly income and expenses. This would help to continue to grow our net worth, even when we would no longer would have income from our day jobs. But with the current hot market, it might be hard/impossible to find and close deals in the next 3.5 month (before I have to give my notice).
If it turns out I can't buy more in the next 3.5 month, I feel a little less secure because I don't know exactly how much yield we're able to make on our currently non invested cash, if I or DW will have side incomes (I actually prefer not need to) if it will be sufficient to support the kids during their study, realize some of our own future wishes etc. The difference between a positive outcome, i.e. making a 1-3K / month on parttime consultancy/side job and 1-2K additional rental income to a negative outcome, i.e. making no additional money at all and having some unexpected lower rental income/additional cost of say 1-1.5K a month, is a huge difference of max 65K a year and means the difference between potentially running out of money at some point or FAT FIRE. This insecurity is not new, I wrote about it earlier and this is probably where the (in)famous one more year syndrome is coming from.
In any case, I still really target end of June to quit working full time so please help me to keep me accountable on my target date
. Part time though, to ease my concern and be able to enjoy some perks (including be able to buy Real Estate with good mortgage conditions), are still an option for me, if I get that it offered.Re: Rube's journal
Mmmm, so much savings, so much income and still a little bit unsecure. Your last home move gave you (apparantly) liquidity and therefore freedom in future to invest, and as you mention, a lot of work on your new home.
You seem to forget that you are switching, has switched, from a salaryman to a full blown investor/entrepreneur!
So recline and think about how to stay free from too much stress, enjoy and explore life without a paid job. Teach your children how to become financial independent. Earning money (in future) is not that difficult for a person with the capabilities like you have. Especially not in real estate if you have a long time-scope. Good luck Rube!
You seem to forget that you are switching, has switched, from a salaryman to a full blown investor/entrepreneur!
So recline and think about how to stay free from too much stress, enjoy and explore life without a paid job. Teach your children how to become financial independent. Earning money (in future) is not that difficult for a person with the capabilities like you have. Especially not in real estate if you have a long time-scope. Good luck Rube!
Re: Rube's journal
Based on your last post , NW is somewhere close to 1.3M CAD/1M USD. I think for most people on this forum that would be plenty, it must feel amazing to have that kind of NW. At this point you're able to make decisions to keep working in order to satisfy things outside of general requirements (food, housing, etc.) and you seem flexible enough to be able to handle the bad scenarios gracefully should they occur. I do understand your desire to support your kids during studies, I have the same desire with mine and it can get expensive depending on how much "support" is given, to each their own on that.
Re: Rube's journal
I also think your situation is pretty solid, Rube. But yeah, you personally have to feel that, too. Being anxious for two decades straight would not be the most fun use of your time. But you still have time to get more used to the idea, so that's good. Currently you can still suffer from the One More Month-syndrome without consequences.