Rube's journal

Where are you and where are you going?
rube
Posts: 434
Joined: Tue Oct 02, 2012 7:54 pm
Location: Europe (NL)

Re: Rube's journal

Post by rube » Wed Apr 01, 2015 11:24 am

Ok, I guess there are enough people that can and will join. I will make a new topic for this meet-up so it is more visible and we can schedule it!

dxxr
Posts: 5
Joined: Fri Apr 03, 2015 3:52 pm
Location: the Netherlands

Re: Rube's journal

Post by dxxr » Sat Apr 04, 2015 1:35 pm

I would like to join as well. I live in the south of Netherlands.

> I will make a new topic for this meet-up so it is more visible and we can schedule it!
Can you please post a link to this topic?

thanks!

rube
Posts: 434
Joined: Tue Oct 02, 2012 7:54 pm
Location: Europe (NL)

Re: Rube's journal

Post by rube » Sun Apr 05, 2015 2:14 am

Let's discuss the meet up here:
viewtopic.php?f=5&t=6213

rube
Posts: 434
Joined: Tue Oct 02, 2012 7:54 pm
Location: Europe (NL)

Re: Rube's journal

Post by rube » Tue Apr 14, 2015 1:20 pm

I am travelling for work again this week. It is busy but also nice to meet other people and do other activities as usual. While I only have been for about 5 years in the exact proffesion I am in now, I am recognized as an expert by 3rd parties and the relatively small group of other experts. Mostly I don't feel I am an 'expert', because I tend to look up instead of down. But the recognition does feel nice sometimes.
But of course I won't become a specialist that is capable of doing only one thing! Speaking about that: I showed my daughter how a flat tire needs to be fixed. When possible, I try to show to the children how to repair and fix things and encourage them, so they can start doing these things in a couple of years themselves. I think it will help if they get confidence in themselves to do such things before they are adults and move out of house.

I'll probably post a combined financial update of March and April early May, but a spoiler: with the bonus of March we had the highest income ever. Also the market was good again. And I received a 3% salary increase. Yeah :-)

rube
Posts: 434
Joined: Tue Oct 02, 2012 7:54 pm
Location: Europe (NL)

Re: Rube's journal

Post by rube » Fri Apr 17, 2015 9:10 am

5 minutes before boarding the plane, they announced it was overbooked.
I volunteered, received 150 Euro, a meal voucher and will be flying business class on the next flight which is 4 hours later. Now I am waiting in the airline lounge with free drinks and food ;)
The only complain is that wifi blocked/is too slow for netflix

DutchGirl
Posts: 1038
Joined: Tue Sep 06, 2011 1:49 pm
Location: The Netherlands

Re: Rube's journal

Post by DutchGirl » Fri Apr 17, 2015 10:20 am

Just three more hours now? I hope you'll enjoy your further stay there, and I wish you a good return flight.

rube
Posts: 434
Joined: Tue Oct 02, 2012 7:54 pm
Location: Europe (NL)

Re: Rube's journal

Post by rube » Fri Apr 17, 2015 11:52 am

thanks DG. Only one more hour now. And...netflix worked after all...:-)

rube
Posts: 434
Joined: Tue Oct 02, 2012 7:54 pm
Location: Europe (NL)

Re: Rube's journal

Post by rube » Tue Apr 21, 2015 11:02 am

I received the 150 euro compensation for the "delayed flight" on my credit card today. Nice.

Some time ago I looked into buying a rental. The house that I visited and looked okay to me was already sold (under "condition", mostly this is financing). But last week I was called by the real estate agent it was on the market again, yeah! Last weekend I spend about 8-12 hours to make all the calculations, looked into all the details and prepared the bidding letter, so it could give it on Wednesday when DW and I would both visit the house (I already had seen it my self before). Then yesterday the agent called me that it was off the market again as the (more or less) buyer was still working to get the mortgage arranged grrrr :x.

We'll see, maybe they can't arrange it after all and we will be called again. On the other hand, it was not such a great deal that it would be generating a high yield, but it was reasonable (for us) considering the alternatives (saving account, CD, stocks, bonds etc. all yielding nearly nothing or high valued). And, this would be a good timing for us to try to see if we like to be a landlord. Anyway, we will await the final outcome about this one and otherwise wait for another opportunity.

On another note: our net worth has increased over the last 12 months a little more than we made with our salaried income! That sounds like we’re FI, unfortunately I don’t think the yield over the last 12 months is sustainable over the next 40 months so we still need to double (and a bit) our net worth. But it is a great feeling :P .
Last edited by rube on Sat May 02, 2015 4:56 am, edited 1 time in total.

rube
Posts: 434
Joined: Tue Oct 02, 2012 7:54 pm
Location: Europe (NL)

Re: Rube's journal

Post by rube » Sat May 02, 2015 4:55 am

Well, I ended my last post with:
unfortunately I don’t think the yield over the last 12 months is sustainable
And a couple of days later the market set us back so that all our savings of April and earlier April gains were wiped away and our net worth is exactly the same as a month before. That despite the 70% savings rate of April.

We touched the 400K mark intra-month but it will now be May or June before will hit and pass it again, assuming the market don't make other big swings.

Still thinking and looking to buy a rental, but no progress.

DutchGirl
Posts: 1038
Joined: Tue Sep 06, 2011 1:49 pm
Location: The Netherlands

Re: Rube's journal

Post by DutchGirl » Sat May 02, 2015 6:35 am

Hey Rube, yup, the market was a bummer this month. I managed to increase my investments by 120 euros this month. I did this by adding 500 euros from my salary to my portfolio, ha ... But don't worry, things will get better again. This is an opportunity to buy at cheaper prices, right?

rube
Posts: 434
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Location: Europe (NL)

Re: Rube's journal

Post by rube » Mon May 11, 2015 6:17 am

Yep, I don't really worry about it. It's just that the nice exponential graphic I had is now looking more as the left side of the table mountain in South Africa, just having reach the top.... We'll just continue with the strategy to move each month a fixed amount to our Permanent Portfolio.

May seems to become an expensive month with some one-off costs, but it seems that [one-off] is always the case. Despite our income increasing the last years and our mortgage interest payments went down, it seems to be difficult to get our savings rate up. Of course I'll know how to do it, but I won't make the family happy to implement that. And probably myself neither :lol: . The good thing is, our hardcore fixed costs are quite low. We spend (deliberately) quite a lot on holidays and certain things for the kids. Mind you, this is according ERE standards. In the average world we're still cheap skates ;)

One of the one-off costs for this month was to have our son tested. € 420, ouch...For already a couple of years we have seen certain signs and we were unsure if the current school would be adequate for him. The test confirmed our expectations more or less. His IQ was tested to be around the top 1% of the population. If it is true that that intellect is for a large part determined by genetics, his mother must be really, really smart :lol:
Luckily it looks he's developing pretty symmetrical and does not show major behavior issues etc. But we'll need to make a plan with school to make sure he actually learns to learn and to be persistence when things are really difficult for him. This just to avoid issues later on which I we are afraid will happen otherwise. Hopefully that will work out and he can stay at this current school where he has friends and is happy.

Hankaroundtheworld
Posts: 465
Joined: Mon Feb 24, 2014 4:50 am

Re: Rube's journal

Post by Hankaroundtheworld » Mon May 11, 2015 9:45 am

rube wrote:Well, I ended my last post with:
unfortunately I don’t think the yield over the last 12 months is sustainable
And a couple of days later the market set us back so that all our savings of April and earlier April gains were wiped away and our net worth is exactly the same as a month before. That despite the 70% savings rate of April.

We touched the 400K mark intra-month but it will now be May or June before will hit and pass it again, assuming the market don't make other big swings.

Still thinking and looking to buy a rental, but no progress.
Hi Rube, a mind-trick that I use in my personal reporting, is to keep a value of my funds minus 10% (as long as market is "high"), so if market value is 500k (let's say), I report it in my books as 450k. This allows a "buffer" in case Market is going to be corrected. Of course, this is just a mind-trick.

Regarding "rental" target, are you looking at Amsterdam? I was, and it seems apartments go fast at the moment (the good location ones of course)

rube
Posts: 434
Joined: Tue Oct 02, 2012 7:54 pm
Location: Europe (NL)

Re: Rube's journal

Post by rube » Mon May 11, 2015 11:49 am

Ha, a good mind trick. But I will use the market value for now, it will teach me to withstand market moods.

Rental: the plan was to start 'small', something like 100-130K. This is possible in several places in 'de randstad' (Den Haag, Rotterdam) but not Amsterdam! I don't dare to start in Amsterdam with half or more of our net worth.

You already have 1 or 2 rentals I believe? How is your experience so far? What place and market if you don't mind sharing this.

Hankaroundtheworld
Posts: 465
Joined: Mon Feb 24, 2014 4:50 am

Re: Rube's journal

Post by Hankaroundtheworld » Tue May 12, 2015 6:13 am

Hi Rube, via a PM we can discuss the exact locations (one in the Netherlands, one abroad), but in general, I have reached a yield of around 6% on both Apartments, but I take 1% off as a buffer in case renovations or rental interruptions occur, but so far it has been reasonable without issues. I am trying to focus on Expats as tenants, but not always possible. It is a bit tricky this Rental business, you can be lucky with Tenants, but I also have heard horror stories. In the last 15 years (for one apartment, the other is more recent), we only had one bad couple (French expats that left without paying a few Months), and we had one long break of about 7 Months (other breaks between tenants were small, like max 2 months, the long break we used for renovation). Renovations costs were also limited so far, around 8000 Euro in 15 year, but the apartment is now getting a bit dated, which limits rental increase. As you can imagine, this Rental business can vary a lot depending on quality of Apartment, quality of Tenants, Market realities in rental, Management organization, etc... Conclusion: I still like it as a diversification strategy, but I do not want to be over-exposed because of potential issues.

rube
Posts: 434
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Location: Europe (NL)

Re: Rube's journal

Post by rube » Fri May 29, 2015 1:27 pm

@hatw: thanks for the info. Sounds much lime I read/heard elsewhere.

Our offer on a apartment was accepted yesterday. Paperwork and official transfer need to be arranged, will likely take 3-4 weeks. It's an apartment in the centre of our city (in de randstad). Building is only 20 years old. Kitchen, bathroom, floor are all only a few years. We bought it incl. all furniture (looks pretty good also).
Need to find a renter now so that hopefully soon after the transfer it generates a nice monthly steady cashflow.

rube
Posts: 434
Joined: Tue Oct 02, 2012 7:54 pm
Location: Europe (NL)

Re: Rube's journal

Post by rube » Fri Jun 19, 2015 3:48 am

Rental: contract signed last Saturday, payment made yesterday and today. I never transferred such an amount of money, I checked 4 times if the account number was okay.... :? Official transfer by Notary is Wednesday. Adds are placed on all major local websites for housing. Plenty of interest, lot's of people who can't pay it (IMO). Trying to get potential renters have it visited next week Saturday and aiming to have it rent out early July. If we have not found a renter early July, it might take another 2 months due to business travel and holiday. So I really prefer to have a renter before, but I won't accept a renter if I am not convinced they can and will pay it.

We decided to move DS to another school, which has a special program and is likely much better for him. He'll go there after the summer holiday.
Luckily he will be in the same class as one of his friends out the street, so he already has a connection. We'll have to organize some things to get the bringing - getting him arranged, luckily we have (or make) our jobs flexible.

The market / PP is doing not so good lately. That together with some one time costs for acquiring the rental property makes it that this month our net worth is actually going down :( , I believe for the first time since starting this journal. Our normal expenses haven't changes much over time so it will all be okay.

In July I have a 2 week over seas business trip coming up, August a 3 week holiday (in Asia). Plus we have to get all organized for the rental property. Means that till September we're quite busy and occupied, but all with good things.

And once more: I really liked the ERE meeting in the Netherlands last Saturday. I hope I'll be able to organize/join a ERE meeting again in Toronto in July, likely the 19th (or perhaps the 25th). Pooablo and Chipamogli will try to be there then as well. I'll make a posting about this later.

Hankaroundtheworld
Posts: 465
Joined: Mon Feb 24, 2014 4:50 am

Re: Rube's journal

Post by Hankaroundtheworld » Sat Jun 20, 2015 3:01 am

Great progress and good luck creating money with the rental business :-)

rube
Posts: 434
Joined: Tue Oct 02, 2012 7:54 pm
Location: Europe (NL)

Re: Rube's journal

Post by rube » Wed Jun 24, 2015 3:16 pm

@hatw: thanks.

Documents signed at the notary today and we received the keys. Condition of the apartment is really excellent. No work needed. In the evening we went back with the kids to show it to them. We bought some food in the neighbourhood and had dinner in the apartment.

rube
Posts: 434
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Location: Europe (NL)

Re: Rube's journal

Post by rube » Sun Jul 05, 2015 11:16 am

From the responses received on the add, I made a selection and invited 8 persons to have a look at the apartment. That was only 3 days after we received the keys. 7 showed up and we could choose* the renter. 2 days later papers were signed and keys handed. First rent is now received.

From viewing the property ourselves till have it rented was exactly 1 month and 2 days. It all went very fast and it was quite a busy month with this new adventure, the weekend we spend with family away and some other activities.

*@DG: sorry, we didn't choose your friend of a friend...

J_
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Re: Rube's journal

Post by J_ » Sun Jul 05, 2015 2:41 pm

Well done Rube. That it may bring you a long and good return!

DutchGirl
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Re: Rube's journal

Post by DutchGirl » Sun Jul 05, 2015 2:47 pm

Hi Rube, that's fine. She'll find her way. Congrats on finding a renter and good luck.

rube
Posts: 434
Joined: Tue Oct 02, 2012 7:54 pm
Location: Europe (NL)

Re: Rube's journal

Post by rube » Sat Jul 18, 2015 3:40 pm

@above: thanks :)

Currently travelling for 2 weeks in North America and I am now for a week in Toronto. Just had my first geocaching adventure. Quite fun. Anyone else here doing geocaching?

If anyone from Toronto is interesting to meet and hang out in a park or elsewhere 'ere-ish', let me know. Possible tonight (short day....) or next week Saturday? I am staying downtown.

rube
Posts: 434
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Location: Europe (NL)

Re: Rube's journal

Post by rube » Sun Jul 26, 2015 6:59 am

Met SLSDLY yesterday in Toronto. Was nice to meet another fellow ere'r.

Now waiting on the last piece of my flight to go home. But, similar as a couple of months ago, it was overbooked and I volunteered to take the next flight. Result: wait/read at the airport for 3 hours and a bit and get 250 euro compensation.

Edit: and also this flight was overbooked so I volunteered again and got another 250 euro. Now total 500 Euro for waiting and reading for 8 hours at the airport.

dxxr
Posts: 5
Joined: Fri Apr 03, 2015 3:52 pm
Location: the Netherlands

Re: Rube's journal

Post by dxxr » Sun Jul 26, 2015 1:48 pm

rube wrote: Currently travelling for 2 weeks in North America and I am now for a week in Toronto. Just had my first geocaching adventure. Quite fun. Anyone else here doing geocaching?
Yeah. Tried it a few times. It was quite fun. Should do it again soon.
rube wrote: Edit: and also this flight was overbooked so I volunteered again and got another 250 euro. Now total 500 Euro for waiting and reading for 8 hours at the airport.
Well done :-)

DutchGirl
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Re: Rube's journal

Post by DutchGirl » Wed Jul 29, 2015 1:12 am

You could make a living of volunteering for NOT taking a flight :-)

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