Rube's journal

Where are you and where are you going?
Will
Posts: 79
Joined: Sun Dec 25, 2016 5:23 am

Re: Rube's journal

Post by Will »

Hi Rube, how are you comfortable with buying a house in the current market in the Netherlands? Is it because you can sell your existing house and then basically break even? If your new house will be more expensive it seems far from the right time now.
We have been considering buying our first house for the last 1,5 years but the market only seems to get more crazy over time.

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

Re: Rube's journal

Post by rube »

Will wrote:
Wed Oct 17, 2018 4:11 pm
Hi Rube, how are you comfortable with buying a house in the current market in the Netherlands?
Hi Will, house prices are high, but interest is (extremely) low. So while I would have preferred it the other way around (so you can buy cash) I am still kind of okay with it. We expect to be selling our current house for quite a bit more then a couple of years ago, but won't make up for the increase of our to be future house. We won't buy in the most expensive parts in the Netherlands though. Also, we prefer not to wait till the "right time", because we have our own planning when we want to do things that are important to us and the market doesn't listen (align) to us.

As this is all very personal, I can't say what is a good decision for anyone else, but in al circumstances I keep 3 things in mind: balance sheet, cashflow and risks (=probability x severity) of different scenarios in mind and how those risks possibly can be mitigated (resilience). The outcome for us is that I think it is still acceptable (if we can find a house to our wishes).

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

Re: Rube's journal

Post by DutchGirl »

We bought a house last year. We assume that we may have overpaid by 30% of the "true value"*, but it was worth it to us to be able to make this move. Who knows, maybe by the time that we sell (many, many years from now) the market may be irrational enough to offer us 30% too much, again.

*Of course it's very hard to determine what the true value is, anyway. Because the value of a house is partially determined by the value of the ground that it sits on, and that can be more or less valuable based on how many people desire to live in that specific area.

That said, Rube, here is the perfect house for you guys: live like royalty :lol:

rube
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Re: Rube's journal

Post by rube »

@DG thnx for helping us in our search, but I guess I need to send you our list of whishes :? :lol:

We visited 2 places yesterday and probably will send an offer for one of the places. We won't be willing to offer asking price (too much for us) so I do expect they won't accept but who knows...

J_
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Joined: Tue Nov 01, 2011 4:12 pm
Location: Netherlands/Austria

Re: Rube's journal

Post by J_ »

Hi Rube: for real estate (housing) choice my rule was/is: superb location, everything within walking/cycle distance for parents and kids (incl. scholing and sport), as quiet (free from traffic and aviation sound) as possible. "nature" within walking distance. Just fitting space-wise.
I suppose yours are about the same?
For the rest: I admire your way to set goals; be as brave to reach them!

McTrex
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Joined: Fri Jul 23, 2010 9:35 am
Location: NL

Re: Rube's journal

Post by McTrex »

Rube,

Are you looking in a specific area?

rube
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Re: Rube's journal

Post by rube »

@J_ yes, very similar. Except for the one we're currently looking at, as it is actually too big (but we would renovate it such that we do not use all the space). We made the offer, but no news yet.

@MCTrex, roughly within the triangle of Apeldoorn, Doetinchem, Almelo, but we do have some specific wishes that comes with it. You know perhaps something for us?

McTrex
Posts: 180
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Location: NL

Re: Rube's journal

Post by McTrex »

Well, we live in Ermelo and I believe our location fullfills all of J_'s rules. So I thought maybe you'd be interested in looking around this area.

Will
Posts: 79
Joined: Sun Dec 25, 2016 5:23 am

Re: Rube's journal

Post by Will »

rube wrote:
Fri Oct 19, 2018 2:04 am
As this is all very personal, I can't say what is a good decision for anyone else, but in al circumstances I keep 3 things in mind: balance sheet, cashflow and risks (=probability x severity) of different scenarios in mind and how those risks possibly can be mitigated (resilience). The outcome for us is that I think it is still acceptable (if we can find a house to our wishes).
That's a good way to think about it. Also good that you are buying in a still relatively affordable part of the Netherlands, at least when I compare it to where I live (Randstad). As an illustration: I remember that 1,5 year ago, my GF and I went to visit a house which was for sale. We both concluded that 220k euro was too much for that specific house, also because I had a temporary contract at my job and we weren't sure we wanted to live there for a longer time period. At this very moment there are comparable houses in the same street being sold for 300k!
In hindsight, we should have bought the house. But I am not willing to take the risk now.

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

Re: Rube's journal

Post by rube »

We agreed verbally on a house. It fits most of J_'s requirements, though it is a bit larger then we needed and we had to compromise a bit on a few of our own wishes. And it is expensive! Well this is subjective ofcourse. But to me it is too much money. But money is still cheap nowadays...so all houses are too expensive in my view. Still this was the best option for us, we think...
Now we need to arrange everything to make the deal happen.
Because of the higher as planned price, it might mean that I stay a bit longer with the current job to be able to save some more. But we'll probably review that again closer to the original target date, summer 2019.


Edit: forget above, did not went through (again).

rube
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Location: Europe (NL)

Re: Rube's journal

Post by rube »

Another quarter passed, time for an update.

Housing:
It looks like we gave up our house search, at least the one where we would move 1-2 hours from our current place. A number of factors lead us to this decision which means a change of plan(s):
A)we move to a house near our current place (max. distance: biking distance to school for DD & DS).
B)we stay where we are and will renovate/remodel the place.

Working:
Either way, with the current housing plans we have no immediate urgency to stop working because it is too far from the office or because I need to immediate renovate it full time in order to live here.
So....I probably won't quit this summer, but will start taking my leave days, as I have many collected from previous years, so that I effectively will work 4 days a week from September till end of the year.
By the end of the year I will ask to officially change my contract to 4 days a week and will work for max. another 6 months (till summer holiday kids). Then, DW, will quit also, so that we could enjoy a long summer holiday with the kids. This is summer 2020, 68 weeks from now.

It might be/look like the One More Year Syndrome, but I think this will be the best plan for us for now taking all things in considerations.

Finances:
Expenses and savings are more or less on auto pilot. Still crazy to save so much, almost 10K monthly, but we're at the point it is normal, just number and graphics in excell. Looking to find more rentals, despite the difficult/high market.

Maybe another time more details, when I am not typing on my phone. Or if any specific questions let me know.

J_
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Location: Netherlands/Austria

Re: Rube's journal

Post by J_ »

Hi Rube, it can be brave to reconsider. And for now it gives you peace of mind.

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

Re: Rube's journal

Post by rube »

52 weeks - 365 days - target
I will try to post more regularly now I am really starting to count down. Well, I am doing that actually already for a while, but it is getting more serious now :o .
I will do this both for myself as to show the proces I am going through for others.

Working to get everything setup and make use of the possibilities while we still have the opportunity. Like using the low interest rates. And therefore.... we bought 2 more apartments. Transfer will be later this month. It took quite some time to find interesting deals. They might still not be super great, but I believe they are ok.

I am working to optimize our balance-sheet and our expenses and income. Part of this is getting long fixed interest rates for our mortgages, keeping a large and (fairly) liquid buffer and create sufficient margin between monthly income from the rentals and our expenses.
This is all a balancing act considering risks, opportunities, wishes, feelings etc. between now and say 40 years down the road. Because this is impossible....you need to make assumptions. Anyway, I might post more about this later and show the numbers and balance sheet I am aiming for.

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Lemur
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Re: Rube's journal

Post by Lemur »

Rube...if you could describe your health issue a bit more (I haven't read your full journal) but it sounds like what you're describing is a herniated disc in the lower back. I only know this because the symptoms you've listed was equal to this injury that I had myself (pain in lower back + pain down right leg). This happened almost 9 years ago...I got surgery...and still deal with some symptoms. So yea it appears to be chronic for me.

rube
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Re: Rube's journal

Post by rube »

Hi Lemur, thanks. I probably neglected to tell this in my journal, but after about 14 months of pain, and a couple of rounds where it slowly was getting better and then suddenly getting worse again, the pain is gone finaly and completely since around January. The first month this year it still felt "vulnerable", but now not so much anymore. I am cautious though with running and heavy lifting. The last couple of times it came up, I did a lot of walking, in the beginning cautious, slowly, but long walking to make sure the muscles in my back didn't get crazy painful stiff. I still don't know exactly what it was, according the physical therapist last year it was not a hernia, but I still doubt myself between a hernia or the piriformas syndrom. In any case, I know my back is a "weak" spot, which I need to take (more) care of to prevent it becomes chronic. It is so easy to take pain-free and a healthy body for granted that it is easily to forget about the maintenance. I'm sorry to hear it became chronic for you, wish you the best.

rube
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Re: Rube's journal

Post by rube »

52 weeks - 364 days - target
Working at home is great, but...already for a while I find it quite difficult to concentrate on the work. I won't write too much about, you never know if the employer finds out....That said, I still got an absolutely praising review from my manager not too long ago. So I guess, I feel I can do perhaps do some more, but people are still very happy with the results of my work. So, perhaps I shouldn't feel guilty/care too much about it and ignore the imposter syndroms(?) feeling that I have now and then.

Exspenses of June came in at 2788 euro. The TTM is now 3224 euro. After some time where expenses where creeping up, it now went down again. Very good to see and this also confirms me, if needed we can lower costs further/again by spending less on non-necessities like holiday, days out etc. However, as long as not specific needed I am okay with moving expenses from year to year a bit. Especially when it is due to some costs that won't last much longer then say 10-12 years (kids, holidays with kids etc.).

Net worth end of June around 926K euro. It increased a lot because I increased the value of the real estate after the appraisals I got done. Actually I think I the appraisals are still quite conservative from a couple of reasons I won't go into detail here. In any case, I am happy with this. This month we will have some 1 time costs related to buying the two new apartments. So I expect we come in around 910K end of this month and around 1 million next year (364 days!).

Yesterday I got in an online conversation with someone about Real Estate. One of the topics was his goals, which turned out to get to a free monthly net cashflow of about 40K. He had this goal because he didn't want to have a standard life, he wanted to great life. And he was too young to do "nothing". And with money you can also buy time. He gave the example of when going on holiday and you need to wait on a plane that leaves in an inconvenient time, so you are tired when arriving etc. So instead he was envisioning to be able to just take any plane which enables him to sleep and be rested upon arrival. And...for that you need money! On one hand I was intrigued by his goals and he started me thinking about my own goals. But I was also surprised about his view on money and and his (imo) bad example why you need (so much) money. Still most people connect money to be materialistic and luxury things they need to be happy and have a great life.

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

Re: Rube's journal

Post by rube »

52 weeks - 363 days - target
Busy and long day at work. I also had to visit and arrange something for the new apartment. Contractors/flippers are always difficult to deal with and in the end it will cost me more money, sigh. Well, another day passed, closer to target and the weekend. Step by step.

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

Re: Rube's journal

Post by rube »

52 weeks - 362 days - target
On my way to home now after a long day: leaving home at 6 AM, back home around 8 PM, about 5 hours in the train and sitting in at a 7 hour long meeting. We were discussing various things which are perhaps going to happen in 1+ years. So I was frequently thinking that this might not "affect" me anymore. As a result I was easily distracted by my private email and so on. I have only about 5 of this specific type of meeting left.

Still a bit annoyed by the difficulties with the contractor and the additional money it will probably cost me. Though kind of accepted it and am prepared to pay the extra money when I arrange (fix) it later myself, without getting to stressed about it. But still trying to get him do it first. I also received the energy label result of the building and what I should do to improve. I need to improve this, as with the current level I can't decide my own rent and I am bounded by the "social housing" rents. Which is (obviously) not sufficient to have a decent yield. Something to look into the comming days/weeks.

Very recently I had my first guitar lesson. I felt like a small child learning to walk or bicycle. Clumsy and slow. People are telling me it is just practicing.....I am dreaming of being able to play the guitar very well. I will decide soon after these "trial" lessons if/when/how I will
continue. But if I enjoy, this might be one the hobbies I am going to pursue when quitting my job.

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

Re: Rube's journal

Post by rube »

52 weeks - 361 days - target
This was the first workweek of the last year. It passed by...well, quickly.
Today, as usual on Fridays, I worked from home. Nothing really special today, glad it is weekend now. I need to look into some things for one of the new apartments and take care of some other things this weekend. But first, relax on Friday evening.

Quadalupe
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Location: the Netherlands

Re: Rube's journal

Post by Quadalupe »

Just wanted to let you know I’m following your daily posts with great interest! Good luck with the final miles.

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