...There are a few things I would do differently if I could do it all over again.
The first thing I would do different is buy an apartment building while I was young. I would get as big a property as I could convince the lenders to finance. I would live in the building, manage it, and do whatever maintenance was necessary to enjoy free rent and positive cash flow. Had I walked that talk in my 20’s instead of paying rent or buying my first house then I would own a rental property today that is fully paid for and cash flowing like a big dog...
I was inspired by this blog post! Btw, I'm 27, opened my eyes and adopted frugal living since 2020.
I'll try my best to keep the situation simple and clear. I'll explain in numbers and shapes :) :
Lot"a") 1 house 80m2 + 1 attic --- (I own 33%, the rest my 2 brothers) --- Actual Value = 200k --- Actual Rent Revenue = 6k/y.
Lot"b") 1 house 110m2 on 400m2 land + 700m2 land (can still build residential of 300m2) --- (I own 33%, the rest my 2 brothers) --- Actual Value = 250k+100k = 350k --- Actual Rent Revenue = No rent.
Right now I still live with my parents on Lot"b" 110m2 house, but It's time to make the choice.
Basically I have options to chose from:
1) I could build my residential part on the 700m2 land of the Lot"b".
This means a condo made of 3, 100m2 each apartments. 1 mine, 2 of my brothers.
Total cost 150k. (I will need a mortgage)
2) I could get 100% property on the existing 110m2 house on Lot"b", and exchange with entire Lot"a", and entire 700m2 land on Lot"b" to my brothers.
Then, I could split the exitisting 110m2 house into two 55m2 houses. 1 for me, 1 for my parents (to rent in the future).
Here I could DIY: Total cost 40k. (I will not need a mortgage).
3) Sell everything to my brothers for 150k.
This is just what it comes to my mind, I'm sure there could be more options. Please, enlighten me!
Basically what I'm doing here is calculating pros and cons:
Cons : 30y Mortgage, sharing maintenance/issues with brothers,
Pros: New/Fresh build, Lower future value due to being a condo form factor
Facts: Future Inheritance 33% rent on 2 houses = 4k/y
Cons : Smaller?, Old House? (built on 1990)
Pros: No mortgage No debt, I own house+land alone after my parents, Make easier individual decisions, Higher future value due to being a villa form factor
Cons : I do not have anymore a place to live. I need to buy a house or a van.
Pros: I have the freedom to chose what to buy with 150k. Does this buy my freedom?
I could add more, but for now I'll leave it short. Sorry if I being too long with the post!
I will be so glad if we could discuss on this [/size]