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As a young guy, rent and invest in a business, or race-to-real-estate as fast as possible?

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klasp100

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I am 24. Where I live, real-estate prices are going off the charts. Should I try to get in the game as fast as possible on a "starter" home, possibly rent it out for 6 months and live in it for the other 6, for it to qualify as my permanent residence and save on taxes? Or should I just rent and use the money on something else? There are so many rich immigrants that come to live here, and foreign investors that invest on speculation because of this phenomenon that the houses keep climbing in price. The government just put in place laws to prevent non-residents from investing in real-estate because of it. But the high prices also means that getting my foot in the door of the real-estate market is going to take longer, even for a "starter" home.

Thanks
 
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ZCP

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What is your outcome?
What is your why?

What says real estate is the correct path to obtain your outcome?
Thoughts?
 

Antifragile

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There are so many rich immigrants that come to live here, and foreign investors that invest on speculation because of this phenomenon that the houses keep climbing in price. The government just put in place laws to prevent non-residents from investing in real-estate because of it. But the high prices also means that getting my foot in the door of the real-estate market is going to take longer, even for a "starter" home.

No one can tell you what to do. This is your life, your decisions that will drive outcomes for you only. And there are just too many variables that we don't know about you to try. If you are about to become the new Elon Musk, I am thinking you'll be fine with high RE prices in the future.

But seeing your message (quoted above), I can't help but wonder if you are being naive in your perception of what is happening in Real Estate. Your comment on "rich immigrants" and "foreign investors" that cause you problems and you precious government helping you with "laws to prevent non-residents from investing in real-estate" is making me shake my head.

You are 24. You should do your own research. Just because media and your politicians tell you something doesn't make it true. Especially with real estate. I won't do the work for you, because I am prickly like that, nothing will be handed on a silver platter. But if you want success, start reading books. Maybe this: "Capital in the Twenty-First Century" book by Thomas Piketty to learn bout Paris and the impact of immigrants / foreign investors on the price of real estate.

Here is a hint... the local rich are far richer than you think.

Good luck.
 

klasp100

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Feb 10, 2021
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What is your outcome?
What is your why?

What says real estate is the correct path to obtain your outcome?
Thoughts?
Income: zero, living on savings, but still at my parents house for 2022. I am studying to apply for a job at the same time, as it will pay 90k starting salary, and I am likely to get in within a year. I spent 1000$ on a course for this path. The course is very good. It's in a niche that is exploding right now, but is next to impossible to get into as an entrepreneur as the startup costs are HUGE and you'd be competing with the likes of Microsoft and Google, so yeah. The only likely business you can build as a one-man startup with low funds in this area is in consulting.

My Why: freedom. I can work 90+ hours a week if it means I can be free in 10 years. I already do put in those hours. It's not concrete action, as I am still hovering between finishing the program (another 7 months) and just getting a OK-pay low-IQ job so I can focus on a Fastlane business without draining my willpower. It is mostly studying, reading, and creating a solid mental model about the fundamentals about business and finance. However, I already spend 0 time on entertainment and such, only time off is when I am with my gf or going to the gym. Even then, I read on the bus and listen to podcasts sometimes if I don't go too hardcore in that training session.

Real-estate is a way to not "waste" your money. Meaning when you pay rent, the amount paid is lost. For real-estate, you lose on the interest you pay, but after a couple of years you pay more towards the capital than towards the interest, so your money is used more and more efficiently as time goes on. Then you can re-mortgage and buy a bigger one. Even better buy a quadruplex, live in one, rent the other 3. You can sell it just like a business when you want to change.

The kicker is that making payments for a mortgage is going to take a large amount of my money (for the starter home), so I wouldn't have as much left to put in a business, locking me down to my job even more.

Is using the money for a Fastlane venture going to be more profitable even though I will be burning money on rent? The upside is you don't have debt and can take a lot more risk that way.

I guess it comes down to: will I be able to sell my business just like I would be able to sell my real-estate. If I can't sell the business, then it's a bad idea. I must be able to make an exit while taking a fat bag.
 
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ZCP

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@PC Duss have you read MJ's books?
Rat Race and Unscripted will help you target the broad beam of light you just laid down above. Laser focus will help you achieve your outcome. Keep talking it through here.....

What are your big 3? The next 3 items you WILL get done THIS week to achieve your goal.
 

klasp100

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Feb 10, 2021
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No one can tell you what to do. This is your life, your decisions that will drive outcomes for you only. And there are just too many variables that we don't know about you to try. If you are about to become the new Elon Musk, I am thinking you'll be fine with high RE prices in the future.

But seeing your message (quoted above), I can't help but wonder if you are being naive in your perception of what is happening in Real Estate. Your comment on "rich immigrants" and "foreign investors" that cause you problems and you precious government helping you with "laws to prevent non-residents from investing in real-estate" is making me shake my head.

You are 24. You should do your own research. Just because media and your politicians tell you something doesn't make it true. Especially with real estate. I won't do the work for you, because I am prickly like that, nothing will be handed on a silver platter. But if you want success, start reading books. Maybe this: "Capital in the Twenty-First Century" book by Thomas Piketty to learn bout Paris and the impact of immigrants / foreign investors on the price of real estate.

Here is a hint... the local rich are far richer than you think.

Good luck.
I know what you mean. The victim mindset. This isn't what it is. I actually saw your username a while back and loved it.

I don't listen to mainstream media, I don't watch TV. When my family watches, I willfully block it out of my mind because I know it's BS. I only keep an ear open for Covid regulations so I don't get prevented entry somewhere by accident.

I'll read that book, thanks for the suggestion.
 
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klasp100

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Feb 10, 2021
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How are you going to qualify for a loan with no income?
With the high-paying job I would be getting in less than a year. It's extremely high-demand and almost no one has the skillset. That's why I am trying to decide now what my plan is. If I am going real-estate route, I would need to get the job in order to own my first property as fast as possible. If I don't go the real-estate path, then the job holds much less value. The real-estate path is definitely a lot less Fastlane. It is looking like 10years plus to own anything decent. The more I repeat it in my head, the less appealing it sounds. You guys are cunning making me say it aloud haha
 

klasp100

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Feb 10, 2021
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@PC Duss have you read MJ's books?
Rat Race and Unscripted will help you target the broad beam of light you just laid down above. Laser focus will help you achieve your outcome. Keep talking it through here.....

What are your big 3? The next 3 items you WILL get done THIS week to achieve your goal.
I have read TMF . I haven't read the following two. I'll read Unscripted as soon as I finish Winning Body Language, by Mark Bowden, which should be tomorrow at the latest. The Great Race Race Escape right after that one. Then, Capital in the Twenty-First Century, as recommended by @ZCP. The 3 books should be done within 2 weeks.

I'll postpone studying for my program until I at least finish both of MJ's books.

1) Finish Winning Body Language, and start and finish Unscripted .
2) Start Rat Race
3) Read the books out loud when I can to practice my English pronunciation, as I don't have many people to speak English to, so my English is rusty.
 

srodrigo

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Where I live, real-estate prices are going off the charts. Should I try to get in the game as fast as possible
Dude, I'm no real-estate expert by any means, but this sounds like FOMO. Think about it very carefully, you could be getting caught into a bubble that's going to burst and leave you with stuff that's worth less than what you paid for.
 
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klasp100

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Feb 10, 2021
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Dude, I'm no real-estate expert by any means, but this sounds like FOMO. Think about it very carefully, you could be getting caught into a bubble that's going to burst and leave you with stuff that's worth less than what you paid for.
It's a bubble because of the foreign investors. Now that they are cut out of the game, things should settle. But yes, the fact that it was a potentially a bubble is one more negative point towards it. I am not on FOMO, it's just that with the 0% tax incentive does make a point for that case. Otherwise, here you pay up to like 52% income tax. But the more I am thinking about it, the more I am leaning towards the business.

My WHY is freedom, so that would be more fitting than keeping a job and hustling to climb in corporate, which is precisely the rat race, even if in the end I am doing it for the real-estate exit. It might be too long.
 
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BD64

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With the high-paying job I would be getting in less than a year. It's extremely high-demand and almost no one has the skillset. That's why I am trying to decide now what my plan is. If I am going real-estate route, I would need to get the job in order to own my first property as fast as possible. If I don't go the real-estate path, then the job holds much less value. The real-estate path is definitely a lot less Fastlane. It is looking like 10years plus to own anything decent. The more I repeat it in my head, the less appealing it sounds. You guys are cunning making me say it aloud haha
Actually 3 years. Lenders will want to see 2 years of consistent W2 income before they lend to you.

As a 25 y/o with multiple properties, my advice to you is to worry less about investing and more about generating cash.

What can you do tomorrow to actively put a few more bucks in your pocket? Figure that out part and then make enough money to where spending time on investing it makes sense.
 

BD64

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Dude, I'm no real-estate expert by any means, but this sounds like FOMO. Think about it very carefully, you could be getting caught into a bubble that's going to burst and leave you with stuff that's worth less than what you paid for.

It's a bubble because of the foreign investors. Now that they are cut out of the game, things should settle. But yes, the fact that it was a potentially a bubble is one more negative point towards it. I am not on FOMO, it's just that with the 0% tax incentive does make a point for that case. Otherwise, here you pay up to like 52% income tax. But the more I am thinking about it, the more I am leaning towards the business.

My WHY is freedom, so that would be more fitting than keeping a job and hustling to climb in corporate, which is precisely the rat race, even if in the end I am doing it for the real-estate exit. It might be too long.
Foreign capital... bubbles? Yeah, not likely.
 
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biophase

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With the high-paying job I would be getting in less than a year. It's extremely high-demand and almost no one has the skillset. That's why I am trying to decide now what my plan is. If I am going real-estate route, I would need to get the job in order to own my first property as fast as possible. If I don't go the real-estate path, then the job holds much less value. The real-estate path is definitely a lot less Fastlane. It is looking like 10years plus to own anything decent. The more I repeat it in my head, the less appealing it sounds. You guys are cunning making me say it aloud haha
I don't quite understand your plan here. So if you decide to buy a home, you would take a job a year from now. If you decide not to buy real estate, then what are you going to do?

I would think that you would choose the best direction that would make the most money.
 

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So many variables in regards to real estate and it sounds like your government is putting in some interesting laws.

Houses have up's and downs, high interest rates and low interest rates.

Take my area in QLD, Australia. Average rent across the board is $1800 a month.
I have a pay $2100 of my mortgage each month.

For my wife and I buying a house was a no brainer, we were at one stage paying $1200 a month in rent however wanted to take the security & stability of home ownership. However the only way we got in to the housing market was to go back home with the inlaws - 2 dogs and 2 cats and SAVE SAVE SAVE.

If your saving goal is home owner ship - sweet
If your saving goal is to start a bussiness which solves a problem (follows CENTS ETC) - sweet
or a mixture of the both.

If in the next 2-3 years you do buy and want to rent out rooms and use that income to minimize the mortgage or invest (business ideas) - that is a great idea. But buying a house (timing the market) is bloody hard - long term investment property, get in sooner than latter (over 30 years you should break even)

Bubbles have come and gone, I feel like I brought my house at the peak - but long term a house is a necessity.

Also I had so many people tell me about foreign investment pushing up prices in my country, check the numbers - I discovered foreign ownership is very low, cheap money and a real estate / money system in my country has not helped my generation get into home owner ship (but once again - if you want it, go get it)
 

klasp100

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Feb 10, 2021
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I don't quite understand your plan here. So if you decide to buy a home, you would take a job a year from now. If you decide not to buy real estate, then what are you going to do?

I would think that you would choose the best direction that would make the most money.
In the short run, the job would give me the most money. In less than a year I would be bagging ~60k/annum after taxes here. However, I know I want to launch a business which fills a gap in the market as soon as possible. I am still figuring out an idea that can scale on the internet, that hasn't been overdone a million times and where the competition is not already jam-packed.

The reason I am at a crossroads is that I must leave my parents house asap. The job would allow me to leave with nearly 100% certainty and live decently. Whereas launching a business would mean I would have to work a low-ish paying job at the same time, probably paying around 30k/annum after taxes. I don't mind living a bit more poor for a while, but I don't know if I should just bite the bullet and finish my program that has around 7months worth left and postpone entrepeneurial thinking while I grind it out.

The alternative like I said would be to postpone/stop my progress in the program and just spend a whole day alone in a dark room to figure out an idea and start executing asap. Maybe resume my program a week or two after if I can manage both, albeit each at a slower pace.
 
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klasp100

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Feb 10, 2021
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33
No one can tell you what to do. This is your life, your decisions that will drive outcomes for you only. And there are just too many variables that we don't know about you to try. If you are about to become the new Elon Musk, I am thinking you'll be fine with high RE prices in the future.

But seeing your message (quoted above), I can't help but wonder if you are being naive in your perception of what is happening in Real Estate. Your comment on "rich immigrants" and "foreign investors" that cause you problems and you precious government helping you with "laws to prevent non-residents from investing in real-estate" is making me shake my head.

You are 24. You should do your own research. Just because media and your politicians tell you something doesn't make it true. Especially with real estate. I won't do the work for you, because I am prickly like that, nothing will be handed on a silver platter. But if you want success, start reading books. Maybe this: "Capital in the Twenty-First Century" book by Thomas Piketty to learn bout Paris and the impact of immigrants / foreign investors on the price of real estate.

Here is a hint... the local rich are far richer than you think.

Good luck.
You were right, I checked directly at the source, and it is only a small portion of foreign. The big majority are local investors. It's still much higher than for the rest of the country, but minimal in comparison to local investors. Thanks for the nudge
 

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