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Hey there guys,
Hope you're all doing awesome, and it's fantastic to connect with like minded people on this forum.
I know I've just registered here, but I'm looking forward to contributing, also I feel that I have to be totally honest and transparent about my situation.
This post helps not only document my progress here on in, but also helps me receive honest feedback.
See, I've been running my online business for 9 years, created multiple digital programs, but the last years I'm been cutting business expenses drastically to show good profit so that I can get a loan from the bank to buy an apartment.
I know it's a slowlane mentality, but I feel having a "base" somewhere rather than constantly moving around paying rent, would help become a fortress to then scale up with some form of stability, that would also help me feel more comfortable taking more risk with paid traffic techniques.
Also say in 5 years time or so, when it comes to selling the real estate, hopefully it'll have appreciated a fair bit which will give me cash to push into other investments. (Long term would be great to build a real estate portfolio that brings income, so that no matter what my expenses are covered).
I'm coming up to 34 years old, single, and guess that having no real estate at all, it feels like time is starting to run out. Not building any equity, not diversified. I guess when I'm in my golden years say in 35 years it'd be great that at the very worst case scenario I'd have a paid for place, a hard asset I can rely on.
Here's the challenge.
Because all I've ever done is internet stuff I'm in a real comfort zone. When I was younger, I was reinvesting back into my sales process / sales copy etc, around $80,000 or so, it's turned a profit and producing cash flow which is great. But because the last years I've essentially suffocated the business (used free traffic techniques the last years to minimize risk and show steady profit to get a mortgage), I've developed a scarcity mentality, I'm scared to pull the trigger, I'm wondering if I can really afford it but I also know sometimes you just got to go "all in" and know you'll figure it out once taking the leap.
The great thing with renting, if you have rocky months in the business, if a recession hits, if technology changes, you're nimble so can move anywhere to scale living expenses to almost nothing. But I know at some point I have to take risk and step out otherwise I'll be in a perpetual state of overthinking and getting nothing done.
Here's the deal: The bank will lend me around £210,000 mortgage based on the last 2 years profit of the business...
I have around £33,000 saved, credit is good, and I know it's important how I use that cash to springboard me here on in.
There's a few options:
Option 1:
Keep 6 months personal expenses as emergency fund: £15,000 set aside.
Keep 6 months business expenses set aside: £8,000
Keep head down and build on the £10,000 to buy somewhere in a few years time on top of the emergency funds.
Option 2:
Build on the £33,000, and go "all in" buying a condo / house in cash in a cheaper part of the country in a few years time.
Would have to move to another part of the country, but I don't mind that if it means a future of financial freedom and not being house poor.
Option 3:
Put 10% down on a studio apartment, live a minimal lifestyle. Could probably buy a studio apart somewhere around here for £165,000, £16,500 down + added fees.
Option 4:
Put 10% down on a 2 bedroom apartment at around £230,000, around £23,000 down + added fees.
Would have a very small cash buffer.
Outgoing mortgage would be around £742 month, rent out the extra bedroom to a friend for £500/month.
£242/month mortgage expense + around £150/condo fees + repairs as and when.
A place to build on my fastlane business, while building equity, an asset that long term should appreciate in value (south of UK, long term appreciation is good).
Option 5:
Start a property company. Use downpayment for first small cash-flowing buy to let deal in a different part of the country. Continue renting but would lose perks of a first time buyer.
Not sure if it's fear of stepping into the unknown, or legitimate concern. I know this is a post seeking validation for my turning point in life, but frankly I feel alone not being able to bounce this off of forward thinking people, and have been constantly running this through my mind. There's nowhere better than amongst other entrepreneurial minds, maybe those who have maybe been in the same situation.
Thank you for anyone that takes the time to read this.
Hope you're all doing awesome, and it's fantastic to connect with like minded people on this forum.
I know I've just registered here, but I'm looking forward to contributing, also I feel that I have to be totally honest and transparent about my situation.
This post helps not only document my progress here on in, but also helps me receive honest feedback.
See, I've been running my online business for 9 years, created multiple digital programs, but the last years I'm been cutting business expenses drastically to show good profit so that I can get a loan from the bank to buy an apartment.
I know it's a slowlane mentality, but I feel having a "base" somewhere rather than constantly moving around paying rent, would help become a fortress to then scale up with some form of stability, that would also help me feel more comfortable taking more risk with paid traffic techniques.
Also say in 5 years time or so, when it comes to selling the real estate, hopefully it'll have appreciated a fair bit which will give me cash to push into other investments. (Long term would be great to build a real estate portfolio that brings income, so that no matter what my expenses are covered).
I'm coming up to 34 years old, single, and guess that having no real estate at all, it feels like time is starting to run out. Not building any equity, not diversified. I guess when I'm in my golden years say in 35 years it'd be great that at the very worst case scenario I'd have a paid for place, a hard asset I can rely on.
Here's the challenge.
Because all I've ever done is internet stuff I'm in a real comfort zone. When I was younger, I was reinvesting back into my sales process / sales copy etc, around $80,000 or so, it's turned a profit and producing cash flow which is great. But because the last years I've essentially suffocated the business (used free traffic techniques the last years to minimize risk and show steady profit to get a mortgage), I've developed a scarcity mentality, I'm scared to pull the trigger, I'm wondering if I can really afford it but I also know sometimes you just got to go "all in" and know you'll figure it out once taking the leap.
The great thing with renting, if you have rocky months in the business, if a recession hits, if technology changes, you're nimble so can move anywhere to scale living expenses to almost nothing. But I know at some point I have to take risk and step out otherwise I'll be in a perpetual state of overthinking and getting nothing done.
Here's the deal: The bank will lend me around £210,000 mortgage based on the last 2 years profit of the business...
I have around £33,000 saved, credit is good, and I know it's important how I use that cash to springboard me here on in.
There's a few options:
Option 1:
Keep 6 months personal expenses as emergency fund: £15,000 set aside.
Keep 6 months business expenses set aside: £8,000
Keep head down and build on the £10,000 to buy somewhere in a few years time on top of the emergency funds.
Option 2:
Build on the £33,000, and go "all in" buying a condo / house in cash in a cheaper part of the country in a few years time.
Would have to move to another part of the country, but I don't mind that if it means a future of financial freedom and not being house poor.
Option 3:
Put 10% down on a studio apartment, live a minimal lifestyle. Could probably buy a studio apart somewhere around here for £165,000, £16,500 down + added fees.
Option 4:
Put 10% down on a 2 bedroom apartment at around £230,000, around £23,000 down + added fees.
Would have a very small cash buffer.
Outgoing mortgage would be around £742 month, rent out the extra bedroom to a friend for £500/month.
£242/month mortgage expense + around £150/condo fees + repairs as and when.
A place to build on my fastlane business, while building equity, an asset that long term should appreciate in value (south of UK, long term appreciation is good).
Option 5:
Start a property company. Use downpayment for first small cash-flowing buy to let deal in a different part of the country. Continue renting but would lose perks of a first time buyer.
Not sure if it's fear of stepping into the unknown, or legitimate concern. I know this is a post seeking validation for my turning point in life, but frankly I feel alone not being able to bounce this off of forward thinking people, and have been constantly running this through my mind. There's nowhere better than amongst other entrepreneurial minds, maybe those who have maybe been in the same situation.
Thank you for anyone that takes the time to read this.
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