Today we talk with the Financial Gladiator, a German who is now traveling the world after having reached financial independence. After investing in Polish real estate at the right time and with the right mentality, he now has a consistent flow of passive income. In addition, we talk with him about different investing strategies.
We also talk about:
- Investing routes and personal preference
- Net gain percentages with real estate
- Macroeconomic indicators
- Driving factors in choosing a house
- Timing the market
- Frugality/income balance
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Real estate can be an effective investment strategy to reach FI
The Financial Gladiator started investing in real estate about three years ago, and left his corporate job in management consulting shortly after. He chose this type of investment over stock market because he was familiar with it, but mostly because he felt that investing in stock market implied giving away much of the control.
Although real estate may give a lower yield, it does give extra control. The extra work to manage the various aspects of his property investments are well worth it in his opinion, since it’s much less than what his corporate job took!
The advantages of investing in developing countries and some practical tips
The choice of Poland was dictated both by his familiarity with the context (his family is originally Polish and his grandmother currently lives there) and a comparison with other countries such as Australia and Singapore. The exchange rate was extremely favourable at the time he entered the market, and the real estate market was still undervalued after the 2008 crash. Careful analysis of the market dynamics and listening to people locally gave him valuable insights into buying the right properties.
Strategies for FI through overseas investment
Differentiating the country to invest in and the country to live in plays a key role in the strategy of the Financial Gladiator. Although he is travelling around the world, his key assets are in Poland. And he says that anyone can do this! Even though the current situation may not be as favourable as the one he found, he says that with a local agent and some good research, others can also get in on the Polish market. Oh, and it’s a beautiful country to go visit too 😉
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