Today we talk with Ines from Portugal. She currently lives in Germany and works in banking and finance, and is investing in real estate in her homeland in order to accelerate her path to FI.

We also talk about:

• Real estate investing
• A different mindset to achieve FI
• The importance of budgeting
• Portugal as a convenient place for investing
• How the current political situation can influence investing
• Renting vs. buying

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Pros and Cons of real estate investing

Ines finds investing in real estate more reliable than stock markets, which she believes are too unpredictable. Real estate has its risks too of course, but she has developed a set of strategies to deal with the uncertainties and minimize the costs that are involved – or at least organize them in a more manageable way. From buying houses while still in construction to the areas where it’s more profitable to invest, to the type of renting scheme and bank loan if need be. In the end, it’s the specific knowledge of the market you work in that makes the difference. 💁‍♀️

Different mindsets and lifestyles in banking

Working in a financial environment gives Ines many advantages in her journey towards financial freedom: apart from a high salary, she can access a lot of information on market trends and knowledge of how to consciously deal with that information. Strangely, she notices that many of her colleagues don’t follow the same path, and always put the bar higher with ever growing needs (a bigger car, expensive clothes, exclusive restaurants…) that often exceed their financial capabilities. A more frugal attitude and a focus on budgeting can lead to a more balanced management and much less stress in the end!

Portugal’s advantages for investing

Working in Germany and investing in Portugal lets Ines currently enjoy the best of both worlds, as her salary in Germany is much higher than it could be in Portugal for the same role, while her homeland provides many advantages to her real estate investing activity (#geoarbitrage). She has first hand knowledge of the situation in place, of the language, and of the pitfalls that it can hide. She also has a snazzy network of contacts she can rely on while she’s not there. Moreover, for her specific short-term renting activity she can count on a big tourist boom at the moment.

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Links

• Ines’s blog Piggy Banking
• Paula’s podcast: Afford Anything