I am 20, can I retire by 30 through property?

lol

 

NSW, QLD mate.

 

Just travel... 30k a year is plenty to just travel for as long as you want and the good thing about travel is your new best friend is just a check in at the next hostel away!

 

Yes.

 

I think this hits the nail on the head. Best time to travel/have fun in your life is in your 20's/early 30's. As some others here have alluded to, scrimping and saving during this period just to "get on the property ladder" or to "retire by 30/40" and miss out on these years is failing to see the big picture. I spent most of my 20's/early 30's having the time of my life and living in Europe/seeing the world. Didn't buy my first house until I was 34 and my first IP at 44. Sure the person who started investing in their the 20's may have 5 IP's by now but at what cost? I wouldn't change a single thing and I know I will be very comfortable in my retirement.

I don't see the point of having no life during my best years just to have more money/assets when I'm too old to fully enjoy it. Also in your 20's if you want to truly invest in something worthwhile and will pay far greater dividends one should invest in themselves (education/experiences/business opportunities) rather than just speculate on property.

 

Doesn't have to be living a miserable life in your 20s while investing madly. I recall having the time of my bloody life in my 20s while investing quite aggressively.

 

While I didn't travel as extensively as others, I have done a reasonable amount and I don't feel that I've been missing out. When you're in your 20s, you can go on a three month holiday and only spend a few thousand dollars, sleeping in dorm rooms or on floors. I've done both and I enjoyed it.
Personally, I didn't start investing in my early 20s either, I did however start in my late 20s and I'm very glad that I did.
While I agree with you that you shouldn't save every single penny to buy a property if it means that your life sucks at that time, however, I don't think you have to make that choice. You can save and buy a property and have a great time and travel while doing so. Your three star hotel might become a shared room in a hostel, but so what? If anything you'll experience travelling more intensely and meet all sorts of weird (and sometimes wonderful) people.

@Biz, here are a couple of examples from my earlier graph of places that I've been to on my Biannual Holiday*.



*most Biannual Holidays were taken within Australia.

 

`Geez, I wouldnt be happy retiring on $30/$40k post tax. Why not continue working (part time) and investing for another 5 to 10 years to 40 so you can retire on $100k post tax? You could live a much more full filling life and be able to provide significantly better for any children if you were to do so.

I feel with $30k pa and retiring at 30 you'll be living a rather uneventful life

 

Everyone's different. With a home paid off I could very happily live off $30kpa in Aus.
I could also say, rent out the home, bumping my "income" to $50k+ then have a great 10-20 years in Hungary, then if/when I get sick of low COL parts of the world, come back to Australia knowing I've got my own "universal basic income" and anything I earn is fun/extra money.

Honestly it doesn't sound that bad at all to me, sure if you've been overseas from age 20 - 40 finding a job is going to be a bit more challenging depending on what sort of story you can spin, but you'll still find something & you've got enough passive income from slogging it out in your 20's than you're only looking for work to buy yourself "wants" all, you've got enough money to cover your needs.


Geographic arbitrage goes a long way. Budapest is an incredibly beautiful place / the austro-hungarian empire built some incredible things. $30,000 - $50,000 aud is a lot of money in a country where the average (median would be even lower) wage is $10,300 aud a year. Could easily spend a few decades exploring Europe with Hungary as the home base, drinking incredible and underpriced wine (they've been making it since the Romans, they know what they are doing! A lot of it is world class, but they don't have the same brand recognition as other european nations) and meals that would cost several times more in Australia... There is far more "to do" in Budapest than in any Australian capital city for those of us who aren't sports mad.

Visas would be a pain in the butt, but you can get long term residents visas for Spain with that sort of money, so I assume Hungary would have something similar.

The world is a very, very large place and there are plenty of opportunities for those who are willing to leave a very high cost of living country like Australia to go abroad and benefit from the difference. Europe especially is fascinating, some of the price differences between say, the South of France, then an hour away over the border to the north of spain, are absolutely mind boggling to anyone who has grown up in a really large country like Australia.

Thailand also has a booming ex-pat scene, but they are mostly "digital nomads" & personally I wouldn't want to live in Thailand long term, its a developing country, vs Austro-Hungary used to be one of the greatest super powers.

 

No plans to have kids then I guess?

 

If he does, a Hungarian wife sounds pretty damn good as the option to do it

 

No plans at present.
$30k-50k aud would still be very doable overseas though (because its still 3-5x the average wage) & it would also be more than enough to use as basic income to come back to Australia & get setup here again.

lets ignore inflation (because presumably in this scenario we are investing enough to counter it and $30k is our long term safe withdrawal rate). Boot the tenants, there's the house sorted, $625 a week to cover the other cost of living expenses. Pickup 2x shifts stacking shelves at woolies for a total of 15.2 (2x 7.6) hours a week at the national minimum wage of $17.29 an hour = $262 a week extra in wages for a combined total of $887

I mean sure, you're not going to be sending them to amazing posh private schools, but a home paid off + $30k passive = more then enough to comfortably support a family to a better standard than most I know of. Throw in the 2 days a week of work and $887 is nowhere near the live like a hungarian king lifestyle, but I & a small family could still be very comfortable with that and I only have to work 2 days a week.

The household I grew up in had waaaay less than that in the budget and we all had a great childhood.

Lets say you decide to stick around in Hungary because you fell in love with a local.. Well you're still earning 3 to 5x the average wage, assuming your partner doesn't work, compared to the other locals you're rich.

 

The king **** on turd island effect?

 

Are you referring to the popular Taiwanese milk tea? ...yum

 

Of course not, you're 20.

I've done this and I really would prefer to work 30 hours, doing something I mostly love and earning $100k. If you have to work at Woolies for 15 hours a week to get by, you're better off working full time than doing some mind numbing task for 2 days,

The issue is, what happens if you decide to have a large family or something else happens where you are required to have slightly more money than the average person? If you haven't worked or gained a degree for 5 years you're going to find it hard to get back in to the workforce.

Things have changed...a lot.

Happy to live somewhere else, that's perfectly fine, I just don't think you'll be able to live a comfortable life in Australia for $30k.

What's the point having all that time if you cant do anything with it?

 

hehe yep. My favourite was bai xiang hong cha

Never really liked zhen zhu nai cha..

 

My favourite is - bing cha.

 

Nice .
I lease out my commercial property with one of those brand from Taiwan. They bought the master franchise and have opened so many of them in Indonesia.

 

$

I'm not the thread creator, I'm in my 20's though.

Obviously I would try to find something I love that I could do 2 days a week (although I'm increasingly suspicious I'm not wired to love any form of "work"), but I don't mind that sort of work in relatively small doses. Its sort of like getting paid to exercise. When it becomes full time, that's hell.

Again I think it depends on the story you could spin. I'm in tech and I'm very confident I could take a decade off and get back into the industry with 3-6 months of knowledge cramming. Plus I've already got the degrees.

Have they though.. Keep in mind my childhood wasn't that long ago.
My family rented our childhood home (as I previously mentioned, not a wealthy upbringing).
it was worth $190,000 when my parents moved into it, then $470,000 when they moved out 18 years later.

I'm pretty confident I could support a single child household on $30kpa with a PPOR paid off.

$30k wouldn't be enough. $30k + PPOR for me, would be. But I also wouldn't be having a large family.

What are you doing that costs so much money?

My weekly budget at the moment is roughly:
Housing, 3.5km to CBD - $200 week
Transportation - $50 week (could cut this so much by ditching the car. I do maybe 1,500km a year max in my car)
Yearly international holiday fund - $80 week
Food - $40 week
Restaurants & entertainment - $70 week
Phone & internet - $20 week
Private health insurance - $19.50 week
Clothes - $15 week
Gym - $9.50 week
Misc - $20 week
Misc bills - $30 week
= $554 a week. That leaves me with $22 a week / $1,12 a year spare.

& I feel like I live a pretty ridiculously hedonistic lifestyle as is with my:

• Ridiculously inner city living (I can ride my bike to the CBD, get a coffee and be back in under 30.. I don't though, because I have an awesome coffee machine that I've learned to fix myself thanks to youtube.)
• Car that I only really use to visit my folks because its a 30 minute drive vs more like 1hr on a train + walk
• Yearly overseas holiday
• Dinner and a few drinks 2-3x a week
• Consistently updated wardrobe
• Fancy gym with a pool and other cool equipment because I don't want to use my building's facilities like a pauper

I mean the only things I would ever say I really do to "save money" is buying my groceries at the market, which is mostly just an excuse to go get a coffee and walk along the river on a saturday morning & I points hack/monitor ozbargain for deals to get much cheaper flights.

I feel like I live a great lifestyle on under $30k AUD as is & I could probably save on a fair bit of that by not working as I wouldn't go for an after work beer so much, need to live so close to the CBD or care if my clothes were getting a bit rattier.

 

Awesome. Do you have any plans for commercial propery in Indo? I'd be lying if I said it never crossed my mind..