Earlyout01
Dryer sheet wannabe
- Joined
- Jun 20, 2015
- Messages
- 16
Hello everyone. I am currently 48 years old and will be ER within the next two years, hopefully. I currently have a very aggressive asset allocation in my portfolio and I know that I need to dial it back a little. I have a high risk tolerance and am in a profession that I could easily go back to work on a part time basis if need be and I am not opposed to that idea.
Therefore, my question is that I am considering purchasing a condo for strictly rental purposes in a coastal area that we will be ERing to. I would much rather purchase that as opposed to adding a higher percentage of bonds to my portfolio. The real estate would provide about a 6% ROI net of expenses and barring any unexpected expenses. Being a condo, I would not expect a great deal of appreciation in value, but conversely, I would not expect much of a decrease in value either in a real estate down turn either.
Currently, the idea of holding a piece of rental real estate that I will be purchasing with cash sits better with me mentally versus holding bonds. I am looking for opinions on if I could consider the RE as down side protection in my portfolio instead of holding that percentage of my portfolio in bonds.
Thanks in advance
Therefore, my question is that I am considering purchasing a condo for strictly rental purposes in a coastal area that we will be ERing to. I would much rather purchase that as opposed to adding a higher percentage of bonds to my portfolio. The real estate would provide about a 6% ROI net of expenses and barring any unexpected expenses. Being a condo, I would not expect a great deal of appreciation in value, but conversely, I would not expect much of a decrease in value either in a real estate down turn either.
Currently, the idea of holding a piece of rental real estate that I will be purchasing with cash sits better with me mentally versus holding bonds. I am looking for opinions on if I could consider the RE as down side protection in my portfolio instead of holding that percentage of my portfolio in bonds.
Thanks in advance