geo arbitrage and living.

[talper]

hello, i live in one of the prciest cities in the world.
im 35 years old, life coach with a stop in the buisness.
i also get a monthly 600 dollars disability.

i just decide to sell my over prices appartment here,
kill the debts before they kill me,
and after all will be left with 640-670k dollars to invest.

in order to fulfill my future(i have a euro passport)
i also decided to move to a much cheaper country, probabely warsaw.
regarding my buisness - im not sure yet ill be able to lift it and make it
international but it is an option.
so 600 a month + 650k investing + possible buisness.

whats my best action here?
a mix of long term/dividend growth/real estate i guess.

i aim to get 50% to reinvest a month, where now,
also because of my buisness stop and spending, im in a pretty poor
situation monthly in my country.

thanks

 

[captain3d]

We rent in an expensive city and own rental property in cheap cities

 

[Sunset]

hello, i live in one of the prciest cities in the world.
im 35 years old, life coach with a stop in the buisness.
i also get a monthly 600 dollars disability.

i just decide to sell my over prices appartment here,
kill the debts before they kill me,
and after all will be left with 640-670k dollars to invest.

in order to fulfill my future(i have a euro passport)
i also decided to move to a much cheaper country, probabely warsaw.
regarding my buisness - im not sure yet ill be able to lift it and make it
international but it is an option.
so 600 a month + 650k investing + possible buisness.

whats my best action here?
a mix of long term/dividend growth/real estate i guess.

i aim to get 50% to reinvest a month, where now,
also because of my buisness stop and spending, im in a pretty poor
situation monthly in my country.

thanks

Not sure what you mean by the "aim to get 50% " wording.

In another country will you still get the disability of $600 /mo ? Seems to me if it's from a private insurance, then probably yes, but if from the gov't then I doubt it.
Do you know for sure ?

Things don't seem really rosy, to me the $670K invested at age 35 to live on could sustainably generate probably 2.5% withdrawal rate which works out to only $16,750 per year.

The median Polish income per year in Warsaw is 93,400.00 Polish Zloty =
22,098.44 US Dollar

 

[l8_apex]

Be sure to research potential salaries in your new location before you move. You may end up deciding to choose a more expensive city if your future salary/pay is significantly more in the new city. Keep in mind this it not a permanent or forever decision. Perhaps another 10 years of work will result in enough savings to early retire, at which point you can choose a new retirement location.

 

[EastWest Gal]

Talper, your profile suggests you are located in Tel Aviv, I'm guessing you have an Israeli disability pension. If it is government disability, it looks like you will lose it if you move. Warsaw is much cheaper according to the internet, but the winters are long and cold.

 

[pjigar]

Been there, done that. I have two words for you, keep working. You are too young with too little money to do geo arbritage unless you move to a developing country where quality of living will suffer.

 

[jazz4cash]

We rent in an expensive city and own rental property in cheap cities

Wondering if OP might consider renting present residence to generate income to support living in a LCOL area.

 

[captain3d]

Wondering if OP might consider renting present residence to generate income to support living in a LCOL area.

Generally does not work out as HCL cities have relatively low rent compared to house prices. That is why we rent.

 

[jazz4cash]

Not my HCOL area. Rents are almost as high as mortgage payments but many do not have down payments or move too frequently to buy.

 

[captain3d]

Cheap rent = below 0.5% of purchase price, per month.

CA HCOL areas are typically 0.35%

Good investment property areas are 1%