You are probably thinking, what does property investment have to do with travelling? Well, for us it was the key to funding our worldwide travels. Without our investments in property we wouldn’t be travelling now and it’s unlikely we would have had the opportunity to see the world. So for that reason, you’ll find a category in our blog dedicated to property which we hope you’ll find useful and inspiring should you wish follow a similar dream.
It’s at this point that I would like to say that we are completely average people from average working families and do not come from money, our “banks of Mum and Dad” were only full of love, and for that we’re eternally grateful. So as you read on, don’t think this is not something you can achieve too, it really is, you just need dedication and a little sacrifice :).
A DIFFERENT WAY OF THINKING
When people decide to go travelling they often start by thinking “where do I want to go, how long do I want to go for” and “how much is that going to cost?”. After that, the hard work begins, they work like mad and save every penny. To us this just seems crazy, you work hard, save enough, travel the world and have a fantastic time but in the back of your mind you know your money will run out, and when you get back home you’ll have nothing. Of course you can always work as you travel, but realistically when you get home, you’re back where you started.
Our thought process was different, it was not based around how much our trip would cost in total but more importantly how much it would cost each month to survive anywhere in the world we wanted to go. We then started investing our money in property with a goal of generating enough income to live / travel anywhere in the world. This would allow us to travel endlessly and avoid coming home to an empty bank account and the reliance to start working again. Property investment wasn’t something we solely got into to fund our travels, we did it because we knew it would give us the freedom to escape the daily grind of working 9-5 for 65 years!
PASSIVE INCOME EXPLAINED
As mentioned, we aimed for an income that we thought would allow us to travel modestly, it was also important to us that this income was completely passive. What do we mean by this? Well if you are generating income that requires you to do absolutely nothing, i.e. your interest on your savings account, or dividends from stocks, then this would be classed as passive income. You do nothing and still make money.
Currently we manage all of our properties ourselves as we’ve found that we can offer our tenants a superior service compared to many letting agents. Because we have chosen this approach we do have to do a little work now and then, but mostly this is just answering the phone when something breaks and then sending out a tradesman to fix it. Seriously, that’s not much work and to date it’s been completely manageable from the other side of the world. In fact, so far I think we’ve averaged less than an hour per month on property related tasks.
TOO GOOD TO BE TRUE?
We know, getting paid each month for very little work sounds too good to be true! But bear in mind there was a time for hard work, it took us 4 years to make this happen. Giving up all our free time, weekends and holidays to purchase, renovate and tenant our portfolio. We both reduced our spending to the absolute minimum, saved everything and drove £500 cars covered in magnolia paint! We were constantly being told by people that we work harder than anyone else they knew our age and sacrificed so much. All our friends were buying amazing homes, expensive cars, and we were turning up to posh dinner parties with stains on our best clothes.
Building a portfolio when you start with nothing is hard work, but we are reaping the benefits now and can travel the world endlessly if we so choose. And if we can do it, no doubt you can too!
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